Learn a few tips from one of the finest loyalty cards around
The UK’s leading chemist, Boots, launched their Advantage Card in 1997. This loyalty card was, and still is, one of the most generous reward programmes, offering four points for every pound spent in store.
One point means one penny, so there's a possibility to rack up some pretty big rewards for regular users. All-in-all, it's a great example of how a loyalty program can deliver a strong ROI and help to create loyal customers.
Boots invested £30 million into the scheme, and has become the third largest reward programme in the country for its efforts. The store claim the loyalty scheme has been a great success, with higher retention levels and more spend in store, increasing overall profits.
Loyalty programmes can be used for a lot more than just making customers happy. You can gain valuable customer insights by tracking their activity and data to improve and personalise your service.
Boots, for example, track their customers’ behaviour using the card to target relevant offers, and even added extra tiers to the programme to drive targeted sales. The Parenting Club, for example, sees parents earn 10 points for every £1 spent on baby products rather than four, whereas the over-60s club offers the same rates for Boots own-brand products.
This not only increases the chances of an in-store purchase, but provides the customer with a better service - and 87% of consumers are more likely to share positive experiences with others!
Boots utilise the customer insights they're able to glean from the card's data in a number of ways. For example, they found that the majority (83%) of their customers are women aged 20-45, which led them to creating bespoke offers for products targeting this demographic. This then led to a better, personalised service for that audience, and increased the likelihood of the audience redeeming the offer due to its relevance.
Boots Loyalty App
Along with their loyalty card, the chemist also launched their Boots My Offers app in 2014, which allows customers to receive personalised offers or extra points, which they can easily load on to their cards instantly to redeem in store.
The reason they introduced the app was due to the fact their customers were beginning to favour an app over paper and cards. Customers can use the app to redeem offers when it suits them, scan products for reviews, and view specially selected deals. This, again, is another way of collecting valuable data and customer insights to further improve the customer experience.
In their own words
Speaking at a British Retail Consortium event in 2014, Ruth Spencer, the company's director of digital and loyalty, had plenty to say about their efforts with the advantage card, and using it to target certain consumers. As Diginomica reports, she said:
The Boots advantage card has been designed from the start so that it drives both loyalty, but absolutely recognises the enormous insight asset that it also provides us. When we developed the scheme we developed those two in parallel...
You don’t want to annoy people and make them think that you don’t understand them and don’t know them... You’ve got to be able to respond to somebody’s complete behaviour.
How do we make sure that we are talking to customers in the right mode at the right time? You have to apply the intelligence and how you use it in the right way.
Boots is a great example of how rewarding customers can create a better service, increasing sales and profits, and providing valuable customer insights to make further improvements.