1. What for the loyalty programs are.
- Retain existing clients through a flexible rewards system.
- Increase goods/services consumption by loyal satisfied clients.
- Getting new clients by recommendations from loyal ones.
2. Advantages of bonus points based loyalty programs.
- Selectivity – targeted offers.
- Economy.
- Game element, form an attachment.
3. Coalition programs vs. Private label programs.
- Pro – lower spending, easy to set up a program.
- Contra – lost of focus.
Examples of coalition programs:
- mnogo.ru
- malina.ru
4. When to use loyalty programs.
- High competition on the market of similar products/services.
- No significant flaws in company operations.
- More or less frequent repeat purchases.
5. Program effectiveness.
Before starting the program:
- Set real, measurable goal of establishing the program.
- Don’t expect an immediate result.
Measure effectiveness:
- Indicators – average total amount, activity and repeat rate.
- Feedback – questionnaires.
6. Internet online shop specifics.
- High degree of initial automation.
- Ready customer’s authentication – no problems with cards, purchases record support, etc…
- Easy to establish customer’s notification system to let them know about earned bonus points.
7. Examples.
- Working internet shop – http://www.ulmart.ru
- Internet shop (box edition) – http://www.comoper.com
8. Just a few numbers.
- By participants: in US it is about 1.8 bln. Members of loyalty programs. Average family take part in about 14.1 loyalty program, actively – 6.2.
- By industry: financial services, air industry, retail.
- By countries: USA, Canada, UK.
- By cost: loyalty programs’ support – 2 bln./year.
9.Summary.
- Online trade goes same direction as offline does.
- Local trade develops in the same direction as international.
- Serious adoption of loyalty programs in large cities is a near term trend.
PS
- Slides are in text format to simplify viewing.
- We’ll post a link to the conference a bit later.
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