Loyalty programs (pick n pay smart shopper case study)Researched & Compiled by: Michael

Rampjapedi 07/04/2015

What is a loyalty programme? Loyalty programs are structured marketing efforts that reward,

customers and therefore encourage, loyal buying habit – which in result benefit the business.

A loyalty program provide a customer with advanced access to new products, discounts or free merchandise.

Reward programs  are offered mostly by retail stores to customers who frequently make purchases.

For example Pick n Pay Smart Shopper Programme: Once a customer has collected 1,000 smart points (R1 for every

point), points can be switched for cash back on the card to spend in store. Customers will also receive regular special offers which are tailored to meet their needs. It’s a simple as that!

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Why loyalty programme? Before adopting a customer loyalty initiative,

businesses and/or community organizations need to identify their objectives, understand the capabilities and limitations of reward program types and systems, figure out if and how a reward program will fit with the organization’s overall business and marketing strategies, and confirm that investing in a reward program makes financial sense.

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Why loyalty programme?There are five main benefits of well-run loyalty programmes: Increase value to the customer through their engagement. Benefits of employing customer-centric retailing strategies across

pricing, promotions and ranging. Improved trade through very targeting marketing and responding

directly to customers’ needs. An increase in asset value from taking more customer-centric informed

business decisions regarding site acquisition, store re-fits, format planning, and roll-out of new services and ranges;

and successful joint ventures with suppliers.

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Case Study: Pick n Pay Smart Shopper Programme

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Overview of Pick n Pay Smart Shopper Programme

You will need your South African ID number or Passport number (for non-SA citizens), when you register or whenever you switch your points, change your details or manage your card to safeguard your rewards.Cards must be swiped when you shop or you won’t get any points.

The only till transactions that don’t earn smart points are third party payments such as household service bills, traffic fines, tobacco products, PnP gift cards, Lotto, money transfers, financial services, fuel and prescription drugs.

You receive points for what you spend, so Pick n Pay will reclaim points for returns and refunds.

If you don’t use your account for 24 months, it will be deactivated. Other terms and conditions apply and can be found in store or on pnp.co.za.

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If you'd like to start saving on every shop, simply sign-up online. You can also fill out a form in-store, or register at the smart shopper kiosk.

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You can use the smart shopper kiosk in-store to view your points balance. You can also select exclusive vouchers before you shop to boost your points.

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Remember to look out for points promotions in-store. There are always a number of offers exclusive to smart shoppers.

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Remember to swipe your card at the till every time you shop to earn points, and hand your vouchers to the cashier.

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You can spend your points to pay for anything in-store, such as groceries, clothing and airtime. You can even pay all your utility bills – it's up to you.

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What are the benefits? You can turn your groceries into Avios by shopping at Pick n Pay

– and explore worldwide destinations with airlines like British Airways.

For every rand spent Pick n Pay gives you one smart point. Smart points will be credited to your smart shopper account

within 5 days of purchase. Once you’ve collected 1000 smart points, you can switch them

for cash back on your card to spend in store. You will also receive unique special offers, including regular

smart shopping sprees.

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Is it easy to understand?Is easy to understand you just sign up and

swipe. There are no sign-up fees, no service charges,

no admin costs and no credit checks. The smart shopper kiosk is always available in

store to check points or manage your account. There service is also mobile app available free for

download.13

What do you like most? Myself what I like most about smart shopper

is you never pay in; you simply stand to benefit from points and rewards tailored to you.

What yours?

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3 RecommendationsPersonalize the Program By integrating special holidays into the program, businesses

can treat customers to extra rewards on birthdays and anniversaries.

Free items awarded on birthdays and anniversaries are strongly recommended since recipients typically will not dine alone.

Providing a free meal or item to a member on their birthday can generate a positive ROI for the business, since the birthday person will normally bring additional family and friends with them.

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RecommendationsOffer Customers Instant RewardsInfluence consumer behaviour further by offering

additional rewards for actions like enrolling, replying with an email address, completing online registration, or linking to their social media account.

These rewards can be small in value and dependent on the completion of all of them to earn the full reward.

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RecommendationsGet your Customers to their First Reward Quickly By providing bonus points/visits to consumers for completing the

registration process, as an example, the initial reward can be earned very quickly.

By earning a reward quickly, consumers view the loyalty program as “real”, which in turn creates the desired behaviour for further repeat business.

If consumers view rewards as hard to obtain, many will lose interest in the program, which reduces the benefits of a loyalty program.

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Main competitors?Clicks, Ster Kenikor Exclusive Books andEdgars

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Summary of their social media presence & activities.

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PnP smart shopper twitter account

@PnPsmartshopper twitter account is active for about 4 years, with 3,775 followers.

Twitter is an online social networking service that enables users to send and read short 140-character messages called "tweets“.

PnPsmartshopper uses twitter to tweet frequently using 140 character messages with interesting images to engage with the customers.

Twitter made it is easier for brands to inform, entertain and promptly respond to the customer queries anytime.

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PnP Facebook page profile

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PnP Facebook accountFacebook is a popular free social networking

website that allows registered users to create profiles, upload photos and video, send messages and keep in touch with friends, family and colleagues.

PnP smarshopper is managed through main PnP Facebook page but which has been active for years

The main PnP Facebook page has 9967,059 likes which benefit smartshopper to reach more people

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PnP Instagram Account

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PnP Google+

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PnP YouTube

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PnP Pinterest

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Contact Information

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I'm a digital enthusiast with the strategic social media marketing solutions. My aim is to help small businesses and individuals create brand awareness

  Visit my blogs and social media pages for more info on what I do.

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