In the Philippines, there are more shopping centers than public parks, libraries, and museums. Malls have become town plazas. This is one of the biggest reasons why brick-and-mortar stores are here to stay. There’s always a place to get a steady source of foot traffic.
Consequently, this means more competition for attention. Global brands that have been defeated by Ecommerce are moving here to take advantage of our mall culture. SM Megamall, for example, has a Fashion Hall - a combination of international clothing brands with casual dining restaurants. Convenience stores lead expansion in local retail market. Apart from Japanese minimart Lawson, there’s Indonesian counterpart Alfamart who is adding 200 more stores this year.
The obvious solution is to focus on customer loyalty. But then again, both the mall and other stores have their own promotions. There’s also the undeniable lure of online shops who can easily spread their discounts on social media.
So how do you keep spoiled Filipino shoppers coming back?
Here are five customer loyalty strategies that your sales, marketing, and operations will love:
Invest in User Experience
Create a frictionless user experience as much as possible. A single yet comprehensive loyalty platform makes it easier to build, implement, and modify a loyalty program, which in turn creates a more nuanced customer experience.
Local churro brand La Lola, for example, made a straightforward rewards system: customers get one stamp for every purchase worth at least Php170. Once they accumulate 4 stamps, they can choose among 8 different rewards. They can also keep track of their stamps via a digital loyalty app.
Behind the scenes: build a rewards system by filling in the necessary information such as value per stamp and cover image for the reward catalog. Provide staff access to the merchant app and give rewards on the spot. Track results in real-time and see transaction history.
By eliminating gaps in both the front-end and back-end, you can focus on strategy and execution. By removing potential points of hesitation, your customers can focus on participation and redemption.
Build profitable relationships with real-time personalization
Personalized marketing focuses on customer behavior and needs, resulting in a 5% increase in customer retention rates which in turn increases profit from 25% up to 95%.
To make sure that you’re providing a relevant loyalty program that’s also profitable you need to:
-Personalize touch points - ensure that your customers get all the information they need to join and continue using your loyalty program
-Use real-time persuasion techniques - create a sense of urgency through updates such as countdown clocks in email and date reminders through push notification
-Use segmentation - target the right audience by sending a notification based on location
-Provide relevant recommendations - analyze buying behavior and build your rewards system around preferences and transaction frequency. Offer value-added services such as booking and reservation features.
Partner with the right vendor to provide you with digital capabilities. Make sure that the platform they offer is easy to use. A customizable mobile app for customers and a merchant app for your staff is a must have.
Maintain transparency in regards to consumer privacy