How to teach buyers to spend 2-3 times more: the experience of managing loyalty of the retail chain Elisye





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According to Rosetta Consulting research, loyal customers are 90% more likely to make purchases spending 2-3 times more than non-participants of loyalty programs. At the same time, each new customer costs companies 5-10 times more expensive than retaining an existing one.
It is absolutely logical that the new approach to increase profits is taken precisely by measuring the level of customer loyalty, its qualitative increase and customer retention.

Companies need to collect these indicators in order to understand the progress in achieving key business goals. Modern loyalty programs are focused on measuring customer behavior, purchasing power, purchased goods and services, and the final results expressed in net profit. The implementation of the loyalty program can be divided into three stages: a pilot project launch, during which a small number of Retail Outlets set up a system, train personnel, identify and cope with possible technical issues; implementation in all stores of the chain – fixing the result; support and further work. In February 2018, mLoyalty’s specialists launched a loyalty program pilot for one of the largest grocery store chains in Yekaterinburg, Elisey. The structure includes 30 stores. The pilot project lasted from February to August 2018: what was done and what results were achieved during this time, read below.

 

Main tasks and prerequisites

Elisey supermarket chain is developing rapidly and acknowledges the importance of customer motivation for changing attitudes and economic behavior towards the brand. Elisey, responding to the desire of buyers to choose how to manage the reward, decided to launch a bonus loyalty program. The bonus program is based on bonus rewards equivalent to real money, which are accrued and written off from the loyalty program member’s account when progress is made. For example, bonuses can be accrued for the purchase, and personal discounts are offered on the customer’s birthday.
The mission of Elisey supermarket chain and Eliseyskiy grocery store is to create the best convenience food supermarket chain in Yekaterinburg, to give customers the opportunity to receive satisfaction and positive emotions from each store visit and purchases made.
It is important to focus on how customers feel at the store, analyze each point of contact with the network and identify what affects their purchases. Therefore, when choosing a reward system, mLoyalty system was selected, the analytical unit of which gives a complete picture of customer behavior and preferences.

 

How to make a loyalty program interesting for the buyer

Studies show that the accumulation of bonuses involves the buyer in the “game”. Bonus-based loyalty programs offer wide leeway for promotions, special offers, and personalized discounts. By participating in the Elisey loyalty program, buyers feel their benefits:

• Bonuses are awarded for all purchases;
• Conversion of 10 to 1 (bonuses to money), allows them to quickly accumulate the amount to write off and pay for purchases with  points;
• Personal discounts based on customers preferences make them return to the shop because only the “favorite” store “understands” them.
• Mobile application, convenient chat bot, personal account on the site – the client is given maximum opportunities to interact with the brand, and he can choose the most convenient way for him.

As a result, customer loyalty grows along with profit. For 6 months of the pilot project, 23 million bonuses were accrued to customers of Elisey chain, 13 million bonuses were used (more than 20 thousand checks, in which bonuses were used partially or fully for payment).

 

Proper mechanics, loyalty program settings

The mLoyalty Loyalty Program Platform contains dozens of components with which you can “assemble” the bonus system ideally suited to your goals and the implementation that is convenient for you. The project Elisey used the following components of the mLoyalty platform:

• Integration of CRM. It interacts with different accounting systems, terminals and cash registers, collects customer information in one place.
• Personal account. Customers are provided with a corporate personal account on the site, made in the style of the brand, and it is a channel of communication and informing customers.
• Mobile application. It is one of the most convenient ways of communication, plastic cards are a thing of the past, customers use applications of the brand, to which they are committed, to use bonuses, learn about promotions and news.

Elisey management independently determines the amount of rewards and discounts participating in the program. Thus, achieving maximum efficiency from customer contact with the store.

 

CRM section in mLoyalty – basic conditions and reward system configurations
mLoyalty platform allows you to choose the size and trigger for the accrual and write-off of bonuses across the entire customer base; set up promotions and inform participants about the news and events of the company; conduct a full analysis using pre-configured reports.
The desire to move from plastic cards, as the main customer identifier, to alternative identification methods: by mobile phone number, via mobile application, chatbot, led Elisey to use the White Label component of the mLoyalty platform.
White Label is a ready-made personal account and mobile application, branded in the company’s corporate style. Main functions:

• Fast online registration and authorization of a loyalty program participant (for mobile, fingerprint authentication is possible).
• View balance, history of bonuses and purchases.
• Based on customer behavior, the system offers a view of current promotions online: description, expiration date, events and news. This information is published automatically from CRM, which significantly saves the time of the marketing department, and allows you to deliver an advertising message to the consumer promptly and with reference to events such as the participant’s birthday.
• Management of the bonus program, personal data, including detailed information about customers, and conducting personalized e-mail and SMS mailings based on events in the participant’s life.
• Participation in NPS surveys using a personal account.

 

Function “personal account” of the loyalty program
Mobile application Elisey has additional features:

• My Card feature allows you to pay at the checkout with accumulated points without a plastic card. Client’s mobile displays the barcode of the linked card.
• The client receives personal push-notifications about promotions, news. When accruing-writing off bonus reward reports are automatically received by the client.
• The application finds and displays the nearest addresses of outlets on the coverage map. The client immediately sees the phones, e-mail, working hours of the outlet, contacts and route mapping. Thus, the number of customer interactions and network stores increases.

Informing customers about the functionality of the mobile application
One of the key ways to gauge customer loyalty to Elisey chain store is NPS surveys.
Reference: NPS Loyalty Index (Net Promoter Score) is an index for determining whether a customer is committed to a product or a company (readiness to recommend index), used to assess readiness for re-purchases.
Measuring the NPS loyalty index involves several steps:
1. Consumers are invited to evaluate the question “How likely is it that you would recommend a company / product / brand to your friends / acquaintances / colleagues?” on a 10-point scale, where 0 corresponds to the answer “I will not recommend it in any way”, and 10 “I will definitely recommend.”
2. Based on the estimates obtained, all consumers are divided into 3 groups: 9-10 points – product / brand promoters, 7-8 points – neutral consumers (passives), 0-6 points – critics (detractors).
NPS index calculation:
NPS =% promoters -% detractors

 

Analysis of the effectiveness of the pilot period for Elisey chain store

Key indicators for the pilot project

 

Key Loyalty Program Usage Indicators

 

On August 1, 2018, Elisey retail chain introduced loyalty program to the entire network which includes more than 30 stores!

We thank Elisey team for their cooperation and further desire to develop in the direction of increasing client loyalty.
Loyalty programs pay off in less than six months, allowing business owners to earn more. If you want to know how to do it please leave a request for an individual demonstration of the functionality of the mLoyalty reward system.


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