Why Loyalty programe? (Pick n Pay Smart Shopper Analysis)

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1. Loyalty programs (pick n pay smart shopper case study)Researched & Compiled by: Michael Rampjapedi 07/04/2015 2. 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. Its a simple as that! 2 3. 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 organizations overall business and marketing strategies, and confirm that investing in a reward program makes financial sense. 3 4. 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. 4 5. Case Study: Pick n Pay Smart Shopper Programme 5 6. 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 wont get any points. The only till transactions that dont 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 dont 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. 6 7. 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. 7 8. 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. 8 9. Remember to look out for points promotions in-store. There are always a number of offers exclusive to smart shoppers. 9 10. Remember to swipe your card at the till every time you shop to earn points, and hand your vouchers to the cashier. 10 11. 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. 11 12. 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 youve 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. 12 13. 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 14. 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? 14 15. 3 Recommendations Personalize 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. 15 16. Recommendations Offer Customers Instant Rewards Influence 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. 16 17. Recommendations Get 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. 17 18. Main competitors? Clicks, Ster Kenikor Exclusive Books and Edgars 18 19. Summary of their social media presence & activities. 19 20. 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. 20 21. PnP Facebook page profile 21 22. PnP Facebook account Facebook 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 22 23. PnP Instagram Account 23 24. PnP Google+ 24 25. PnP YouTube 25 26. PnP Pinterest 26 27. Contact Information 27 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. Blog: mrampjapedi.wordpress.com Twitter: @Mike2dogz Facebook page: Michael MercySocial Follow me to learn more about social media news & trends that can make a difference in your everyday digital life.