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Mall Loyalty Program Strategy Example

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How to attract & keep customers

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Mall Loyalty Program Strategy Example

  1. 1. Mall Loyalty Program Strategy How to attract & keep customers (short example)
  2. 2. TOP5 factors of choice 1. Supermarket availability 2. Good set of stores 3. Convenient location 4. Favorable prices 5. Lack of queues
  3. 3. Most selling products 56% 54% 30% 25% 17% 15% 21% 12% 23% 12% 15% 0% 10% 20% 30% 40% 50% 60% Clothing for adults Shoes for adults Gifts Cosmetics and perfumery Household appliances Children's clothing and footwear Foodstuffs Cafés and restaurants Entertainment Domestic services Meeting point
  4. 4. Frequency of visits 28% 24% 20% 12% 10% 5% 1% Every month Several times per month Every 2-3 monthes Every week Every six months and less Several times per week Usually visit the mall in another city
  5. 5. TOP5 factors of dissatisfaction 1. Lack of supermarket 2. Exciting entertainment 3. Complicated navigation 4. Queues 5. Many people
  6. 6. Loyalty Program Targets and Tasks To attract customers Promote Loyalty Program To keep customers Expand set of capabilities at each level To increase the average check & To increase frequency of visits Purchases gamification, involvement of the customer in the process of achieving higher level Growth personalization of Loyalty Program depending on customer loyalty
  7. 7. Best World Practice #1 Starbucks The My Starbucks Reward program offers a wide variety of hard and soft actions users can be rewarded for. Customers in the program can earn “Stars” by paying with their registered cards, participating in product promotions, and completing incentivized actions. Once Stars are earned, they are stored in a customer’s user profile until they are redeemed for drinks, food items, and more. Customers are also offered the chance to move up to Green and Gold levels of the program once they earn a certain amount of stars, with each level opening the door for more customer benefits. Customers can earn Stars for online and offline actions, like engaging with the brand’s mobile app, buying coffee in grocery stores, and even engaging with the brand through their various social channels and public promotions. The more a customer interacts with Starbucks, the more Stars they earn, and the bigger the opportunity for reward becomes. Key Possibilities Welcome level Enjoy Something Special on your Birthday. On your big day enjoy a drink or treat on us, plus a coupon for 15% off a purchase Exclusive Offers Just For You. Be sure to opt-in to get special offers, discounts and exclusive invitations via email or text message. Green Free Refills in the Store. We want you to feel at home. Paying with your registered Starbucks Card or mobile app gets you brewed and iced coffee and tea refills at no charge during your visit at a participating store. Exclusive Offers Just For You. Be sure to opt-in to get special offers, discounts and exclusive invitations via email or text message. Gold Free Drink or Food Reward Every 12 Stars. Earn 12 Stars and we’ll treat you to your favorite drink or food. Personalized Gold Card. Your barista will know you’re somebody special when you place an order. Exclusive Offers Just For You. Be sure to opt-in to get special offers, discounts and exclusive invitations via email or text message.
  8. 8. Best World Practice #2 Bloomingdales Program details: Bloomingdales started their Loyallist program to reward customers for in-store purchases, but this program has grown to reward users for every single dollar they spend. Whether customers purchase goods in-store, online, or at their outlets, they are rewarded with Loyallist points no matter how they pay (cash, credit, store card, etc.). Double, triple, and even quadruple points are offered at different times throughout the year, and the more points a customer earns, the more you get for free (like free shipping and access to Power Points shopping). When a loyalty program member reaches 5,000 points, they receive a $25 Bloomingdale’s gift card, regardless of their status in the program. Talk about generosity in loyalty marketing!
  9. 9. Best World Practice #3 Walgreens The Walgreens brand is moving back to its health-focused beginnings, and part of their “health first” initiative can be seen through their Balance Rewards loyalty program. With the Balance Rewards program, members can earn points by taking care of themselves through filling prescriptions, receiving immunizations, logging points for walking and/or running, tracking weight loss, or participating in physical activities. Once points are earned, they can be redeemed in increments for in-store gift cards up to $50. If that’s not incentive enough to promote a healthier lifestyle, I don’t know what is!
  10. 10. Best World Practice #4 Neiman Marcus The Walgreens brand is moving back to its health-focused beginnings, and part of their “health first” initiative can be seen through their Balance Rewards loyalty program. With the Balance Rewards program, members can earn points by taking care of themselves through filling prescriptions, receiving immunizations, logging points for walking and/or running, tracking weight loss, or participating in physical activities. Once points are earned, they can be redeemed in increments for in-store gift cards up to $50. If that’s not incentive enough to promote a healthier lifestyle, I don’t know what is!
  11. 11. Best World Practice #5 Dubai Mall Welcome to THE LIST, The Dubai Mall's premier loyalty programme. Members of THE LIST can enjoy a broad selection of privileges such as VIP Lounge access, porter service and exclusive event invitations, among others. THE LIST not only assures you access to the most exclusive experiences of The Dubai Mall but also symbolises status and prestige. HOW TO QUALIFY Be on THE LIST and become part of one of the most exclusive loyalty programmes, beginning with the following steps: 1. Present receipts of AED 100,000 spent within an active month at The Lounge reception. 2. Complete the application form 3. Receive THE List membership package which includes: * An exclusive card with member identification number * List of privileges & benefits * Voucher booklets * Rate card for private booking of The Lounge
  12. 12. Loyalty Program Trends In recent years, consumers' interest is shifted from economic purchases to new possibilities
  13. 13. Visitor logs in using tablet at reception and selects gifts, which accumulated enough bonus points Girl on the reception accepts receiving a gifts and gives coupons to receive gifts CRM Customer fills out a questionnaire, confirms spending with a tablet, all the information goes to CRM Customer downloads mobile app and get access to account management: confirmation purchases, receiving gifts, etc. For offline participants For online participants How it works
  14. 14. Financial scheme Purchases summary cost 1 bonus point for each 10$ Gift cost = 40 bonus points
  15. 15. Motivation scheme Levels of Possibilities Economy Free Upload app and register Premium To spend more than $ 3 000 Gold To spend more than $ 6 000 Platinum To spend more than $ 10 000 Brilliant To spend more than $ 100 000 Levels are got forever Possibilities depend on the activity Gifts cost 1-9 bonus points Gifts cost up to 29 bonus points Gifts cost up to 59 bonus points Gifts cost up to 99 bonus points Gifts any cost
  16. 16. What possibilities for each Level Free - free coffee and desserts - free massages and domestic services - discounts in partner stores (up to 3% or $15) - free parking (up to 2 hours per day) Premium In addition to previous level - discount in partner stores (up to 5% or $50) - free parking (up to 4 hours per day) - free dinner in restaurant for two persons at birthday Gold In addition to previous level - discount in partner stores (up to 10% or $100) - free taxi from mall to home one time per month - free car wash one time per month - free dinner in restaurant for four persons at birthday Platinum In addition to previous level - discount in partner stores (up to 20% or $1000) - free taxi from mall to home two times per month - free car wash two times per month - free dinner in restaurant for four persons at birthday - invites to the mall events for two persons - notifications about new collections favorite brands - special conditions for mall credit card Brilliant In addition to previous level - discount in partner stores (up to 30% or $10.000) - mall VIP lounge access - preorder for favorite brands & goods - full free parking & car wash - free taxi from home to mall and back two times per month - free tailoring service - free services of consultant of clothing choice - free child nurse
  17. 17. Gamification Limited knowledge Member does not know how many levels there are in the program and what possibilities they have, but he knows about the existence of a higher level and knows some of its features, but not all. - Free parking Gold Level …something else - discount in partner stores (up to 5% or $50) - free parking (up to 4 hours per day) Premium Level Stimulating activity Participant see how much still needs to make efforts to reach the next level. Also participant can get bonuses by doing some actions. Competitive effect Participant see if somebody has reached next level.
  18. 18. Personalization Personal offers and gifts Identification of needs Personal requests from the customer free level Premium and Gold levels Platinum level Brilliant level
  19. 19. How to get bonuses to make purchases by cash or mall credit card activity in social media to participate in surveys and performance of tasks
  20. 20. How to Promote advertising inside the mall sms sending online advertising cross promotions with partners
  21. 21. Author Alexey Shestakov, Digital ftee00@gmail.com http://www.linkedin.com/pub/alexey-shestakov/35/b51/a07

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