Loyalty programs can be one of the best ways to score better customer retention, but the key to success is doing them well. What makes a great loyalty program? That’s a question we’re tackling this week using the new PC Optimum program as an example.
As of February 1, 2018, the former Shoppers Drug Mart Optimum Card and Loblaws PC Plus program combined into one. Both were popular loyalty programs on their own and it stands to reason they’ll continue to be as they come together.
The benefits of having a rewards program have been proven. Nielson found that 84% of consumers were more likely to choose a retailer with a loyalty program and 59% report they’re available where they already shop. If you’ve thought about starting your own loyalty program, what tricks can you take from PC Optimum?
- Don’t tie your loyalty program to a credit card
This isn’t necessarily a make or break, but one thing both the Shoppers Drug Mart Optimum Card and the PC Plus program had in common was that the rewards card was just that — for rewards. With the PC Plus program, customers had the option of signing up for the PC Financial system and earning additional points that way, but it wasn’t required.
- Big money-back rewards
Another feature both the Optimum card and PC Plus shared was the usability and size of the rewards. Both points systems translated into money earned. For example, with the PC Plus program (and continuing with PC Optimum) 10,000 points equals $10. And what’s more, the points are easy to earn on every day purchases, so they add up quickly.
- Offer loyalty program specials or deals
Adding onto the previous point, both Shoppers Drug Mart and Loblaws made it easy for loyalty program participants to earn points while shopping for everyday items. Certain items in-store would even earn more points — such as 10,000 points earned for buying a specific item. Without even offering a discount on the item itself, customers felt like they were saving money.
- Make it personalized
The PC Plus program did this particularly well — and the PC Optimum program is continuing it. Shoppers were able to earn points based on what they purchased often. So, if they always bought the same items from a President’s Choice store, they would be rewarded for doing so. This can be especially effective for building customer retention.
- Make it mobile compatible
In today’s digital world, rewards programs that connect to a smartphone are vital. Rewards cards can be easily forgotten, but most customers shop with their cellphones. Having an app where customers can browse deals, or show their card if they forget it, can go a long way to making your loyalty program user-friendly.
- Keep it free
While President’s Choice is introducing a new, subscriber-only program, PC Insiders, the PC Optimum program is remaining free. So, customers who choose to shop at President’s Choice or Shoppers Drug Mart stores can join the loyalty program free of charge and continue to earn rewards.
The PC Optimum way is just one form of loyalty program. Of course, there are many other avenues a retailer can choose to take for building customer retention, and no program is perfect. But both the Shoppers Drug Mart Optimum card and PC Plus program have proven their longevity and popularity.
Storesupport Canada can help you increase your customer retention even more. Our experienced team can help with in-store merchandising, point of sale, retail audits, and more. See all of our solutions at www.storesupport.ca or call 1-877-421-5081 to pick a plan that’s right for you.