7/13/2023 0 Comments Colloquy loyalty census![]() Generations of shoppers have proved they are willing to pay for privilege. Loblaw’s curated presidential surprises are a good example, though it may find that occasional refresher packages will be necessary to keep interest alive. However, shopper insights gleaned through purchasing data, opt-in surveys and other feedback can provide tips on new rewards that will keep the program fresh. All perks, fee-based or free, have a shelf life, and shoppers will grow bored of some of them in time. It has to include an element of surprise.This means “smart” also should indicate financial sense - the advantages should carry intrinsic value greater than the fee. Yet at the same time these benefits are inclusive - available to anyone who deems membership important enough to pay for. Those “free” Lululemon pants or shorts are like uniforms that separate the paying members from the others, as is access to member-only workout classes. The paid benefits don’t have to be labeled, but they should be meaningful enough to awash members in feelings of genuine exclusivity. When shoppers can have these consultations on their terms and at the times that work best, it puts them in control. Same goes for the consultations with CVS Health pharmacists about new prescriptions and other needs. Many shoppers would just as soon have someone else manage it. Sometimes, the benefits shoppers are willing to pay for include necessities they simply don’t want to be bothered with, such as product pickup and scheduling. ![]() The perk has to have relevant (and controlled) value.Here are three ways retailers can keep interest, and fees, alive. What matters is attracting those Pareto “80/20-rule customers” who represent the majority of sales and profit. This allows them to create offers incorporating elements of personalization, accessibility and service not possible before. So membership appeal may be broader, but retailers shouldn’t be surprised if the fee still does not attract the majority of consumers. ![]() Today, retailers can be more targeted and specific because their operating environments are digital and they have a plethora of data to mine. The goal was to create a “best customer” program structured to make economic sense to those who bought the most books and would thereby benefit financially from the program. For example, the former Chapters book retailer in Canada (now Indigo) years ago launched a fee-based program, iRewards, entitling members to discounts on book purchases. What is new is the digital and e-commerce environment in which they are executed. prescription advice, can diminish once shoppers grow accustomed.Īfter all, fee-based reward programs are not new. The shine of exclusivity, even in the forms of grocery-funded travel and 1 a.m. Regardless of the fees collected in each of these programs, their success hinges on the perceived value of the advantages. The initiative, launched as a test in 2017, proved successful enough that in December Loblaw expanded availability to all PC Optimum members. These last two perks - because they extend beyond the predictable task of shopping - distinguish PC Insider from typical reward programs. Photographer: Norm Betts/ Bloomberg News. For that members get free online grocery pickup and delivery, an extra 20% back on certain purchases, a home-delivered box of Loblaw’s President’s Choice items, and an annual $99 credit for PC travel bookings. PC Insider - an extension of Loblaw’s free PC Optimum program - charges $99 a year (or $9.99 monthly). Loblaw Cos., the Canadian grocery chain, is giving members of its fee-based program presidential surprises. “Most of the first half of 2019 is going to be tinkering with the program.” “We actually feel we can increase the price to the value of the program and the additional services it offers,” Calvin McDonald, Lululemon CEO, recently told analysts. Lululemon plans to expand the program to other test markets and it may even raise the membership fee. In return, members of the program, which piloted in Ontario, Canada, get a free pair of pants or shorts, free expedited shipping and access to workout classes and special events. The seller of yoga and workout gear is testing a pricier membership loyalty program - and at $128 a year, it’s more than Amazon Prime. Lululemon’s pants used to reveal skin now they reveal status. The perk that sets this program apart: It gives members round-the-clock access to the CVS pharmacist helpline, through which they can speak with a pharmacist about their medications and other healthcare resources.
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