The loyalty cards have been made a hole in the Spanish portfolios and their use grows dramatically. The loyalty cards, launched by large airlines, textile and food chains to ensure the loyalty of their customers, are the real engines of this growth.
According to data from the third wave of the study "Measuring the effectiveness of Loyalty Programs", Kantar TNS, in 2016 loyalty programs contributed to some brands more than 50% of their sales.
According to a study by American Express Spain, 81% of Spanish consumers use loyalty cards, compared to 7% who forget to use them despite having one of them. These consumers usually have an average from three to five cards.
Millennials are the most impulsive, and therefore they are more sensitive to the offers launched by the programs, 64% acknowledge that they exchange points for offers. This trend is also observed in households with an average income volume (67%)
The physical card is still the most used support to accumulate points according to 77% of respondents, although 44% declare that they accumulate points automatically at the time of purchase without the need to present a physical card. The apps of the loyalty programs do not have a great penetration among the Spanish users. 40% confess to not knowing if their program has an app and those who know it exists, half do not use them. Millennials are the ones that most use apps and 26% of them consider them essential in a program of this type.
Loyalty programs customers prefer that the management of it is done through digital channels. One out of every two members of a loyalty program prefers this modality. When registering for a loyalty program, consumers especially value the economic benefit.
61% of loyalty programs consumers admit that they would like the offer of prizes to be wider. Middle-aged users are the most demanding in this regard, while those over 55 are the most comfortable with the existing offer.
Millennials are the most impulsive, and therefore they are more sensitive to the offers launched by the programs, 64% acknowledge that they exchange points for offers. This trend is also observed in households with an average income volume (67%)
The physical card is still the most used support to accumulate points according to 77% of respondents, although 44% declare that they accumulate points automatically at the time of purchase without the need to present a physical card. The apps of the loyalty programs do not have a great penetration among the Spanish users. 40% confess to not knowing if their program has an app and those who know it exists, half do not use them. Millennials are the ones that most use apps and 26% of them consider them essential in a program of this type.
Loyalty programs customers prefer that the management of it is done through digital channels. One out of every two members of a loyalty program prefers this modality. When registering for a loyalty program, consumers especially value the economic benefit.
61% of loyalty programs consumers admit that they would like the offer of prizes to be wider. Middle-aged users are the most demanding in this regard, while those over 55 are the most comfortable with the existing offer.
Analysis of our main competitors
Direct competitors:
NoKadi Aplication (App that digitalizes loyalty cards)
Strengths:
- Free app that allow you to have all you loyalty cards unified.
- Not just discounts of only one sector
- Easy to use
Weaknesses:
- Mobile data consumption
- Security of your data
- They don't have a wide variety of companies where you can get discounts
- Discounts very similar and not very attractive
Indirect competitors:
- Existing companies that already offer a reward system (Caprabo, Zara, Hilton...)
Strengths:
- Free loyalty cards
- Discounts
Weaknesses:
- You have to carry with you a physical card
- You have to check the advantages on the web
- The promotions are more or less the same during the year. Not a wide variety of offers.
- Additional time at the store
- Excessive spam
- Additional time at the store
- Excessive spam
● Caprabo
Caprabo is a leading supermarket company in Spain, with supermarkets and hypermarkets in Mainland Spain, the Balearic Islands and the Canary Islands. Caprabo was founded by Pere Carbó, Jaume Prat and Josep Botet, in 1959. It operates an online shopping and delivery service in Spain. Caprabo was acquired by Eroski in 2007.
Zara is one of the largest international fashion companies. The company was founded in 1975 by Amancio Ortega and Rosalía Mera. It belongs to Inditex, one of the world’s largest distribution groups.
Strengths and weaknesses of our company
Strengths
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Weaknesses
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All your loyalty cards on your smartphone
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The investment that companies have to do for the infrastructure
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Attractive and wide variety of discounts
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The market can’t have a lot of supply capacity (apps doing this business)
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Maximum privacy for both individual users or companies.
| there will be no investment from companies in the system implementation. |
Developing market
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You can check your points whenever you want on your smartphone
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Companies can obtain more relevant data of their customers
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