Why Customer Clubs Must Evolve in 2024
Those who know me are aware that I am more interested in customer clubs than the average person and am a member of many. Therefore, it is disappointing that I am mostly let down every time I join a new one. Too often, I find that I just get a digital version of the old promotional flyer I used to receive in my home mailbox. I rarely unsubscribe from a customer club (you never know what might happen later), but I usually end up activating the spam filter.
As a customer, I expect a customer club in 2024 to be more than just a common newsletter sent to everyone who has registered their email address with the club. Often, stores know a lot more about me, at least if they want to. They have access to my purchase history, for example, and a lot of data about my digital behavior.
With 2.9 million members, Trumf is Norway's largest loyalty program and provides customers with benefits in NorgesGruppen's chains.
Personalized marketing and customer experiences have long been one of the hottest trends in retail. A recent survey by McKinsey shows that personalized marketing can reduce the cost of acquiring a new customer by as much as 50 percent, increase revenues by 5 to 15 percent, and increase the return on marketing investments by 10 to 30 percent.
So why can't more customer clubs personalize the content I receive via email?
Therefore, all stores with a customer club should actively work on personalization. But of course, it is challenging to offer hyper-personalization across different channels, as it places great demands on how you collect, manage, and use data.
I am passionate about relevance and the great value that lies in customer data used correctly. Here are my three tips for those who do not have a functioning customer club today:
1. Gain control of the data
Prioritize connecting as much data (product data, purchase history, and other customer data) as possible (remember to ask for consent from your customers) and make the data available to your customer club.
2. Invest in technology
Invest in technology that allows you to use data to personalize offers and other information sent to your customers. Done correctly, this is an investment, not a cost. The value you get back in increased conversion and sales will far exceed the investment.
3. Think big, but start small
Think big, but start simple. Get started quickly, and then gradually increase the degree of personalization. This way, you won't lose much time getting started, and you can measure effects along the way and make the right choices when you need to adjust and increase personalization.
We have been fortunate to contribute to the launch of Meny’s new customer club - Meny Mer. As a member of Meny Mer, Meny’s customers will get more of what they actually like. Based on previous purchases, they will now receive more and more relevant offers, as well as more tailored food inspiration.
Meny Mer is an example of a customer club that I believe functions as expected in 2024.