Fidelity card and retention of paying customers

We have spoken for two of the most important supermarket chains in Italy, but the same reasoning can apply to all the others as well as to all those who have loyalty cards and have, in our opinion, loyalty programs that are obsolete and have come to need to be transformed.
We have given examples of how loyalty programs are deniers disbursed generally on a windfall basis, with generally equal conditions for all.

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Then we introduced the topic of loyalty cards or rather paid loyalty programs and in this regard we have given the most striking example which is that of Amazon which with its Amazon Prime already has 150,000,000 customers out of a total of about 2 billion (7.5% at the moment) who join its loyalty program

Among all loyalty programs, we must differentiate between those that make a true “windfall gift” and those that instead carry out absolutely targeted incentive mechanisms.

Gifts are gifts as we have already mentioned and, pass us the term, they are considered due, they are considered to be already included in the sale price while, all value-added services, are generally paid for, and to elaborate more on this, it is good to give an example: Amazon, with its Prime, i.e., its “paid” loyalty system, has reached 150 million customers who pay an annual fee (I pay it as do a great many of you who are reading this) for additional services over and above ordinary customers.

These additional services used to be represented only by the ability to receive products in advance of ordinary deliveries made to the generality of customers, today, so many other things are worthwhile; you pay a little bit more but you have cable TV, a music library with 2 million songs, etc.

We could still give other examples…. We look at Alitalia differentiates its customers on the basis of multiple types of loyalty cards that are “loaded” with the miles that are traveled and incentives targeted to the type of membership that one has, Trenitalia which also has multiple types of cards with different services and rewards, as well as programs such as the use of reserved waiting rooms at special prices for only holders of certain types of cards, etc.


In this case, a mechanism is being introduced, not complex but nonetheless more articulated, of customer loyalty based on what is their relationship with the loyalty card issuer.

Let us now look at this table comparing the areas of overlap between free and paid loyalty programs:

This is the first demonstration of those 150 million Amazon Prime customers, they are all those customers who have some Trenitalia cards etc etc.

However, as we can all see, 64 percent of the users surveyed in an absolutely representative sample are definitely a very large number, which you would not even imagine, but they are.

There is a huge area of opportunity at very high value, within the entire consumer world.

This is proof that there is an absolute need to implement real loyalty programs that have important interaction systems behind them for our customers based on what the numbers, statistics, and big data related to their behaviors suggest.

What more do we have to wait for before we decide to take the plunge for real?


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