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News in-depth: Boots and IKEA launch new loyalty scheme bonuses
8 Dec 2011

Proving that loyalty schemes should be regularly reviewed to provide the best benefits for customers, two big brands have announced additions to their bonus offerings for members.

Boots today (December 8th 2011) said it will begin giving personalised money-off coupons to its Advantage Card holders at the tills in a bid to make its rewards "more meaningful".

The retailer already has one of the most generous lotalty schemes on the high street, offering four points per pound spent, with every point worth a penny.

It currently gives vouchers with some purchases, but these are generic. In future, it will collect data from each member's card and then provide them with tailored offers depending on what they buy the most.

There will also be more cardholder evenings featuring promotions and giveaways.

Boots marketing director Elizabeth Fagan commented: "This is a way of making the customer feel much more personally rewarded. Customers have to feel that the brands they support are as loyal to them as they are to the brands."

Meanwhile, IKEA is bringing out improvements to the rewards it give to its own members via its loyalty scheme.

Customers will now be able to receive tailored emails when they sign up, Marketing magazine reports.

Markus Weichselbaumer, relationship marketing manager for IKEA, said the move is necessary "to give members a programme that is more relevant to their needs".

Carefully monitoring loyalty schemes could be vital for the travel industry. According to Collinson Latitude, participation in them has declined by 31 per cent, while two-thirds of members are not regularly redeeming their loyalty currency.

Collinson Latitude director Jane Titterson told Travolution: "There is significant scope for both hotels and airlines to be much more innovative with evolving technologies."

Travel companies could consider bringing in contactless smart cards for members and customers to collect points with, as these are easy to use even in busy locations such as airports.