We are all aware of the importance of relationship marketing. Moving customers from one time users to life-time brand ambassadors is the key of CRM, and a move which can significantly increase companies’ turnover. It’s not surprising therefore that most brands now offer a loyalty scheme to motivate repeat purchases. Looking at a specific examples, Nandos is certainly a well-known restaurant loyalty card; they recently progressed from a paper stamp system to an electronic swipe card, storing all of the customer’s data and spending habits, not only enabling them to gather in depth knowledge of their customers, but also allowing them to offer a superior service. In the supermarket world Tesco has had unmitigated success with its ‘Clubcard’ points, not only rewarding repeat purchasers, but incentivising them too. Other established examples of course come from Boots, Starbucks and Nectar.
One company has decided to take its customer loyalty scheme one step further, combining it with the premise of ever popular money-off websites. Food-to-go chain EAT has partnered with Weve’s new mobile loyalty app ‘Pouch’, which stores a retailer’s loyalty cards and then pushes out relevant offers to the customer’s mobile using Beacon technology. The result: happy customers getting the best deals and each restaurant maximising their current and potential consumer base.
Beacon technology works on the basis of tracking a customer’s location through in store markers; if a customer is in the ‘viscometer’ of an EAT restaurant they will receive offers and promotions. Not just standard offers however, the technology enables tailored offers which meet the needs of the individual. Beacon has already been used successfully in U.S stores such as Macy’s and now Coca Cola is interested in iBeacons for their World Cup activity. One of the most interesting things we can envisage about this kind of technology is that it draws on the existing customer base rather than incentivising new, non-loyal customers, and it can help overcome the recent Voucher-site apathy by targeting and personalising offers. Whoever starts using it, it will be important to ensure proper planning and strategy; should companies focus on discounts rather than added value, there is a significant risk that they undermine their existing customer base and serve to reduce rather than enhance turnover.
Currently the app is in the trial stage for EAT, however marketing and media experts The Drum see it being adopted by many other entertainment and restaurant businesses. It seems that the strategic options of relationship marketing are evolving with technology, which is exciting however what does this mean for the smaller independent businesses? It’s interesting to think that originally they were the ones nurturing customer relations but how will they compete in this digitally loyal age? Will they jump on board and maximise technology, or will the cost of the services simply serve to prohibit their successful use?