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As stipulated in Article 125 of the French Law No. 2020-1525 of December 7, 2020 on the acceleration and simplification of public action (ASAP), promotional benefits cannot exceed 34% of the customer’s sale price. In the case of a loyalty kitty, this means that purchasing a product for €1 will credit the card with a maximum of 34 cents. However, this specific framework only applies:
Like any loyalty program, the kitty program relies heavily on the collection and use of personal data of customers. Its implementation must therefore be carried out in accordance with the GDPR (General Data Protection Regulation). The CNIL (French Data Protection Authority) recommends(1) : to sort out the information needed for the loyalty program and the information that is not useful (and that should not be kept); to inform your customers about the use of their data; delete your customers’ data after a period of inactivity (3 years).
The main interest of a kitty is of course to increase the turnover of the brand: the amount credited should push customers to consume again. However, this device is not necessarily limited to a transactional objective. It is therefore important to be aware that the kitty can allow you :
70% of customers talk about a brand around them when they are satisfied with its loyalty program(2).
Depending on the objectives previously identified, the company can select the most appropriate reward mechanism. This can take several forms:
Prohibition on using the word “free
As stated in Article L443-1 of the Commercial Code, it is forbidden to use the word “free” to promote a food product, even if the customer actually “jackpots” the value of a product.
In addition to being able to combine these different mechanics, the company must define several other aspects of the operation of its kitty.
7 out of 10 customers use the benefits of their loyalty program(3).
The kitty must be based on an omnichannel vision: the customer must be able to take advantage of his kitty on all the points of contact with the brand. In addition to the traditional physical loyalty card, which is still popular with consumers, several other media can be deployed:
91% of customers believe that the loyalty program should be available on all of the brand’s sales media (2). In addition to identification, the retailer must allow customers to easily track their kitty. Most often, this can be done by creating a personal space, which can be consulted online or by mobile.
Whatever the chosen mechanism, it is essential to deploy a flexible, secure and customizable management solution. With Generix Omnichannel Sales’ Loyalty module, you have a tool that is suitable for setting up a loyalty system, guaranteeing emotional loyalty and customized management. It allows you to:
You may also be interested in these articles:
(1)GDPR in practice: control your customer relationship – CNIL – 2022 (FR) (2)Loyalty & Engagement survey – Ifop for Comarch – 2021 (3)Loyalty Barometer – 12th edition – Observatory of customer loyalty and retention – 2021 (FR)
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