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How your loyalty rewards you

Dubai - Rewarding regular customers has become an effective tool to enhance revenue

For shoppers in the UAE, having a loyalty card for their favourite store or restaurant seems like a natural choice, and it isn't hard to find several enthusiastic spenders who happily save up their loyalty points for big rewards.
A look at popular brands today reveals that almost everyone from supermarkets and hotels, to airlines and nail salons has a loyalty programme, which rewards regular visitors and returning customers. In fact, it would be almost impossible to find a shopper who isn't consciously or subconsciously part of a loyalty programme today.
The idea behind a loyalty card is a seemingly simple one - a shopper enjoys going to a selected shop or outlet and makes it a point to visit it regularly; the brand notices this and offers them an incentive wherein they can earn something for free if they continue to bring in their business.
However, for many retailers a loyalty programme is much more than a device through which they reward their regular customers. Utilised properly, a loyalty programme is an effective marketing tool with which retailers ensure that their customers continue to ask for their products and services, and spend more money than they usually would when shopping. It is also a rich source of consumer data, as many loyalty programmes are linked to an individual shopper through their mobile number or email address.
When asked about the loyalty programmes most frequently used by consumers in the UAE, shoppers pointed to Carrefour's MyCLUB card, Landmark Group's Shukran Rewards, Club Apparel's loyalty programme, and Air Miles.
Carrefour's MyCLUB card quickly emerged as a shopper favourite with many consumers noting that the easy to use loyalty card offered great value for their weekly and monthly groceries. For every 500 points accumulated on the loyalty card, shoppers receive a Dh50 Carrefour voucher, which can then be used against their next purchase in Carrefour stores and at the brand's web store. In addition to the Dh50 voucher, the loyalty programme also offers discounts on various food sections, such as bread and dairy, in the form of coupons that are printed at the cashier station.
Chandrashekhar Sardesai, who often uses the MyCLUB card, told Khaleej Times that there is a definite cash back advantage in using the card. However, he noted that most of the coupons printed at the cashier are not very useful since they often call for the shopper to buy an extravagant amount of an item to avail the discount. "If I do not buy certain things, then there is no point in giving me promotions on them," he said, referring to the coupons. "They should make them suitable for the person based on their purchase history, just as Google and Yahoo push ads based on browsing history."
Another favourite amongst shoppers was the Shukran loyalty card. Wahiba N. told Khaleej Times about how she had availed over Dh300 off purchases after buying a stroller worth Dh1,200. "When used enough, you do get a good amount in return, and I have benefited from it. However, this does not mean that I would not shop from other places, and neither would I make shopping from stores associated with Shukran a priority; it is just an added benefit that you get from the card," she explained.
While many shoppers are happy to be part of a loyalty programme that recognises and rewards their link to their favourite brand, a fair portion agree that there is room for improvement. Many cite their displeasure at having to carry a card with them, and their frustration at losing their loyalty points on a purchase in the event that they forget it at home.
In addition, many complained about bulging wallets and purses due to the number of different loyalty cards that they have to carry. Several shoppers said that they preferred it when a shop or brand recognised them by their names or mobile numbers, and saved them the hassle of carrying their loyalty card at all times.
Many shoppers also pointed out that at the root of the matter, a loyalty programme is just a way for brands to obtain your personal data for the purpose of marketing. "I think they are scams to give up my personal purchasing data and become a free information stream into their marketing research machine," said Nicholas Karavatos.
His words were echoed by Naima AW, who said: "I get nothing in return to return. I'm not loyal. I just need what you have and would go to other places. I honestly don't think we get enough for loyalty."
- rohma@khaleejtimes.com