Loyalty programs – please rise above the points and perks and solve a customer problem

It’s a rant, it’s a plea, it’s really just a matter of longevity for loyalty programs to move beyond benefits and bonuses and solve a customer pain point.

Programs are disappearing into the sea of sameness with all the usual points and perks, bonuses and benefits, birthdays and sales events, tiers and transactional offers.

It’s time to step out of the bland and boring and find a problem to solve.

This will make your program more relevant, more connected to your customer who will respond with more money.

The sum of these is a more profitable and sustainable program.

To prove the point:

Supercheap Auto Club Plus solves a customer problem (thank you)

The customer problem: One of the most frustrating shopping experiences is to purchase an item and then a few days later to find the same item goes on sale. Damn!

It erodes trust and also makes the shopper frustrated, feeling a little stupid (…if only I had waited) and a feeling of ‘rolo’ kicks in ‘reality of losing out’.

The Supercheap Auto VIP Club plus solves this consumer frustration and does it so simply.

 The Club Plus Price Promise

On Monday, you head into your nearest Supercheap Auto store and buy a set of car seat covers for the full price of $50.

On Wednesday, the same car seat covers are in the Supercheap Auto catalogue for $35.

 A credit for $15 is automatically put on your club account. On Saturday, you visit your nearest store and put your $15 credit towards some new floor mats to match your new seat covers!

Make sure you swipe your Club Plus card every time you shop in store, or login to your Club Plus account when shopping online. If you purchase an item and it goes on sale at a better price within 2 weeks of your purchase you will be credited the difference.

You will then have 28 days to spend your Loyalty credits.

It so beautifully elegant, simple, automatic and the cliche of win-win is at its purest.

  • The member has trust in the brand
  • They purchase with peace of mind and without any fear of ‘rolo’
  • They purchase at full price
  • The brand has the return purchase from the credit provided and an incremental spend. There may even be some breakage!

Well done Supercheap Auto Club Plus

Well done Supercheap Auto for solving a customer problem. Also, well done on making it into For Love or Money™2020 top 10 programs ‘doing a very good job’, the only program that I can see is rising above the sea of sameness with points and perks to solve a problem.

If you want to find a customer problem to solve with your program – here are a few thoughts

  1. Find the friction and hassle of interacting with your brand or business
  2. Assess all your customer complaints (in-bound and on social)
  3. Listen to customers who call your customer service
  4. Look outside into the world of consumer anxieties and issues
  5. Ask your customers
  6. Look at the world issues (recycling has become a big part of program propositions)
  7. Lift the focus to causes and community challenges

Loyalty programs are well and truly in our daily lives.

If they are to become more meaningful and desirable to members, profitable and sustainable for business then make it a focus to find a customer problem and solve it with your program proposition.

Have a happy loyalty day!

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