Loyalty in 2-D: Loyalty as an Outcome of Daily Decisions
The second dimension of a successful loyalty program comes from the decisions grocers make on a daily basis, including pricing, promotions and assortment. Creating loyal shoppers requires asking yourself constant questions. Where should you invest in lower prices and where should you personalize prices? What promotions are valuable for a category and which are valuable for your most loyal customers? What items in your assortment have high value and are important for your loyal customers? When answering these questions, always keep your most loyal customers in mind. De-list products that appeal less to those loyal or potentially loyal customers and have more transferability and target your personalized pricing and promotions to the most high-value customers.
Loyalty in 3-D: Loyalty as a Program
The endgame of this process is viewing your loyalty strategy as a multifaceted program that considers everything from your daily decisions to key areas for growth — maximizing the value your program offers customers. This requires keeping a close eye on how your tactics are performing in the real world and constantly tweaking them to enhance the standalone value proposition. This can be done by adjusting your funding levels for the program and the points earned/redeemed ratio, as well as adjusting the hard and soft benefits on offers. It also means focusing more on the customer instead of the product. If your customers don’t see true value in the program, they’ll go somewhere else. That’s twice as true for the next generation of shoppers.
Loyalty has to be earned by consistently satisfying your customers’ needs better than the competition. As you move forward, remember that different generations have different needs, and that there should be a constant focus on meeting the needs of today, while also laying the foundation for shoppers of tomorrow. To do that, shift your focus to new, more customer-centric tactics and prioritize high-potential value areas and categories. It’s a complicated process that requires a lot of work, but for food retailers who make the shift to a holistic, 3-D loyalty approach, the next generation of loyal shoppers is there to be won.