Blog 6 min read

Retail loyalty program – a comprehensive example and concrete tips

No one can argue with the fact that a retail loyalty program is one of the most effective ways to reach customer loyalty. With that said, you can’t just whop up a loyalty program in a heartbeat and think it’s going to work. You need strategies, knowledge about your customers, and a well-planned platform for it. And in this blog post, you’ll learn the philosophy behind golf niched company Dormy’s super successful loyalty program!

Why a retail loyalty program?

If you have a goal to reach more loyal customers, a retail loyalty program is the way to go. But not just because you can give your customers more incentives and work with loyalty marketing – but also because you get the opportunity to learn more about your customers’ behavior. It is a win-win situation when you do it right.

Read more: Loyalty marketing – how and why it matters

An example of a successful retail loyalty program

Now, we’ll walk you through the mindset of Dormy’s loyalty program, which is known to be one of the best loyalty programs in Sweden!

For Dormy, working with loyalty is the entire backbone of their organization. Their goal has always been to take care of the customers they have and help them find the right equipment – depending on their individual needs. When they succeed with providing that kind of customer experience, the customers will speak highly of Dormy and recommend more customers to choose Dormy. Here’s Anders Wall, CEO at Dormy Golf:

Working with customer loyalty is the backbone of our business and has been since day one. It sounds cliché, but what’s good for the customer is good for us.

 

Dormy’s concept to be personal with their customers surely paid off – they currently have 400 000 members in their program called “My Dormy”, and 97% of all purchases in physical stores come from members!

Concrete tips

  • Involve your organization in the loyalty program

Make sure everyone knows the importance of loyal customers, and how everyone in your organization can contribute to creating the best loyalty program.

  • Learn as much as possible about your customers

To work with a customer loyalty program, you need to know what your customers want from you and what will keep them motivated to come back. Figure out what is good for your customers by using customer segments!

  • Simplify the process of recommending your brand

You don’t have to sit around and wait for the power of word of mouth. Make it easy for customers to recommend you! Offer rewards or special incentives to members that write a review of one of your products for example.

Read more: How to improve the customer experience and the importance of it

Create added value with your program ­– it’s as simple as that

One of the reasons why this loyalty program is so successful is the added value it gives. Dormy release a physical magazine to members, they always follow up on customers’ purchases and congratulate each customer on their birthday in a personal way. They also recommend products and hand out offers based on the customer profile of each customer so that they always stay top of mind. Then the customer will visit Dormy next time they need equipment. What it all comes down to for Dormy, is to create added value and help the customer to a better golfing experience.

Concrete tips

  • Figure out ways you can provide added value

For example: follow up on customers’ purchases and give tips on how to use, take care of, or install the product they just bought.

  • Use product recommendations

This is pretty much a must for every retailer because it’s such an easy way to be more personal in your communication or on your website. It gives the customer a better, more personalized experience overall.

 

Dormy’s customers stay loyal for a long time

Dormy’s goal is to create long-lasting relationships with its customers. And how do they know their strategies are working? Their customers keep coming back and they stay loyal for a long time! They are working with two different levels of membership, called “base” and “black”. A lot of Dormy’s customers appreciate the perks that come with the higher level.

“People want to be seen and feel appreciated”

Dormy is really playing their cards right with their loyalty program and member levels. Because it lies in human nature to want to be seen and appreciated. That’s why a lot of customers feel proud of belonging to the higher member level. And in the ”black” level, it’s not all about rewards and discounts – it’s about taking care of the customer, walking the extra mile, and showing them gratitude for shopping at Dormy!

Concrete tips

  • Membership levels

Work with membership levels to motivate your members to continue shopping to reach better perks at a higher level.

  • Work with more than discounts

Think outside of the box when it comes to showing appreciation to your customers. Don’t just think of discounts!

Chose the right platform for your loyalty program

To work with personalized communication, membership levels, and gamification, you need a powerful and intuitive platform that allows you to do it all. Voyado has been a great tool to help them work proactively and stay relevant with their customers. A technical advantage is that so many other platforms work well with Voyado – which make implementations super smooth. For Dormy, Voyado has been the perfect tool when it comes to customer consent of integrity-, membership terms and GDPR.

Learn what Voyado can do for you – schedule a 15 min call

Concrete tips

  • Find the best fit

Find a platform that fits your needs and your team! If you are a team of fewer than 10-15 people, you need an intuitive platform that manages to do all the heavy work for you. 

  • Do your research!

Read customer cases, ask for references and get a detailed demo of the platform before you decide.

Conclusion

To run a successful retail loyalty program, you need to involve the entire organization to make sure your customers get a great experience. Learn what your customers want and give it to them! Offer different levels of memberships to motivate members and avoid the discount trap – there are other ways to treat your members. And remember: what’s good for the customer is good for you!

Learn how Didriksons increased their members by 825%

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