🎓 Definition

A Loyal Customer is a Customer who owns a Loyalty Card – physical or Digital from her preferred Shop. Loyal Customers are often referred to as Carded Customers, in reference to the Loyalty Card they own.

🧪 Example of Loyal Customers measurements

The number of Customers who hold and use their Loyalty Card while shopping will be considered as Loyal Customer while Customers not holding a Loyalty Card are referred to as Non-Loyal Customers
For example, there are 100,000 customers who visited Store X, among them, there are 62,000 customers who own and use their  Loyalty Card (or membership card) then it will be consider than  the Loyal Customer transactions contribution is 62% in Store A .

❓Why to follow Loyal Customers performances is important

• To understand Loyal Customers behavior
Once a customer becomes a Loyal Customer, marketing team can track their preferences, buying habits, and interests. Moreover, Retailer can use this data to personalize, outreach and customize monthly offers to different Customer personas.

• To improve customer retention and referrals
Retailers usually provides exclusive offers and personalized treatment to their Loyal Customers such as coupons, specific discounts, gift cards...those offers are strategies that can drive customer retention. Furthermore Loyal customers often tell their friends, family, or others who are familiar with them about these special offers.

• To measure the success of recruitment campaigns
The number of New Loyal Customers can be one of the measurements to measure the popularity of the Loyalty program and the results of the recruitment campaigns.

• To measure the Loyal Customers profitability
We can measure the Loyal Customers profitability by measuring the margin contribution from the percentage of Loyal Customers margin by the total margin.

• To determine Loyal Customers Sales trends
Loyal customers are more likely to repurchase and try a new Targeted Offer because they own a Loyalty Cards. Retailers can determine Sales trends from Loyal Customers and predict how much sales it can generate from them, also referred to as Customer Lifetime Value.

How are Loyalty Cards promoted or distributed to potential customers?

Retailers use a variety of marketing strategies to promote and distribute Loyalty Cards to potential customers. Common approaches include advertising campaigns both in-store and online, promoting the benefits of the loyalty program, and offering incentives for signing up. These incentives could range from immediate discounts on purchases to bonus points upon card activation. Some retailers also utilize email marketing, social media promotions, and partnerships with other businesses to encourage customers to join their loyalty program.

What are the typical benefits or rewards offered to Loyal Customers through a Loyalty Card?

Loyal Customers often receive a range of exclusive benefits and rewards through their Loyalty Cards. These can include discounts on purchases, special promotions, bonus points for every dollar spent, early access to sales and new products, and personalized offers based on their shopping habits and preferences. Additionally, some loyalty programs offer non-monetary rewards such as birthday gifts, free shipping, or exclusive experiences. The specific benefits and rewards can vary widely depending on the retailer and the structure of their loyalty program.

How do retailers ensure data privacy and security when collecting and analyzing data from Loyalty Cards?

Data privacy and security are paramount concerns for retailers when collecting and analyzing data from Loyalty Cards. Retailers typically implement strict data protection measures to safeguard customers' personal information. This can include using encryption technologies to secure data transmissions, implementing access controls to limit who can access the data, and regularly updating their security protocols to defend against potential cyber threats. Additionally, retailers often provide transparent privacy policies that outline how they collect, use, and protect customers' data, and they seek explicit consent from customers before collecting any personal information. Compliance with relevant data protection regulations and standards is also a key part of retailers' efforts to ensure data privacy and security.

| 🖥️ Make it happen in Ulys Customer Intelligence

How to see the performance of Loyal Customers in Ulys: 2 Simple Steps

Step 1: Select the Performance Menu.

Step 2: Select the Option in the Filter Menu and select the period you want to measure.

And here it is. 5 performance metrics of the Loyal Customers are displayed in each widget, which is: Total Loyal Sales, Total Loyal Margin, Average Basket Spend for Loyal Customers, Average Loyal Customer Spend, and Total Number of Loyal Shoppers