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A sweet rewards program

March 14, 2011 by Doug Fleener — President and Managing Partner, Dynamic Experiences Group, LLC

I'm not a big fan of traditional loyalty programs although I do belong to multiple grocery and drugstore programs. And that's exactly why I'm not a fan. If they really tried to keep me loyal I would only have only one card. Most loyalty programs are nothing more than a way for companies to track buyers and facilitate a discount program.
 
I do like rewards programs IF they drive the right customer behaviors. My favorite by far is Godiva Chocolate. It's a tough job I have, but someone has to do it. I encourage you to join as well, in the name of market research, of course.
 
Godiva's free Chocolate Rewards program includes:
 
1. A free piece of chocolate every month.
I love that for a very small investment Godiva creates twelve customer visits a year. Creating visit intent is a vital part of any retailer's customer community program, but I believe it's even more important for independents. Imagine what would happen to your sales if you could increase the number of times a customer visits your store in a year. Now those would be some sweet results!
 
Once you create visit intent it is up to the staff to create purchase intent. This is one area in which Godiva could improve. While the service at Godiva stores is good, I've never had anyone use the free chocolate to engage me in a manner that leads to another sale. Use these visit opportunities to create a sale either that day or in the future!
 
2. Free gift each month you spend $10 or more.
I like the bundling of the gift with purchase connected to the Chocolate Rewards program. I'm sure it's just another sample, but it truly is rewarding the customer for their business.
 
3. Free standard shipping of one online order.
I don't understand why they limit this to one order a year. It seems to me that if a customer is going to regularly order online, I'd want to encourage more sales. Personally, I'd offer free shipping at a certain price point, or I would discount the shipping for reward members.
 
4. Exclusive online special offer every month.
An easy benefit that creates exclusivity for members.
 
5. Their monthly e-newsletter, Godiva Chocolate Notes, with member-only offers and new product announcements.
Of course Godiva wants all of their customers receive their monthly newsletter, so why not link it to all of the benefits of a rewards program?
 
So is a rewards program right for you? That's hard to say, but most of you can adapt some of these program benefits to increase the size of your database and the benefits to your customers of belonging to your community.

About Doug Fleener

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