Conversions are a must-have part of the customer's journey, but what happens after the conversion? Customers are often inspired to follow the loyalty cycle when offered an incentive. This implies that an experience, a quality product, or a custom gesture causes the customer to return.
Loyalty cards have been a success factor in retaining customers, as they are rewarded for the purchase of goods or services. Research suggests that loyalty cards have existed since the 18th century, and that the food retail sector has benefited especially from this tactic. Clearly, these programs are not a new concept for consumers, but the old road has been exhausted. Businesses need innovative and attractive ways to retain growing consumer expectations.
Nielsen study identified that 84% of customers are more willing to return to a brand if it offers a loyalty program. However, to ensure a positive consumer sentiment, it is essential that loyalty programs create a dialogue between the brand and buyers.
The Challenge
Dufry, the world's leading travel retailer, recognized an opportunity in the loyalty stage of its customers, and partnered with Opinno to redefine its consumer loyalty experience. The airport retail industry is growing at an accelerated rate, and Dufry holds 20% of the market share. Evidently, they are industry leaders, but problems persist in the loyalty phase of their customers, which has led Dufry to choose to partner with Opinno to address them. The challenge became:
can customers subscribe to loyalty cards quickly, fun and effectively?
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The Process
Opinno's innovative consultants began their research by analyzing customer contact points at Dufry stores. This approach to customer point-of-contact analysis would provide Opinno with an in-depth understanding of how each interaction is leading to customer loyalty and where value is being delivered to customers.
More than interactions, it was important for Opinno to study the identity of Dufry's customers, which meant delving into their home countries. Certain consumers in countries such as Switzerland have proven to be particularly fit to use and participate in loyalty programs. Dufry is a global company with Swiss identity, which partially influenced the implementation of a loyalty program.
During consulting sessions, we discover what is characterized as “wow” moments. These are points of contact or interactions that created a memorable and valuable experience. Opinno used these “wow” moments to inspire new and ingenious ways to create “wow” moments throughout the loyalty stage of the customer journey.
After extensive research and analysis, our team of consultants considered gamification to be a tactic that would attract most customers and foster loyalty, while authenticating Dufry's brand image. Gamification further solves the need for bored travelers who often have plenty of time. The people you design for provide the best ideas, so Opinno's innovation leaders and company representatives led a co-creation session with the target audience.
The result
Through this co-creation session, the first prototype of the machine with ten games was considered a success. In fact, airport travelers used recreational machines. In addition, customers had fun and committed to the brand while using the arcade machine. This loyalty strategy provided by Opinno also allows Dufry to extract valuable data from arcade participants. Data can be used to increase traffic, target leads, and learn more about your customers.
