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Why Marketing Automation & Loyalty Management Go Together

Updated: Sep 9, 2022

7 May, 2022. I was out shopping with my best friend, Asha at H&M, Orion Mall, Bangalore. Although we both are crazy shopaholics (Asha being the bigger one), this time we weren’t shopping for ourselves.

We were actually buying clothes to surprise a friend of mine for his birthday which was coming on 9 May.

The plan was simple. Pick two shirts and get them billed. But then the ‘shopaholic me’ ended up picking this cool pair of jeans and by the time we reached the billing counter, I was already guilty.

With the same guilt in my eyes, I watched the clothes get billed one by one and then something amazing happened.

“Do you have a membership card?” asked the guy who was billing our items.

“Yes, I do.” replied Asha.

“Great! We actually have a birthday offer running wherein you get 15% off. When’s your birthday?”

“It was on 30 April.” Asha said.

He replied, “How cool is that! Then you’re eligible for the birthday discount”.

As they spoke, I stood there, feeling the guilt being replaced with joy. I was so happy to see that my pair of jeans became almost free after the discount and I kid you not, I told Asha, “This is why you’re the best!”.

You see what happened here apart from me falling for Asha all over again? H&M smoothly offered a great experience to one of their customers with their loyalty program. Here’s a simple explanation on how they did it.

How H&M Aced Loyalty Management Like a Pro

Analyse: H&M first analysed whom to target. I can’t even remember how many years Asha has been buying from H&M.

Communicate: Once H&M knew that Asha had been regularly purchasing from their store, they offered her a card where she could collect in-app points for every purchase. They also communicated that once she collects 800 points, she will be eligible for special discounts.

Source: H&M Loyalty Program

Personalise: All of the communications were also personalised through special discounts (15% of your birthday) to an extent where Asha felt privileged as their customer.

Now, what if H&M hadn’t leveraged loyalty management?

We’ll talk more about it soon but first things first, let’s get into the basics.