Monthly Archives: September 2024

Top 5 Travel and Hospitality Trends to watch out for in 2025

Posted on by
Reply

With the emergence of a wave of changes driving the travel and hospitality industry like the evolution of ‘traditional leisure travelers’ into ‘blended travelers’ or privacy concerns limiting customer data acquisition, marketers and loyalty managers are needing to revisit their strategies and efforts continually. A customer retention strategy that worked wonders a year ago may not yield the same results it once did. 

Loyalty managers are now tasked to produce tailor-made offerings that align with emerging opportunities, underscoring the importance of customer trends. In the coming sections, we’ll explore a few key travel and hospitality trends you can leverage to foolproof your loyalty efforts for 2025.

Five Travel and Hospitality Trends

1. The Boom in Leisure Travel with the consecutive Decline in Revenge Travel

Revenge travel was one of the key driving forces behind the industry’s upward trajectory for 2 years. Fast forward to 2024, it is seeing signs of fading as it loses its steam. 

Initially driven by the desire to escape the shackles of prolonged lockdowns and travel restrictions, revenge travel seemed like an opportune outlet for travelers seeking freedom and escape. By 2023, the momentum had dwindled, with just 11% of travelers making trips to compensate for missed opportunities during the pandemic.

The United States has also seen a shift from the once exciting ‘revenge travel’ to curbing one’s irresistible urge for spontaneous exploration due to budget constraints attributed to current global economic challenges.

This shift mainstreams ‘meaningful experiences’ rather than merely compensating for lost time. Data from 2023 suggests a rise in travelers looking to visit attractions during their trips, up from 36% in 2022 to 43%, signaling a change in how people plan and prioritize travel activities.

With travelers’ intent changing like seasons, enterprises need to cater to evolving preferences that favor depth, authenticity, and a recalibrated sense of adventure.

2. Expanding Redemption Offerings

A recent report from Skift shows that 42% of GenZ and Millennial respondents want to use points to cover the entire stay and 39% to pay part of the stay. With consumers wanting to have flexibility with their earn and burn interactions, brands are looking to implement a wide range of offerings to nurture this trend. One such strategy is expanding redemption offerings.

This trend can be seen in action with the Marriott Bonvoy and Uber Eats partnership, offering more flexibility and enhanced customer engagement. This approach allows customers to use loyalty points for daily services like food delivery, appealing to GenZs and Millennials who value convenience and experiences over traditional rewards. 

By integrating the offerings into everyday life, they are on top of the minds of the consumers driving both direct bookings and partner spending. By broadening redemption options, Marriott encourages more frequent program engagement and attracts new customers. One can align with shifting consumer values and sustain long-term loyalty program success by fueling the consumers’ desire for flexible rewards.

3. Valuable Business Intelligence Is A Must Have

The last decade has shown the grasp of Artificial Intelligence on customer enablement and retention strategies. If your brand is slacking on tech integrations, you are already losing the race even before it started.

Amadeus, a global IT services enterprise recently conducted a comprehensive survey involving 1,253 technology decision-makers from the travel industry across 10 countries, delving into their plans and motivations for technology investments heading into 2024 and the future. 
The results

  • A projected average technology investment increase of 14% for the upcoming year.
  • An overwhelming 91% of the companies surveyed anticipate moderate to aggressive hikes in their technology spending in 2024.



Amadeus partnered with Microsoft’s Azure OpenAI Service to develop a new chatbot called Amadeus Advisor. This solution will simplify data analysis for hoteliers by facilitating them to query complex data easily and receive insights, speeding up decision-making processes.

The chatbot will enable even non-technical staff to access valuable business intelligence with the chatbot to acquire data like average daily rates or revenue information and apply it across various hotel operations. Such initiatives are the first of many trends one can expect to drive innovation across the travel industry.

4. Revamping Hyper-personalization Strategies

Hyper-personalization has evolved from a competitive differentiator to an essential standard. A Deloitte report noted that 68% of luxury travel advisors indicate their clients are opting for longer vacations at secluded spots like private islands and luxury villas, and are spending more on personalized services.

As a hotelier, you shouldn’t be confined just to the idea of aligning your offerings with the general behaviors, purchasing habits, interests, and nuanced preferences of each guest but also constantly enhance them to stay ahead. As your competitors also leverage hyper-personalization, the need to periodically revamp your tactics becomes ever more critical. For striving hoteliers such as yourself, this means going beyond traditional loyalty strategies.

The emergence of new micro-segments within the market demands a fresh look at what makes your guests tick, bringing a shift from personalized to ‘once-in-a-lifetime experiences.’ This can be harnessed through the power of AI which can place a wealth of customer data at your fingertips. By leveraging zero-party and first-party data, you can build detailed customer profiles and anticipate future trends, ensuring that every aspect of your guest’s journey, from booking to post-stay is seamlessly integrated across all interactions.

By integrating advanced analytics and machine learning, you can further refine your service recommendations and overall guest experience, ensuring every interaction is anticipatory and cohesive. This proactive approach to hyper-personalization will not only set your brand apart but also align with the growing demands of travelers seeking out personalized and memorable experiences.

5. Coalition and Ecosystem Centric Loyalty Could Be The New Norm

Major hotel chains are scaling globally through strategic franchising and management, aiming to tap into key geographical markets. However, most brands still rely on static and outdated loyalty strategies that fail to meet modern consumer expectations. 

Traditional customer retention strategies are losing effectiveness, necessitating enterprises to find innovative approaches to drive loyalty. Despite challenges in mature regions like the US, Australia, and Japan, the loyalty management market is projected to reach over $24 billion by 2029. 

The future of hotel loyalty lies in strategic coalition and ecosystem-centric programs, offering integrated experiences across multiple enterprises. Unlike the coalition loyalty model where one program umbrellas multiple businesses, in loyalty ecosystems, one brand can grow to cover a wide range of brands, for instance, an airline brand could encompass car rentals or insurance services.

Brands are exploring offerings complementary to theirs, thereby building their own ecosystem. Such ecosystems are a powerful driving force when delivering value, exceeding customer expectations.

For instance, Alaska Airlines customers benefit significantly from the Bilt Rewards program for their rent payments. This unique partnership eliminates extra fees typically associated with credit card rent payments. Also, Bilt Rewards members can transfer their points directly into Alaska Airlines’ Mileage Plan miles, enhancing the value of their spending without an annual card fee. This arrangement offers a practical way for renters to accrue travel rewards, which Alaska Airlines highlights as an expansion of their industry leading loyalty offerings, according to Brett Catlin, vice president of loyalty, alliances, and sales.

The above is just an instance of how a program can offer multiple attractive benefits for its valued customers across travel and lifestyle expenses.

Bonus: One Strategic Tweak Could Make A World Of Difference

Pleasing customers isn’t always straightforward; sometimes, minor tweaks can make a whole world of difference to your engagement efforts. Small efforts like a last-minute beach view room upgrade, or a surprise free shuttle service can significantly enhance your customer’s experience.

It’s crucial to discern the meaningful touches from the clutter of perceived enhancements. A disconnect can dilute the impact of your efforts, resulting in customer experiences that are less than optimal.

An enterprise must put efforts toward addressing even the smallest requests or issues. This could mean accommodating a last-minute room change or facilitating an early check-out for a valued guest. A prime example of this proactive approach is seen with United Airlines. They send alerts to passengers about available preferred seats and even reserve these seats up to 12 hours before departure. By integrating such thoughtful features into its service model, United Airlines ensures a memorable and seamless experience for its travelers.

Conclusion

As the travel and hospitality landscape evolves, it becomes clear that it is an ever-changing industry. The decline of revenge travel and the rise of personalized experiences through the strategic use of AI and data highlights a shift towards value-added interactions. 

Businesses must adapt by integrating innovative loyalty strategies and enhancing operational efficiency to meet modern travelers’ demands. Elevate your loyalty approach with Capillary and align with the industry’s latest trends. Connect with our loyalty experts today and transform your customer engagement journey.

Schedule A Call

Beyond CRM: Why Loyalty Programs Should Be Your Business’s Core Strategy

Posted on by
Reply

You can easily get lost in a jungle of technology if you don’t stay focused on why you started a loyalty program.  After all, you start a loyalty program to maintain relationships with your best customers, learn more about them, and perhaps even provide them with a higher level of service, or give them perks for their repeat business.

 

However, with cheaper computing power and crazy amounts of inexpensive digital storage, it can become easy to begin treating your loyalty platform like a general customer relationship management (CRM) platform and forget why you even started a loyalty program. 

 

CRM vs Loyalty Dilemma

 

There is certainly a cross-over between general CRM and loyalty.  You can set up automated messages, conduct promotions, and send huge volumes of emails, SMS, and push notifications via a “set it and forget it” system of rules and offers.  But, with loyalty, you want to go beyond the “one and done” type of spiff and get customers or even better, members, connected to you transactionally and emotionally so they think of you first.

 

How to make customer loyalty your business’s holy grail 

 

Building Customer Relationships with Loyalty Programs

 

Connecting with customers emotionally and even transactionally goes beyond reaching out to them daily with a barrage of messages.  This is strategically collecting relevant data in a program that attracts your company’s main target market and gets them to enroll with you.  Then, the journey continues by learning your member’s likes/dislikes from a product or service perspective and providing experiences that give them something they can’t get from your competitors.

 

Once this relationship is established, growing your connection includes relevant messaging and can sometimes include not speaking to them.  As we all know, in every relationship, at times, there is a need for some space.  And then there is the understanding of when to re-connect. 

 

Making Loyalty Your Organization’s DNA

 

The other differentiator with a good loyalty program in addition to good data and timely communication is driving the concept throughout the entire organization.  Unlike a promotion that has a start and end date, a loyalty program should become a way of doing business.  It should be a part of an organization’s DNA, from the board room to the showroom, retail floor, or wherever your associates meet with your customers. 

 

There should be a uniform tone and genuine appreciation for your customers/members at every connection point with your company.  Make no mistake, this is hard work.  The organization’s view and love for its customers should be apparent and consistent in strategy meetings, planning sessions, goal setting, customer service, emails, phone calls, text messages, and face-to-face interactions. 

 

In the best of all worlds, a customer/member should receive the same positive experience from every touch point or communication within your organization.  This is hard but worth it.  When your organization sees repeat business that starts happening organically because you have proven yourself worthy of repeat and consistent purchases, you’ll wonder why you didn’t do this sooner. 

 

Balancing Delight with Purpose

 

So, where is this going?  Many organizations start with a genuine concept of initiating a loyalty program to surprise and delight their best customers.  However, once the platform is in place, the lure of quick hits via promotion after promotion and email after email can quickly reduce those altruistic goals into the offer of the weak, I mean week. 

 

Be strong.  Learn how to craft a journey for your members that is mutually beneficial for you and for them.  This is done by knowing what will make your customers want to enroll with you, and then collecting only the relevant data that enables you to help them.  Judiciously use this data to enhance shopping patterns, break down barriers to purchase, and insert some fun along the way.  Be careful not to take advantage of your members’ willingness to join you and share their information with you.  

 

It is easy to start pulling levers in your platform and sending out “one-offs” buy the truckload.  Resist.  Loyalty is a marathon, not a sprint.  Craft your journey.  Know where you want to take your members.  Help them do more business with you.  Listen to them.  Adapt your offerings based on their feedback.  As their appreciation grows, so will their purchases…and your bottom line.  

 

Over time, then, you’ll find your organization moving out of the technology jungle to the greener pastures of profit and prosperity.  You’ll experience growth and opportunity for your employees and a marketplace where customers can’t get enough of you.  Yes, loyalty can definitely get you there, if you keep in mind why you wanted loyal customers in the first place.

 

Elevate your loyalty strategy with Capillary’s cutting-edge customer loyalty software. Create personalized communications and make informed decisions with our powerful predictive analytics. Experience the difference – book your demo today!

 

Crafting Exclusive Experiences: 5 Ways Luxury Retail Can Innovate Customer Loyalty

Posted on by
Reply

In luxury retail, customers aren’t drawn by discounts or deals—they seek the unique experiences only your brand can offer. Price tags don’t sway them; they’re moved by the emotions and moments you craft for them. This is the true reason a customer chooses one luxury brand over another. But what steps can these brands take to craft these unforgettable experiences?

 

The key lies in reimagining the VIP customer journey – it should be a tailored, unforgettable adventure that captivates and delights at every turn. With digital advancements reshaping expectations, luxury retailers have a golden opportunity to blend cutting-edge technology with high-touch, personalized service, creating a unique blend that today’s discerning customers crave.

 

As Angela Ahrendts, the former SVP of Retail at Apple and CEO of Burberry, wisely observed, “In the age of digital, the physical experience is more important than ever.” This sentiment captures the essence of today’s luxury retail environment, where the fusion of personalized digital strategies and unique physical experiences is key to fostering deeper connections with VIP customers.

 

Here’s how luxury retailers can revolutionize the VIP customer experience and foster deep, lasting connections that go far beyond the boundaries of traditional loyalty programs. Let’s explore some innovative customer loyalty solutions to elevate customer relationships to the next level.

 

1. “Inner Circle” for Exclusivity

 

Luxury retail

Creating an exclusive membership for your top customers can elevate their relationship with your brand beyond the transactional. By developing an invitation-only program based on annual spending, you cultivate a sense of prestige and importance, making these customers feel uniquely valued. This isn’t just about rewarding high spenders—it’s about recognizing and fostering deeper emotional loyalty through exclusivity and personalized attention.

 

Take Burberry, for instance. By offering their VIP customers exclusive pre-launch access to new collections, Burberry doesn’t just boost sales; they give their customers a feeling of exclusivity. This approach has led to higher customer retention and increased average order values, proving that when customers feel like insiders, their loyalty to the brand grows significantly.

 

2. Curating Personalized Services for Customers

 

Think of luxury more as a personalized service that makes each customer feel like they are the most important person in the room. One innovative approach in luxury retail to this is deploying “Home Style Advisors” for VIP customers. These advisors go beyond the traditional in-store experience, offering personalized styling advice right at the customer’s doorstep.

 

To make this work, brands need a robust CRM system to track individual preferences and past purchases. When done right, this approach can lead to remarkable results. Nordstrom’s “Style Board” app is a prime example, where personalized interaction between customers and stylists led to a 6% increase in average order value. It’s clear that when luxury brands provide bespoke service, customers are more likely to feel connected and valued, leading to greater loyalty and higher spending.

 

3. Unforgettable Experiences to Drive Emotional Engagement

 

As mentioned earlier, when it comes to luxury retail, Experiences often leave a lasting impression, helping customers create memories. Creating a rewards program that offers exclusive events and experiences can deepen this emotional connection. Imagine private fashion shows, intimate dinners with designers, or behind-the-scenes access to the creation of a luxury item. These experiences not only reward customers but also build a narrative that customers can associate with the brand.

 

French luxury brand Hermès has mastered this with their “Hermès Beyond the Walls” events. It is a unique and immersive digital experience that offers a highly personalized and interactive journey, reflecting the luxury and exclusivity synonymous with the Hermès brand. The project uses cutting-edge technology, including augmented reality (AR) and virtual reality (VR), to allow customers to explore the Hermès world in a visually rich and engaging manner.

 

Events like these strengthen customer loyalty and keep the brand at the forefront of customers’ minds, showing that memorable experiences are just as valuable, if not more so, than the products themselves.

 

4. Making Every Interaction Count with Data-Driven Personalization

Luxury Retail Loyalty

In today’s data-rich world, understanding your customer on a deeper level is the way forward. By leveraging advanced CRM systems, luxury retail brands can gather detailed insights into customer behaviors and preferences, allowing for hyper-personalized marketing and service strategies. This data can power AI-driven recommendations and tailor-made communications that feel genuinely personal.

 

Sephora’s Beauty Insider program showcases the power of this approach. By using customer data to provide personalized recommendations, Sephora has seen a 20% increase in purchase frequency among members. This not only boosts sales but also makes each customer feel uniquely understood, fostering a deeper connection to the brand.

 

5. Reinventing the In-Store Experience

 

In-store experiences remain a crucial touchpoint for luxury brands, especially when they are seamlessly integrated with digital engagement. Imagine walking into a store where the VIP status of your customer is instantly recognized, and every element of the shopping experience is tailored to their preferences. This kind of integration can elevate the shopping experience, making it feel both personal and exclusive.

 

Restoration Hardware’s RH Gallery concept illustrates this beautifully. With features like rooftop restaurants and wine vaults, they have turned their stores into destinations, increasing foot traffic and boosting transaction values. It’s a powerful reminder that when the in-store experience is thoughtfully curated, it becomes a vital part of a brand’s loyalty strategy, driving both engagement and sales.

 

Conclusion

 

The future of luxury retail lies in crafting deeply personalized and memorable experiences that go beyond traditional loyalty programs. By leveraging data, creating exclusive opportunities, and blending digital with physical experiences, luxury brands can foster deeper connections with their VIP customers.

 

Capillary’s advanced customer loyalty software can help brands implement these strategies, driving engagement and increasing customer lifetime value. In a competitive market, these strategies will be crucial for brands looking to position themselves as leaders in experiential luxury retail.

 

By focusing on what truly matters to their most valuable customers, luxury retailers can ensure that every interaction is meaningful, every experience is memorable, and every customer feels like a VIP. Make your luxury retail brand the go-to choice for your customers with Capillary. Book a demo with us now. 

5 Must Incorporate Lunar New Year Marketing Strategies

Posted on by
Reply

Roaring high is the festive spirit of people celebrating the Lunar New Year (aka the Chinese New Year) across the world. After all this year is all about The Year of the Tiger. Knowing that the past few years have been tumultuous, The Year of Tiger reminds people to emerge stronger than before, come what may. Every year, the Lunar New Year festivity begins with the first new moon and ends on the first full moon of the lunar calendar which is why the holidays last for days and even weeks, especially in South East Asia regions like China, Hong Kong, Singapore, Malaysia, South Korea, Taiwan, and Vietnam.

 

Retailers across the globe brace themselves for this festive bonanza and gear up for a positive start to the year with some grand in-store décor and incredible promotion campaigns. As with most holiday seasons across the globe, the Chinese New Year too is a huge opportunity for retailers to sell their goods and services using powerful marketing strategies. As we step into this auspicious period, let’s take a look at how some of the popular brands are celebrating the Chinese New Year and syncing it with innovative Lunar New Year strategies across the retail landscape.

5 Lunar New Year Marketing Strategies

1. Drive engagement with emotional loyalty

 

lunar new year marketing

 

While incorporating Lunar New Year marketing campaigns to drive higher engagement, brands must also work on emotionally connecting with the people. The traditional Chinese New Year is high on people’s emotions. A reason why launching emotional loyalty programs specifically around this time of the year could be one of the strongest levers – True Loyalty is Earned not Bought. Place your bets on redeemers who often tend to shop more if emotionally engaged at the right time. Knowing that the Chinese New Year is also about gifting besides regular shopping, an effectively designed emotional loyalty program would eventually yield higher revenue and foster brand loyalty. Here is a quick guide to emotional loyalty programs.

 

2. Empower your offline marketing promotions with festive contests

 

Besides store décor resonating with the Chinese New Year celebration, special in-store promotions must be promoted a week or two leading up to the Lunar New Year. It is thus very important for a brand to time its offline promotions. Introducing QR codes in your store alleys for surprise offers or inviting your loyal customers for an advance preview of a new festive collection might just do the trick. Many brands also plan lucky draw contests with grand prizes to build enthusiasm around this time of the year.

 

3. Livestreaming in the Digital Era

 

 

Undoubtedly, live streaming has emerged as one of the most influential sales channels in China, witnessing a dramatic rise in popularity since 2020. Prestigious luxury brands are increasingly leveraging this platform, with giants from L’Oreal to Louis Vuitton showcasing their products in unprecedented ways on leading e-commerce sites across the region, integrating livestreaming into their broader brand marketing strategies. But is its impact confined to China alone? Not really! The live streaming industry is expected to hit $256.56 by 2032.

4. Building at-home surprises with experiential loyalty programs

 

The tradition of the Lunar New Year has always been about family. People come home and take off during this period to celebrate it with their families. Brands thus need to create similar experiences to sustain excitement by introducing campaigns like a food brand sharing online recipes, wellness brands opting for online fitness programs, or engaging audiences with gamified experiences like seasonal quizzes, mystery offers, etc. The traditional dine-at-home experience with loved ones must be leveraged by brands by building experiential strategies that focus on creating these experiences, even at home.

 

5. Multifold your social media interaction

 

lunar new year campaign

 

Brands’ presence on social media is indispensable. Hence, brands need to be aggressively active across regular as well as regional social media channels like WeChat, Weibo, Instagram, Facebook, Twitter, etc. during this festive time. A Lunar New Year campaign idea could be creating videos on your app or website to launch a new product around the Lunar New Year which would definitely grab more eyeballs. In a digital-first world, it is imperative for brands to connect with customers on the right channel to reap maximum benefits.

 

With the Lunar New Year approaching soon, brands and businesses are scaling up to capitalize on this opportunity. You don’t always have to break the bank to gain benefits from the festive season, implementing a Lunar New Year campaign facilitated by seasoned experts will enable your enterprise to achieve all of this with minimum cost. Capillary’s comprehensive Loyalty Solutions will help you achieve just that. Book a demo with our Loyalty Experts to know more.


Schedule A Call

Check out our other Related Blogs

Emotional Loyalty : The Key to Retaining Connected Customers

Future-Proof Your Loyalty Program With These 8 Customer Loyalty Strategies

The Science of Emotional Loyalty and Why it Matters for Brands

 

Grocery Loyalty: 8 Strategies To Revamp Your Loyalty Program

Posted on by
Reply

On a scale of 1 to 10, if coffee scores a 9 or 10 when it comes to commanding customer loyalty, daily essentials like groceries fall on the shallow end of the scale.

 

Unsurprisingly, 83% of customers visit 4 to 9 grocery stores in a year, and only 1% are loyal to a single chain.

 

While discounts and offers may sway customers in favor of a specific store, low margins on groceries make it difficult for hypermarket chains to offer these.

 

Adding to grocery chains’ woes is competition from niche grocers such as those offering organic products, and online hyperlocal players like Fresh Direct, Local Harvest, and ShopFoodEx.

 

Still, all is not lost for the ubiquitous grocery stores, as 50% of households still consider the supermarket as a primary channel for shopping for groceries.

 

Through targeted and personalized loyalty programs, grocery stores and hypermarkets can nurture customer loyalty and capture a large share of the grocery shopping pie.

 

In this article, we’ll delve into how loyalty programs make a positive impact on grocery sales, along with some best practices and strategies for grocery chains to design an effective loyalty program.

 

Loyalty Program as a Differentiator: Why You Need One for Your Grocery Chain

Grocery Loyalty programs allow stores to reel in regular customers with well-designed incentives and personalized offers. The ultimate goal? To increase the average basket size and encourage repeat purchases.

 

For instance, take a look at the array of incentives the global supermarket chain  Walmart offers to build customer loyalty: store pickup of online grocery orders, automated in-store shopping experiences, and unlimited delivery for paid members.

 

In the coming section, we’ll explore nine grocery loyalty strategies to build a powerful loyalty program and the tools that can help you get there.

 

8 Strategies To Revamp Your Grocery Loyalty Program

Grocery Loyalty

While massive tech-driven retailers Walmart and Amazon can afford to offer deep discounts and free deliveries,  traditional grocery chains can compete for customer wallet share by offering personalized, value-focused experiences.

 

The best customer loyalty programs harness customer data from multiple channels and store locations, to offer meaningful rewards and incentives. They make customers feel valued and special.

 

A good grocery loyalty program must fulfill customer needs, improve their shopping experience, offer appealing rewards, and be consistent with their expectations.

 

Let’s take a look at 8 strategies to nurture grocery loyalty:

1. Develop a deeper understanding of customer behavior

This is the cornerstone of a successful grocery and hypermarket loyalty program. The subsequent strategies are dependent on how well retailers can achieve this.

 

What does an in-depth understanding of customers look like in practice? It means getting a granular understanding of customers’ shopping habits, preferences, and shopping goals.

  • Specifically, you want to track the following types of customer data
  • Demographics (single, family, millennial, couple)
  • Product categories frequently bought (organic, sugar-free, gourmet, etc.)
    Shopping Behaviour (average basket size, preferred time of day for shopping, which days of the week they shop, etc.)

 

One of the major challenges for grocery and hypermarkets in deploying a great loyalty program is the lack of technical know-how to capture customer data across various channels and use it effectively to offer personalized experiences.

 

The best way to understand and analyze customer data is to use a Customer Data Platform or CDP. This gives you a 360-degree view of the customer, including in-store shopping, online experiences, and information from third-party platforms such as payment providers, social media networks, and other marketing channels.

 

2. Deliver 1:1 personalization

Once you have enough data about your customers, it’s time to sweep them off their feet with hyper-personalized experiences. Personalization includes choosing the right channel, time, place, and offer for each customer.

 

While personalization is a key ingredient to ensure the success of a loyalty program, only 2 in 10 customers are satisfied with the levels of personalization in existing loyalty programs, across various industries.

 

These are some key areas where grocery chains can harness personalization:

  • Dynamic in-store vouchering  

A leading hypermarket chain saw an $8.8 million increase in sales using this strategy. The idea is to use customers’ in-store shopping behavior to up-sell, cross-sell, and increase purchase values using real-time coupons with limited validity.

 

For example, customers who purchase almond flour may be offered coupons to buy other keto-friendly options such as sugar-free chocolate and protein bars. The key here identifying the propensity to purchase (customer segment vs product category).

 

  • Targeted marketing

Identify the channels customers are most likely to convert on, and send exclusive promotions on those channels. Unfortunately, most grocery retailers still rely on traditional engagement channels like SMS for delivering promotional or loyalty-related communications.

 

  • Data-driven rewards & incentives 

Use customer loyalty data such as points, loyalty tier, and transactions, to send targeted promotions. For example, offer additional loyalty points to members who shop on the weekend for fresh fruits, or those who participate in an upcoming sale.

 

  • Automated cart curation

This is applicable if you have a digital presence. Use customer’s transaction data to automatically curate their online shopping cart. This can be a time-saver for customers, as most people buy the same set of groceries each month. Offer personalized recommendations for out-of-stock items to wow customers even more.

 

  • Trigger event-based offers 

Who doesn’t love birthday greetings and goodies from their favorite brands?! Send special offers and discounts to your customers on special occasions like birthdays and anniversaries to make their day even more special and increase their spending with your store.

 

  • Use gamification & event-based rewards

Gamification is the use of game mechanics in non-game scenarios. In loyalty programs, that translates to offering loyalty levels and tiers, unlocking options, progress feedback, goal setting, and challenges.

 

According to a report, gamification almost doubles the engagement of loyalty programs. A whopping 8 in 10 customers interact with game mechanics when they are present in loyalty programs, but only half of the loyalty programs have any such features.

 

The Starbucks loyalty program is a good example for stores to drive grocery loyalty. It has different tiers based on spend, member status, and rewards such as purchasing a certain number of items per week to achieve bonus stars.

 

Grocery stores can gamify loyalty programs in two ways. First, they can offer points based on events such as social media posts, QR code scans, and reviews and feedback, etc. Second, they can use loyalty program platforms like Capillary’s Loyalty+ to introduce gamification elements such as “pick and win, “spin the wheel”, and “scratch and win” within their loyalty program.

 

3. Deploy Product/SKU/Category-based Promotions

Promotions on specific brands and categories are a good way to leverage the existing brand or product affinity within a customer segment.

For instance, you can offer a specific customer segment a 10% discount on PepsiCo beverages for a limited time. Again, the success rate of these promotions depends on the delivery time, channel, and of course the target segment to get the best results.

 

4. Extend your rewards catalog

Partnering with other brands to extend your rewards catalog is an excellent way to make your incentives more appealing, and tap into your partner’s customer base.

 

A common example of this is the fuel points many grocery stores like the Smith’s food and drug store offer.

 

Here’s how it works: shoppers earn fuel points every time they shop for groceries, prescription drugs, and gift cards. These can be redeemed at participating fuel centers.

 

There’s clearly an appetite for coalition programs as 60% of customers share they’re interested in such programs.  Grocery stores can partner with food brands, drug stores, and other services such as salons and spas, to make their loyalty points more valuable.

 

5. Nurture behavioral loyalty

The best way to make customer loyalty a habit is to reward customer behavior.

 

Here are some customer actions for  which you can provide added incentives:

  • Check-in: Offer rewards for customers when they check-in to your mobile app for 7 consecutive days. This will ensure they open your app regularly.
  • Refer a friend: Provide loyalty points and special discounts to customers who refer a friend or family member to your store or app.
  • Shares or likes: This is a simple yet effective way to increase social media buzz about your brand.
  • QR code scans: This is a great way to track when customers enter your store and get them to participate in in-store events and promotions.
  • Visiting a store: Similar to rewarding app check-ins, you can also provide added offers and points to those who visit your store at least twice a week.

6. Provide real-time gratification

This means using geo-location and app-sign-in data to personalize promotions as well as generate real-time coupons for customers during checkout.

 

As of 2024, 67% of consumers have made purchasing decisions solely based on a coupon discount. What’s more, Coupon codes enable shoppers to save an average of $1,465 per year.

 

Here are three ways to provide instant gratification to your customers when they visit your store:

  • Dynamic vouchering: As discussed earlier, this is a great way to promote related items to shoppers when they’re at your store.
  • QR codes: Provide real-time discounts and offers to customers who scan QR codes at your store, and increase the average basket size.
  • Beacon engagement: Each time a consumer comes in the vicinity of your stores, provide them with dynamic offers to increase footfall in your stores.

7. Connect in-store & online customer interactions

We’ve seen the massive shift in consumer’s shopping habits from brick and mortar stores to online websites and apps. What hasn’t changed though, is consumer’s expectations of seamless experiences, both online and offline.

 

For grocery and hypermarket chains, it pays to adopt an omnichannel approach to cater to changing consumer preferences and capture customer data at various crucial points.

 

What should you look for when setting up an online presence for your grocery store? The ability to host your store on the web, and manage inventory and orders, promotion and marketing, payments and logistics, and SEO.

 

Additionally, you’ll also need the option to collect and harness customer data to integrate online and offline experiences.

 

For example, when an in-store customer logs into your online store for the first time, you can provide them with coupons and vouchers for products related to their last purchase at your store.

 

8. Match the right message to the right channels

Imagine promoting pipes and valves for industrial use on TikTok. Or bracelets for teens on LinkedIn.

 

Each social and communication channel has its own target audience and key demographic. Moreover, each of your customers likely spends more time on one platform as compared to others.

 

Communications around your grocery loyalty program and specific offers/promotions should be communicated by recognizing the best channels of promotion for each customer.

 

Channels such as Instagram, Facebook, Twitter, are likely popular with a younger demographic, while WhatsApp may be used to engage older customers. Grocery stores can use the platform to send information about loyalty points, point expiry information, collect feedback, and send post transaction information to customers.

 

Wrapping Up

To build an outstanding grocery loyalty program, it’s essential to step outside the traditional frameworks. The grocery and hypermarket sector, while challenging, presents numerous opportunities for delivering a superior loyalty experience.
 
Capillary’s robust Loyalty+ solutions empower retailers to offer unique benefits and personalized rewards, helping them to attract shoppers back to their stores more frequently and differentiate them in an increasingly competitive space. Get in touch with our Loyalty Experts to explore how you can benefit from partnering with Capillary.

 

Schedule A Call

 

FAQs

What are the key strategies for grocery loyalty programs?

Key strategies include offering personalized discounts, implementing tiered reward systems, using mobile apps for convenient access, and providing exclusive member benefits. Engaging customers through regular communication and special promotions is also crucial.

How do loyalty programs benefit grocery hypermarkets?

Loyalty programs benefit grocery hypermarkets by increasing customer retention, encouraging repeat purchases, and enhancing customer satisfaction. They also provide valuable customer data that can be used to tailor marketing efforts and improve overall business performance.

What are some successful grocery loyalty programs?

Successful programs include Tesco Clubcard, Kroger Plus, and Walmart Rewards. These programs offer discounts, personalized offers, and points-based rewards to keep customers engaged and loyal.

How can grocery hypermarkets measure the success of their loyalty programs?

Success can be measured through membership growth, purchase frequency, average transaction value, and customer feedback. Analyzing these metrics helps understand the program’s impact and areas for improvement.

What challenges do grocery hypermarkets face with loyalty programs?

Challenges include maintaining customer engagement, managing program costs, and analyzing customer data. Ensuring a seamless and rewarding customer experience across all touchpoints is also a significant challenge.

Related Blog Posts

5 Grocery Loyalty Programs from APAC and MEA With Winning Loyalty Strategies

How Dark Stores are Revolutionizing Grocery eCommerce

Grocery Retail Trends in the UAE

 

Maximizing Multi-Brand Loyalty: Strategies for Enterprise Brands

Posted on by
Reply

Imagine a customer loyalty program where every interaction—whether it’s a shopping spree, a hotel stay, or a gourmet dining experience—adds value to your customer’s rewards balance, no matter which brand they engage with. This is the transformative power of a multi-brand loyalty program.

 

However, implementing a multi-brand loyalty program isn’t a one-size-fits-all solution. While there are many ways to design and execute these programs, it’s crucial for enterprises to choose a strategy that aligns with their unique business goals and customer preferences, rather than relying on a generic, cookie-cutter approach.

 

In this blog, we’ll dive into how you can unlock the full potential of multi-brand loyalty programs to deliver exceptional customer experiences. We’ll explore the key benefits, examine practical strategies, and showcase real-world examples that demonstrate how leading brands are leveraging this approach to achieve remarkable results.

 

What is a Multi-Brand Loyalty Program?

 

A multi-brand loyalty program is an integrated loyalty system that allows customers to engage with multiple brands within a conglomerate or strategic partnership. Unlike single-brand programs, these initiatives provide customers with a broader spectrum of rewards, experiences, and opportunities by linking several brands together under a unified program.

 

The key to a successful multi-brand loyalty program lies in its ability to offer a more diversified and enriched customer experience. Customers can interact with a variety of brands, accessing a wider range of benefits that cater to their diverse needs and preferences. This approach not only increases customer engagement across multiple brands but also helps companies cross-sell, up-sell, and deepen customer relationships across their entire portfolio.

 

Key Benefits of Multi-Brand Loyalty Programs

 

 

1. Cross-Brand Flexibility

 

The ability to earn and redeem points across multiple brands provides customers with unparalleled flexibility, greatly enhancing their overall experience. For conglomerates, this cross-brand interaction increases the likelihood of cross-selling, upselling opportunities, and even cross-promotions to drive overall revenue and deepen customer relationships across the brand spectrum.

 

2. Deepen Existing Customer Profiles

 

To create multi-brand engagement, loyalty programs often use shared customer data to create highly personalized experiences, meeting the growing expectations of today’s consumers. By analyzing data across various touchpoints and brands, companies gain a deeper understanding of customer preferences and behaviors. This allows them to craft tailored offers, recommendations, and communications that resonate more effectively. For instance, a customer who regularly shops at a high-end clothing brand might receive exclusive offers for luxury hotels or premium dining experiences that match their preferences.

 

 

3. Better Customer Experiences

 

By offering more options and better rewards, multi-brand loyalty programs greatly enhance perceived value for customers. With access to exclusive experiences, higher-value discounts, and special events, these programs provide layers of value that single-brand programs often can’t match. This increased value boosts customer satisfaction and loyalty, encouraging customers to stay within the program’s ecosystem and consistently choose the associated brands over competitors.

 

Picking the Right Strategies for Multi-Brand Loyalty Success: Capillary’s Approach

 

 

  • Maintaining a Unified Brand Experience Across Geographies

 

In today’s global marketplace, maintaining a consistent loyalty program structure across different regions is essential for conglomerates. This ensures that customers experience the same brand feel, structure, and benefits, no matter where they are located. Disparities in branding and program execution can lead to confusion, eroding customer trust and loyalty.

 

Take ASICS, a renowned sports brand with a presence across the globe. In the Philippines, ASICS operates under the conglomerate SONAK Group, with its loyalty program managed by Capillary. While ASICS has its own loyalty program across several regions, we ensured that ASICS’s loyalty program under the SONAK Group maintained the same structure, branding, and customer experience as in other countries. This consistency fosters a seamless brand experience, reinforcing customer loyalty regardless of geographical differences.

 

  • Tailored Rewards for Distinct Brand Perceptions

 

A general rewards structure for most multi-brand loyalty programs has been the redemption of rewards across all the brands under the conglomerate. However, based on the brand perceptions and status quo, this might not always work.

 

Aditya Birla Fashion Retail Limited (ABFRL) exemplifies how to navigate this challenge. Their portfolio includes brands like Van Heusen and Peter England, each with a distinct market positioning. Offering Van Heusen’s premium customers the ability to redeem rewards across less premium brands like Peter England could diminish the perceived value of their loyalty. Instead, ABFRL strategically uses customer data to send tailored promotions for its other brands, ensuring that while cross-brand engagement is encouraged, it does not undermine the perceived status of any brand. This approach respects customer sentiment and maintains the exclusivity that premium customers expect.

 

Aditya Birla Fashion Retail Limited (ABFRL) exemplifies how to navigate this challenge. Their portfolio includes brands like Van Heusen and Peter England, each with a distinct market positioning. Offering Van Heusen’s premium customers the ability to redeem rewards across less premium brands like Peter England could diminish the perceived value of their loyalty. Instead, ABFRL strategically uses customer data to send tailored promotions for its other brands, ensuring that while cross-brand engagement is encouraged, it does not undermine the perceived status of any brand. This approach respects customer sentiment and maintains the exclusivity that premium customers expect.

 

  • Omnichannel Engagement Through a Super App

 

For conglomerates with diverse brands spanning multiple verticals, a super app can serve as a powerful tool for omnichannel engagement. A super app not only facilitates cross-brand reward redemption but also simplifies the tracking of points, making the entire loyalty experience more seamless and integrated for the customer. In fact, super apps are gaining a lot of popularity among conglomerates and enterprises, especially in the APAC region.

 

 

 

Tata Neu by Tata Digital is a prime example. This super app allows customers to redeem rewards across various Tata brands, from retail to hospitality, while offering a unified platform for managing loyalty points. Such an integrated approach enhances customer engagement by providing a holistic brand experience under one digital roof.

 

  • Starting Small with Microsites

 

While super apps make sense for well-established brands with diverse brands under their umbrella, not every multi-brand loyalty program requires a fully-fledged app from the outset. For conglomerates just beginning their loyalty journey, microsites offer a more flexible and cost-effective option.

 

For instance, the SONAK Group, which focuses on sportswear and athleisure products in the Philippines, recently launched its loyalty program with Capillary’s loyalty program software. Since the program is initially limited to two of their brands, we started with microsites rather than a comprehensive app. Microsites allow the SONAK Group to test and refine their loyalty strategies without the significant investment and time required to develop an app. This phased approach enables them to build customer engagement gradually while keeping the door open for future expansion into a more robust digital platform.

 

Conclusion

Implementing a multi-brand loyalty program is a game-changer for any enterprise, but finding the right fit for your unique needs can be a challenge. At Capillary Technologies, we’re here to make it easy.

 

We’ve worked with some of the biggest names in the industry, helping them create tailored, successful loyalty programs that stand out and drive real engagement. Our innovative solutions have earned us awards and accolades for excellence in loyalty program design.

 

Book a demo with us, and let’s explore together how Capillary’s loyalty program software can craft a multi-brand loyalty program that perfectly aligns with your business goals and delights your customers.

Erajaya Loyalty Program: Redefining Retail in Indonesia with Era Club

Posted on by
Reply

A market leader in omnichannel smart retail, PT Erajaya Swasembada Tbk. (Erajaya) operates an extensive network of over 1,200 outlets across Indonesia, supported by 87 distribution centers and 65,000+ third-party billed outlets. Specializing in mobile telecommunication devices, including smartphones, tablets, SIM cards, and accessories, Erajaya also provides value-added services such as mobile phone protection plans and handset leasing services.

 
As one of Indonesia’s most prominent lifestyle retailers, Erajaya has set a benchmark in e-commerce success, driven by its unwavering focus on digital transformation and customer loyalty solutions. With the rapid rise of the Indonesian digital economy, projected to reach $77 billion by 2025 (Google, Temasek, Bain & Company), Erajaya has continuously leveraged innovative strategies to build lasting relationships with its customers.

 
To consolidate its diverse customer base under a single framework, Erajaya launched the Eraclub loyalty program. This comprehensive membership platform offers exclusive tiers of rewards and benefits, fostering deeper engagement with returning buyers. Through Era Club, Erajaya has successfully enhanced customer loyalty by personalizing communications, driving repeat purchases, and ensuring sustained retention in a highly competitive retail landscape.

 

Erajaya Loyalty Program: Building Online Traction with Omnichannel Communication in Challenging Times

One key challenge that Erajaya wished to overcome with the introduction of Eraclub was essentially the massive reduction in store footfall after the onset of the pandemic. It needed to also differentiate itself as a key lifestyle retailer that cares about connecting with consumers even better during a time of crisis. Thus, Erajaya entirely reinvented the wheel with the introduction of a club-based program that offered several price point benefits (let’s say Erajaya loyalty benefits!) along with a host of personalized discounts, gift cards, introductory offers, and vouchers to consumers belonging to varied income groups.

 
RCH and purchase history data collected at a single source of truth, the brand orchestrated a deep customer experience strategy that meant partnering with a leading technology provider. This is where Capillary Technologies stepped in. Together, they lay down the foundation of Eraclub’s advanced communication that relies heavily on nurturing a long-term relationship with consumers over short-term profits. Eraclub (Erajaya’s loyalty program for Indonesian customers) was established as the Erajaya Group loyalty coalition between all the different business verticals of the group. It is a program for omnichannel messaging across online and offline touchpoints that ensure that points are earned and redeemed across.

 

Eraclub: Deploying an Analytics-Driven Partnership with Capillary Technologies

Erajaya loyalty program

 
Capillary Technologies helped set up the AI-powered customer engagement platform that was the very basis of Eraclub and further implemented varied features to ensure that the customer journey was optimized. Erajaya utilized Capillary’s analytics platform to thoroughly evaluate customer behavior, using the rich insights to segment and target their customers more effectively. Explore more about Capillary’s Insights+.

 

 
Deep segmentation and persona mapping helped in identifying commonly used social media platforms and interest groups that were key to allocating budgets for the right cohorts to be reached with personalized targeted offers and marketing messaging that were consistently engaging.

 

1. Introducing Experimental Features

The key marketing attribute that marked the design of Eraclub was diversified experimentation. Erajaya decided to introduce many different benefits across services through integrated rewards. They offered price discounts at hotels and restaurants, for instance, that elevated the customer experience. They also brought in lifestyle influencers to advocate the brand and give out customized coupon codes that increased trials. Moreover, the value or premium membership-based point redemption was activated across services to ensure a seamless buying experience wherein the customer is not limited to any particular product category while selecting as per his own needs. While the basic membership activates – through free registration – cashback for every purchase along with a birthday gift, the premium model goes all out.

 
Erajaya loyalty program

2. Building Multi-brand Loyalty

Next, attention was given to building multi-brand loyalty by leveraging Capillary’s robust loyalty software. Through this lever, customers were grouped based on their inclination towards the various brands offered at Erajaya. Whether the customer is loyal to a particular brand, switches often, or regularly upgrades their products, the deep level of understanding of customers’ preferences helps Erajaya design unique campaigns and offers on the go. During public occasions of relevance or events, mass discounts were also activated. Erajaya’s contextual engagement campaigns – incorporating unique customer segments – were segregated under the following categories:

 

  • Wider campaigns: Sent to a large population with the intention of building brand awareness
  • Brand Preference campaigns: Sent to a selected population who prefer a specific brand over others
  • Segmented campaigns: Targeting a very selected group of members with better personalized messaging
  • Behavior Preference campaigns: Sent to customers based on their needs and unique traits 

 
loyalty+ platform

 

3. Delivering High-Value, Real-Time Rewards

Simplicity and accessibility were the two central themes of the brand’s loyalty program. The complete customer journey to register and earn the rewards had to be simple, quick, and yet remarkable enough to entice customers with an easy registration process. Erajaya and Capillary wanted to create a loyalty program that can be effortlessly implemented by the store staff for a better in-store experience. For this, they made sure to have an easy-to-use website layout, simple points accumulation and redemption, with comprehensible terms and conditions as well as the right point-earning structure based on the frequency of a customer’s store visit – motivating customers to use their points regularly. And their point activation strategy, as explained below, works beautifully.

 
loyalty program Indonesia

 
Catching up with the speed of the digital era, the features of the loyalty program had to be real-time. Instant gratification is an important component of a rewarding experience. Erajaya wanted customers to be able to track their rewards instantly as they thrive on speed and convenience. The brand has designed the program in a way that the benefits offered were relevant to customers and ensured the reward matched the effort required to achieve it. Eraclub has two membership plans – a basic membership which is free of cost and a premium membership with an annual fee which can be paid at the retail stores or online. Key additional steps deployed to offer value to the customers included:

 

  • Flexibility to redeem points as flat discounts during transactions
  • Reward catalog that includes offers from multiple partners providing extra benefits and deals to the customers
  • Effective customer lifecycle management for the best customer journey

 

Growing at a Monumental Pace: The Eraclub Business Impact

Erajaya’s collaboration with Capillary Technologies outshined other players with Eraclub as a result. 75% of the sales contributed came from Eraclub members. A staggering 1.3 million new customers were engaged even during a global crisis. Total sales contributed by members are now consistently on the rise and the revenue growth is exponential as mentioned at the very start. If you are also looking for a loyalty software to change the game for your retail business, contact the experts at Capillary today.

 

Schedule A Call

 

FAQs

1. What is Erajaya’s Era Club?

Era Club is a loyalty program by Erajaya that enhances customer engagement through exclusive rewards and benefits.

 

2. How does Era Club benefit Indonesian customers?

Era Club provides personalized offers, seamless omnichannel experiences, and high-value rewards to enhance customer satisfaction.

 

3. What makes Era Club unique in Indonesia?

Era Club’s use of advanced analytics and real-time rewards makes it a standout loyalty program in Indonesia’s retail sector.

 

4. How does Capillary support Erajaya’s loyalty efforts?

Capillary enables Erajaya with cutting-edge loyalty solutions, real-time analytics, and seamless integrations for scalable customer engagement.