‘Customer Loyalty’ as a theme was intriguing me since some
time as I am a member of customer loyalty programs (CLP) of a major chunk of
retailers. Shoppers Stop First Citizen, Lifestyle Inner Circle, Pantaloons (now
Payback), Reliance One, Club More, Spencers
Smart rewards and a couple of single brand retailers, hopefully that’s all in
my wallet. Additionally I am subscribed to major online retail brands who pour
me with promotional offers through e-mails. In this mad rush of issuing
membership cards that make my wallet heavier by the month, I am trying to
figure out the real benefits I enjoy due to loyalty.
A quick comparative on the benefits I enjoy:-
Some observations on management of CLP in “Love it” category
- The best experience has been with Pantaloons. It is a hassle- free experience to get your loyalty benefits
- Shoppers Stop has a drawback in asking for fees to sign up for membership. A better option could be to offer this membership above a certain transaction size, like Lifestyle. On the other hand, their regular emails with reward points status is motivating enough for the next shopping trip. They have already crossed 3 million members.
- ‘More’ stores started innovative monthly savings coupons in 2012 for their members. Though fascinating, the problem arises when the items under promotion are not stocked in the store in that particular month and hence, the coupons remain under-utilized. In 2013 I could see some improvement in the inventory levels of promotional items in the Gurgaon store so I am assuming they are already working on it.
I am also a member of single brand retailers like Metro
shoes, Apollo Pharmacy, Marks & Spencer and Meena bazaar (Chandigarh). Meena Bazaar (Chandigarh) gives an additional 5-10%
discount to its members during their annual sale. Rest all have a sloppy
reward point system in which you wait indefinitely to collect points that
seldom reach redemption stage.
It is not just loyalty programs and their management but
also the ultimate loyalty of customers to brands. This would need more thoughts
that can be taken up subsequently. The end here is just to mark the beginning
of loyalty era.
I would love to hear from the readers on your loyalty
experiences as a customer. Please login on Blogpost or put your comment as a
Guest.
Disclaimer: The blog is based on my personal experiences and strictly reflects my individual opinion.
