Integrating a Loyalty Platform: Case Study
A large QSR chain wanted to create a platform that connected its most loyal customers more deeply with the restaurants and empower managers and associates to deliver the most convenient possible experience.
The Importance of a Unique Voice and Value Proposition
Take a look at industries where loyalty programs are common. Certain travel sectors or financial services. There are cases where all the main competitors offer loyalty programs, but upon closer examination, there are few differentiators between them.
Too many are simply copycat plans that focus on process rather than loyalty as the outcome. Consumer behavior is driven by accumulating points or gaining some type of compensation, but there is no real love for the company behind the program.
Would these consumers still use the product or service as frequently if there were no points or miles given as a bonus?
It’s All About Human Emotion
Studies show that:
Emerging Loyalty Trends
Loyalty as an outcome
Business school case studies have been written about how Amazon revolutionized e-commerce with its patented One-Click ordering process. Click on a link and the product shows up.
Though Amazon’s patent on one click ordering expired in 2017, they conditioned a whole generation of customers to shop not on price, but on ease. “Click on this link and the product shows up…maybe not at the lowest price you can find, but a decent price.”
The Loyalty Journey
An effective loyalty solution drives consumer behavior and reinforces the brand’s message by taking into account:
It's even more important that your efforts to gain the loyalty of your customers communicates your brand values to new members, and constantly reinforces your organization’s values to existing members.
Loyalty must be a two-way street.
As you develop your loyalty strategy, keep these trends in mind, along with examples* that typify each:
CONVENIENCE
EXCLUSIVITY
COMMUNITY
EASE
PERSONALIZATION
EXPERIENCE
Successful businesses gain customer loyalty through higher emotional engagement. People remember emotional responses, both positive and negative, long after the utility of a product or service has been consumed. Consider the effort that high end restaurant and hotels put into creating an ambiance. These businesses realize the importance of how their products and services make their customers feel.
Brand engagement correlates with loyalty at
Consumers that are emotionally engaged, expect their relationship with a company to go deeper than a mere series of transactions. When businesses achieve emotional engagement with their customers, when those customers become enthusiastic advocates, then loyalty programs can be most effective, boosting that sentimental attachment that already exists. Loyalty initiatives by themselves will not create true customer engagement.
Rational decision-making correlates with loyalty at
But emotional engagement correlates with loyalty at
0.5
0.5
0.75
The loyalty journey begins when a potential customer first learns that a company’s product or service is an option to fill a need. A place to stay, an airline to fly, a credit card to purchase with, food to eat, etc. Rarely do consumers use a product or service for the first time because it comes with a great rewards program. Rewards programs are like turbochargers. By themselves they can’t power a car, but when combined with a motor, they can make the car perform better than it would with the motor alone.
How the consumer and the vendor interact with the loyalty program
Delivery platform
How the plan captures value, benefiting the business & consumer
Financial Model
How the plan functions
Engagement model
Once a business is able to successfully deliver excellence to its consumers, only then can customer loyalty be achieved. A loyalty initiative can help, but it must boost the underlying customer satisfaction. It will not create it alone.
Capgemini built a solution with flexible integration and a decoupled architecture that allowed agility, reliability, scalability, and high availability. The solution engaged with customers who were both present in restaurants and ordering across e-commerce platforms.
The program seeks to reward those enthusiastic consumers by making it even easier to order, with mobile and desktop ordering apps, special arrangements with delivery platforms. The reward program integrates the restaurant chain into aspects of the consumer’s lifestyle beyond food, offering access to sports, games and even new music.
Loyalty as an Outcome
Capgemini is a global leader in partnering with companies to transform and manage their business by harnessing the power of technology. The Group is guided everyday by its purpose of unleashing human energy through technology for an inclusive and sustainable future. It is a responsible and diverse organization of 270,000 team members in nearly 50 countries.
With its strong 50 year heritage and deep industry expertise, Capgemini is trusted by its clients to address the entire breadth of their business needs, from strategy and design to operations, fueled by the fast evolving and innovative world of cloud, data, AI, connectivity, software, digital engineering and platforms. The Group reported in 2020 global revenues of €16 billion.
Nike got those of us of a certain age to “be like Mike”—probably lacking Michael Jordan’s talent, but at least being able to wear his gear. Still today, long after Michael Jordan has retired, his “Air Jordan” logo sits astride Nike’s own, creating a sense of community, and in-group.
Nike as an aspirational brand tells
us that even if we can’t be
a Rafael Nadal or Cristiano Ronaldo,
we can be in their club.
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Source: Capgemini Digital Transformation Institute Survey, The Key to Loyalty; August-September 2017, N=9,213 consumers.
*Correlation coefficient
*Correlation coefficient
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*All product names, logos, and brands are property of their respective owners. All company, product, and service names that are unaffiliated with Capgemini are used in this presentation are for identification purposes only. Use of such names, logos, and brands does not imply endorsement or association.
© Copyright 2022 Capgemini America, Inc.
© Copyright 2022 Capgemini America, Inc.
*All product names, logos, and brands are property of their respective owners. All company, product, and service names that are unaffiliated with Capgemini are used in this presentation are for identification purposes only. Use of such names, logos, and brands does not imply endorsement or association.