Custom Fit For Real Results
by Joshua Tretakoff | VP, Account Management
Interesting discussion in RetailWire today: seems that a couple of French professors concluded a study of loyalty programs, and determined that traditional “one size fits all” programs don’t really have a long term effect, but personalized programs that address customer’s individual needs have a dramatic one.
Their advice?
Not unsurprisingly, the professors argued that retailers should focus on providing customers with more “individualized rewards, based on what they value.” As such, the scholars identified five different purchase motivations in surveying shoppers in France from 2005 to 2007:
- An economic motivation: the main goal is to save money;
- A hedonistic motivation: the aim is to feel pleasure;
- A routine-loyal/risk-avoiding motivation: the goal is to reduce the risk of being disappointed by a purchase by remaining loyal to a favorite brand or store;
- A relational motivation: buyers seek to establish a relationship with a store or its staff and be recognized as a privileged client;
- A functional motivation: the aim is to decrease the time and effort devoted to making purchases.
One of the reasons we founded Loyalty Lab was for just this: the ability to create highly individualized, targeted segments within your program, on the fly, and be able to set up different programs that “speak” to the customer. Nice to see this strategy now has scientific backing.
