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“Loyalty programs are very effective for luxury brands”

Why did you start a loyalty program?

The main reason is that we want to give something back to regular, loyal customers, while at the same time better understand customers’ purchasing patterns. It is key for us to be able to adjust the information we send to our members with their purchase history and preferences.

From my previous experience at NET-A-PORTER, we saw that as much as 90% of the revenue came from returning customers. We learned that a good relationship with loyal customers was incredibly important. My goal is for us to achieve something similar with Linestore.

Loyalty programs are very effective for luxury brands, because customers who shop a lot can earn a good bonus. We want to give members a chance to be rewarded well when they shop a lot and often with us.

The loyalty program will also be an incentive to head out to Fornebu S, which is located just outside Oslo. We have many regular customers locally, but we also want to attract customers from larger parts of the Oslo area.

An important reason to start with a loyalty program is to prevent a discount-related focus outside of the large sales periods of June/July and January. The loyalty program gives great value back to those we want to give something back to – throughout the year.

How did you hear about Diller?

We were in talks with several providers of loyalty programs, but they were too extensive and had extremely high prices. It would have been difficult to calculate a sensible ROI on such an investment.

However, our POS provider Front Systems told us of an integrated solution also working with Shopify. We were then introduced to Diller.

We quickly saw that Diller as a very interesting solution, since we could easily segment by gender and age, which is an important feature for us. We also found that Diller is super easy to use, affordable in price, and that the system works great in both the cash register and our webstore.

How did you get started with Diller?

Holzweiler has used Front Systems since 2014, while the CEO and purchaser have used Front Systems from the very beginning in 2004. We have their POS system in all our shops. It’s a very good cash register system, and their online solution with login and control is awesome.  They also have RFID tags on products, so that we can scan the code at checkout. The web portal provides reports, history, and transactions.

After we had decided on Diller, we set up an onboarding meeting, and were quickly up and running. It was a very smooth and straightforward process. 

What do you see as the main advantages of loyalty program?

Undoubtably the most important is being able to reward loyal customers who shop regularly, so that they come back to our store instead of shopping with others.

There is a strong competition in the fashion industry, and we want good customers to get great benefits and be hence be motivated to return.

With a loyalty program we get to know the customer much better and can create relevant campaigns and content for them. This is really important. We avoid the mid-season sales and can reward those who choose us over time.

How do you recruit new members?

First we transferred the GDPR compliant customers from our database to Diller. We sent them an SMS and already over 200 customers have consented to becoming members, just after launching the program.

The most important job starts now, with recruiting new members. We register new members at checkout, and when we ask thme whether they want to join, no one really declines. It’s just important to remember to ask them! We will also put up a poster at the cash register to remind customers that we have a loyalty program with great benefits.

We give a 15% discount on the first purchase to new members. What’s interesting is that we can see directly that it leads to a larger shopping cart. We had a customer who ended up buying an item in two colors, because she thought it was such a good offer with the 15%.

What do you think of the collaboration with Diller?

Very, very good! It’s been really easy to set up, and the support from Diller is awesome.  I have worked quite a lot with online stores before, and the team at Diller provides good input all the way. I find that they are not “order recipients”, but rather advisors who work with us. They are solution-oriented and provide great recommendations.

What do you think of the collaboration with Front Systems?

It’s fantastic. We get good help from both Lars and Haakon and everyone at Support!

How important is it that Diller is integrated with the POS system?

It is simply alfa and omega, because what happens at the cash register is key. It is a very smooth process, both in the stores and online.

How important is it that Diller is integrated with the webstore?

It’s essential. The integration between Diller and Shopify is seamless and good. This is absolutely necessary for us.

For example, if we have a customer who has bought a gift for a family member, we can simply look up the customer and all the purchases will show, with sizes and. It enables us to provide good customer service. It’s also easy to give our customers recommendations based on previous purchases, and this often leads to additional sales.

What do you expect going forward?

We hope that we will take big steps in terms of revenue increase, and that we will have many active members. It is important that we spend enough time and resources to achieve our goals now from the start. We are very excited. Now it’s all about recruiting new members!

We believe that analyzing purchase data over time will become important, and that it is absolutely necessary to have good segmentation. We want to send SMS messages that are tailored to segments instead of campaigns on menswear to women and vice versa. An SMS from us should be relevant and interesting.

People are members everywhere, but we have something that is unique in our segment. We want to offer an exciting loyalty program to be a member of, which gives loyal customers great benefits.

We plan to run in-store events to showcase new products and collections, and for example let members shop 7-10 days in advance during our sales periods. Loyal members should also have access to in-demand items earlier than others.

How have you set up your loyalty program?

We have built up a bonus program with Gold/Silver/Bronze levels, so that we give back in the best possible way for different levels of purchases with us.

We want to do things a little differently. On Black Friday, for example, we do our own thing – no offers or discounts on everything, but rather  a good discount coupon for everyone who has become a member of the loyalty program since we launched it.

We also plan to run competitions, such as member X or Y getting a pair of free shoes. In the fashion industry there are very many players. We want to be top of mind!

What do you think about the combination of physical store and online store?

We have linestore.no webstore, and it is of course very important to make our product range easily available online.

At the same time we have great faith in the personal experience in-store, with good communication at the time of purchase. We have had the same part- and full time employees for 6-7 years, and it means a lot to us that our customers experience continuity. Customers sometimes just come to say hello. Over time it provides both good revenue, high conversion rates, and happy, loyal customers.

Our webstore went live just 3 weeks ago and we will be using the website actively to draw customers to our store. The webstore is therefore a virtual  “look book”.  We invest in marketing both the physical store, webstore, and loyalty program going forward, so that we get at great start of the program with many new members.

Diller® – the loyalty platform that has everything you need. Easy, intuitive, affordable and profitable.

The Diller® loyalty platform helps small and medium-sized businesses increase their competitiveness by getting customers to shop more, and more often. This saves costs and increases the lifetime value.

Diller® is a smart solution for companies that do not have a large marketing budgets, but still want to increase sales. Marketing is expensive, and a loyalty program offers huge savings because you do not spend precious funds getting new customers into the store and webshop.

With a good loyalty program, you can convert single sales to repeat sales and get much better customer dialogue.

“We like that we can customize campaigns exactly how we want to”

Why did you start up a loyalty program?

We wanted to create a closer bond with our customers and at the same time offer our loyal customers some extra benefits. We had been thinking about it for a while, and in connection with the opening of the online store, we took the step in December 2020. We already had many loyal customers, and we wanted to give them extra benefits by becoming members of our loyalty program.

How did you hear about Diller?

We received a recommendation from Erik Wenås in Protekt IT, which is our dealer of cash register systems. We are extremely satisfied with the collaboration – and with the loyalty program. And not least, our customers are happy!

What do you consider to be the most important benefits of Diller?

We like that we can customize the campaigns exactly how we want to. Campaigns and activities are easy to manage. We have clients who shop a lot with us, and they will get extra good benefits based on their purchase levels.

In the past, before we had a loyalty program, we often made a difference between the customers, in that some got an extra item with big purchases while others got a discount. It was a bit random. Skien is a small place in Norway, and it is important that the program now is the same for everyone, i.e. that customers get the similar discounts and benefits, depending on their purchase levels. It’s become more fair for our loyal customers.

What kind of results have you had so far?

We can see that customers are very happy! We also feel that we have become their preferred store. This is a proof to us that the customer club has been a successful investment.

When customers shop in the store, we ask them if they want to become members and tell them that they get gift vouchers after a certain consumption, invitations to events and other benefits. Everyone signs up!

Have you got any examples of successful campaigns?

When we started the seasonal sale in January, we sent an SMS to the members that they were allowed to come one day before the sale started, and that they got an extra 10% discount on sale items. It was very well received, and we saw a noticeable effect on sales.

We’ll be much more active with the loyalty program after corona measures cease. We will not focus as much on discounts, but much more on creating experiences for members. We have had many events in the past, and now we will connect events with our loyalty program. We believe that customers greatly appreciate such benefits.

How important was it that Diller is integrated into the cash register?

It was extremely important to us, because all the systems became connected and the customers could get a better experience. The integration makes it easy for us to handle customers in a good way even when it is very busy in the store.

How do you recruit members to the customer club?

We recruit members when customer visits the store. We started recruiting members when the sale started in January. We told customers they got 50% off sales by joining the customer club. Everyone signed up!

After the sale was finished, we have continued to ask customers at checkout. We ask if they want to become members, and that they receive gift vouchers after a certain purchase level, that they will receive invitations to events and other benefits. Still no one says no.

Eventually we will also recruit members in our online store, but we haven’t come this far just yet. We will be much more active with the loyalty program going forward and look forward to inviting our members to fun activities and promotions.

Coco’s solution is delivered in close collaboration between Protekt IT , PCKasse and Diller.

Diller® – the loyalty platform that has everything you need. Easy, intuitive, affordable and profitable.

The Diller® loyalty platform helps small and medium-sized businesses increase their competitiveness by getting customers to shop more, and more often. This saves costs and increases the lifetime value.

Diller® is a smart solution for companies that do not have a large marketing budgets, but still want to increase sales. Marketing is expensive, and a loyalty program offers huge savings because you do not spend precious funds getting new customers into the store and webshop.

With a good loyalty program, you can convert single sales to repeat sales and get much better customer dialogue.

“It was essential to us that Diller is fully integrated with the cash register”

 

Why did you want to start a loyalty program?

“We wanted to give good rewards to loyal customers. We think it was appropriate that they should benefit from being regular customers with us. It is a big part of our marketing. This is important for the customers to feel a sense of belonging. to us.”

For how long have you had a loyalty program?

“We had a simple customer program for a few years, but it had limited functionality. We switched to Diller in the autumn of 2020, because it has full integration with our checkout system. We had been looking for this for a long time and were happy when our checkout supplier Com2gether told us we could get a customer club that worked 100% with checkout. ”

How did you hear about Diller?

“I myself am a” system nerd “who likes new technology and good solutions, so I asked if there was any news at Com2gether. It was Stian Aaserud who recommended me to use Diller’s loyalty program. We are very happy with that advice!

The team at Com2gether is also a great help, both Christian and Kristine at Support, Stian at Sales and André at Technical – always good help to get. Diller Support is also quick and good, that’s incredibly important. ”

How does the integration with PCKasse work?

“It is very simple. When we get new members, we enter them with their mobile number. The customer must click on a link to accept the membership, because everything must be correct according to GDPR.”

There is a Diller button at checkout that makes it easy to search for customer data and view their benefits. The customer just provides their mobile number.

Do you have any examples of successful membership campaigns?

“We have seen that it is not just discounts that attract customers. For example, it works well when we send out SMS that new products have arrived from one of our brands. Then the traffic to the store increases, since members like to get early product information.”

The other day we sent a sales campaign SMS, and after 10 minutes the members started to enter the store! One of the customers said that “I left work as soon as I received the SMS”. That’s fun.

We also see that customer evenings in stores are popular among our members. The most important thing for creating good campaigns is that there are clear and concrete messages.

Customers should feel exclusive about being a member of our customer club. For example, if we have obtained 5 pieces of a product of which there are only 15 pieces in total, it is nice to be able to provide information about it to our members. ”

How do you communicate with members?

We see that SMS is by far the best channel, because everyone reads SMS and the recipients do not experience it as “hassle”. SMS is therefore the most important form of communication, but we also use e-mail if we are going to tell about new goods or want show pictures of products, ie more editorial information.

We are concerned about our communication being personal and catchy, because we have many loyal customers that we eventually know well. When we send text messages, it should give the feeling of talking to a friend, and we bake the offers, news or benefits into the text. ”

It is a good functionality in Diller that we can enter the name of the customer in our communication. It makes it more personal.

How often do you send SMS?

“As a rule, we send one once a month, and if there are anniversaries like Mother’s Day or Halloween, we might send an extra one that month.”

How do you recruit new members?

“We ask if customers want to become a member when they shop in the stores. We inform about what kind of bonus they can get and remind them that it pays to be a member.”

We have not done any marketing of the customer club beyond recruitment in store, but plan to have a campaign that we give 100 kroner in welcome bonus to new members on our Instagram channel.

“We have a bonus ladder that gives a 10% bonus when buying NOK 4,000, and then the bonus rises to 15% for NOK 8,000, a 20% discount on the entire purchase when you have shopped for NOK 12,000 and a 30% discount on any item when you arrive. to 16,000 kroner. ”

How important is segmentation of members?

“We believe that it is important. Today we segment, for example, who you shop for, whether the member lives in a house or apartment and whether they have a cabin. We believe that there is much more we can do to create adapted, good benefits for the customers. We will work more on that. ”

The solution for Lively Home is delivered in close collaboration between Com2gether , PCKasse and Diller.

Diller® – the loyalty platform that has everything you need. Easy, intuitive, affordable and profitable.

The Diller® loyalty platform helps small and medium-sized businesses increase their competitiveness by getting customers to shop more, and more often. This saves costs and increases the lifetime value.

Diller® is a smart solution for companies that do not have a large marketing budgets, but still want to increase sales. Marketing is expensive, and a loyalty program offers huge savings because you do not spend precious funds getting new customers into the store and webshop.

With a good loyalty program, you can convert single sales to repeat sales and get much better customer dialogue.