The context
The race to the bottom in terms of acquisition, which was still the watchword two years ago and involved heavy investment to recruite new customers, has demonstrated limits. At a time when consumers are being downgraded in terms of purchasing power and digital acquisition costs have rocketed, customer assets are once again taking center stage in marketing plans. Brands, particularly DNVBs, can no longer invest massively in Google for customer acquisition. In addition to transactional offers aimed at triggering a purchase, retailers are also entering a new territory of “post-purchase” to keep discussing with their communities.
For the past 2 years, with the introduction of consent on e-commerce sites, retailers have been designing loyalty-building policies against a backdrop of reduced knowledge about a customer. In many sectors, the amount of customer data collected has fallen by around 40% or even 50%. As a result, C.R.M. action plans involve a higher degree of extrapolation, and 1st party data has become key.
The territory of loyalty is also changing. Discount retailers have entered this field with full force, launching loyalty programs backed by apps. An example is Lidl, offering Lidl Plus since October 2021 then Action (October 2022) and Aldi (November 2022).
The same is true of B2B, with initiatives from Bricoman (Club M) and ManoMano. In the grocery sector, a hotly contested market in Europe, retailers have been revamping loyalty programs every year or every two years. As discount retailers have gained market shares – in the U.K., Aldi became the 4th largest food retailer ahead of Morrisons for the first time in 2022 – paid subscription offers have multiplied since 2021. For traditional retailers, this is a way to increase the feed rate and therefore the retention of their best customers. In France, Monop Flix was a forerunner in August 2021. The €9.90/month or €100/year subscription guarantees a 10% discount on all online food purchases. The other Casino Group chains (Géant, Spar and Vival) followed in October 2021, with the same level of value offer. In the following month Carrefour Plus (€5.99 per month), which guarantees free delivery and 15% immediate discount on 7,000 products.
Another new trend is the launch of loyalty programs in the luxury sector, such as My Dior Beauty (launched in July 2020 in France) and Chanel Parfums. These are classic status programs, with exclusive gifts that cannot be purchased outside the loyalty program.
