Comment: Backward step to return to reward points
Morrisons should explore emotional loyalty
Morrisons is scrapping its Miles & More loyalty programme because it confused customers.
Well yes, we agree, it was confusing, but to go back to a simple points loyalty programme is surely a backwards step.
At a time when businesses are increasingly exploring how to tap into emotional rather than transactional loyalty, and bring some excitement, fun and good feeling to shopping, Morrisons has taken the safe, boring and so ‘last year’ step of offering points as rewards.
The struggling number four supermarket in the UK in terms of size, Morrisons tried to be different by offering customers a price comparison that gave extra points if the groceries proved more expensive than competitors. The trouble is, all the other major retailers started doing the same, and in much easier ways, usually through the till receipt. Tesco for example offers the amount off a next shop that equates with the extra the customer has spent by shopping at Tesco.
This of course is also an anti-loyalty message. It is saying that the customer’s last shop was more expensive – but if they come back in a very short timeframe, usually a couple of weeks – and remember the scrappy till receipt with the offer, they will give back the extra 89p or whatever you have spent. We don’t like that practice either. Why should customers have to work so hard?
So what does emotional loyalty mean? TCC, the company that runs short term loyalty programmes and has just brought Naomi Campbell, the MasterChef brand and Gordon Ramsey on as range partners thinks emotional loyalty is “a cognisant approach to provide better connections between retailers and their customers.”
We explore this in an article next week. So don’t miss it.
Read the Morrisons story here