This was the exact same words that Jeff Bezos told his employees when they launched Amazon Prime. Top retail giant Amazon focused on their loyalty program which enabled them to reach $100 billion annual revenue and be the fastest growing company in the world. Bezos emphasized that their company must focus on making their customers happy and satisfied and Incentivizing their loyalty could make that happen. For Andrew Sobel, the author of the book “Making Rain: The Secrets of Building Lifelong Client Loyalty”, companies can get around 80% of their revenue from repeat customers. This kind of customers usually share their loyalty to the brand to their friends and family and would be part of your free marketing. However, loyal and paying patrons are quite hard to achieve without having a specific strategy. Sadly, for some companies, they are not leveraging the power of repeat customers. Most businesses actually exert their effort and budget into looking for new customers when in fact investing in repeat customers incurs less cost. Filipino companies such as Mercury Drug, National Bookstore, and SM Supermalls shows that it pays to have a good loyalty program.
“We want Prime to be such a good value, you’d be irresponsible not to be a member.” – Jeff Bezos, CEO of Amazon
MERCURY DRUG’S “SUKI” CARDYou usually get to hear the word “Suki” in the Filipino market. It is a Filipino word which means loyal customers. It is usually used as a term of endearment between the seller and the buyer. Being a proudly Filipino brand, Mercury drug take hold of this idea and made their clients feel that they are their “Suki”. Since the launch of Mercury Drug’s loyalty program, their sales grew by leaps and bounds.
SM SUPERMALL’S “ADVANTAGE” CARDWith over 50 malls worldwide, SM Supermalls continues to be the top retail stores in the Philippines. Since the launch of SM advantage card in 2002, The loyalty reward programs continue to be the premier program in the countryIn fact, they have more than nine million members. Or Around 1 out of 10 Filipinos have SM Advantage Card. Could you believe that? Alluring their customers with discounts and perks, Filipinos are most likely to SM than their competitors because of the advantage that they get.
NATIONAL BOOKSTORE’S “LAKING NATIONAL” CARDAs a premier bookstore in the Philippines, one of their key brand strategies is to make their customers stay. “Laking national” is such a strong branding that it makes you remember that you started buying school supplies from their store. They leverage the fact that they are the only player in the market in the 1960s who are selling books and school supplies. These three companies mentioned above are successful cases of loyalty programs. The question now is, why can’t others follow the same?
HERE ARE THE TOP FACTORS THAT HINDERS COMPANIES TO LAUNCH SUCCESSFUL LOYALTY PROGRAM
- Lack of System that can make it happen
- The high cost of launching a loyalty program
- Lack of market study if the program would work