Lush reveals its approach to loyalty

Most brands seem to think the way to engender loyalty is to offer money off random products next time you buy. But Lush is taking a different approach. Its chief digital officer Jack Constantine believes loyalty isn’t about “offering discounts” and so it will be looking at how it can offer customers “instant benefits” that add to the experience.

One way is through subscription services. It has already launched one for its bath bombs and Constantine hints that more are to come. It is also looking at a “fan club”, and while light on detail, that suggests it is looking to improve the experience for loyal shoppers rather than offer points or money off.

Lush is one of a growing slew of retailers realising that the nature of loyalty is changing as digital impacts all areas of a business. Lush hopes one day to be able to recognise its best customers as they come in-store and offer them something unique. It’s a bold aim and one that no brand has really managed to make work yet. If Lush can make the digital and physical “seamlessly overlap” its biggest fans might just become even bigger.

READ MORE: Lush to prioritise subscription services and fan clubs as part of loyalty drive

McDonald’s gets ready to start marketing its digital services

McDonald’s has been spending a lot of its time improving the customer experience through digital. It has launched mobile order and pay, introduced digital kiosks and been rolling out delivery through a partnership with UberEATS.

The company says it is pleased with progress so far. Delivery revenue is proving to be incremental, rather than cannibalising in-store sales, while mobile ordering is boosting customer satisfaction.

What McDonald’s hasn’t done yet is “flip the marketing switch”. And that means most people don’t actually know it is offering these services. Once it does it expects demand to ramp up. But if it wants to maintain those customer satisfaction scores, it will need to…