A win – win for Malls | Merchants | Customers
It is “Survival of the Fittest” that will determine the business continuity of malls in the post covid era. What does “Survival of the fittest” mean in the context of shopping malls? Read on to find out….
To pull through this phygital age, malls will have to reinvent the way they operate with it’s 2 most important stakeholders : Customers as well as Tenants. The future of the shopping malls is dependent on tackling several factors like revenue instability because of the temporary nature of tenants, competition from E-commerce giants where purchase happens by increasing number of millennials and an unreliable customer base that fluctuates frequently between various shopping mall alternatives present with them for better benefits.
The major challenges that Shopping Malls have to face and conquer are:
- Declining Customer Footfall: With an ever-increasing tech versatile population, e-commerce has become a popular and convenient option to shop from resulting in lower footfalls for the mall.
- A Multi Brand / Multi Merchant environment: Merchants function in silos and often forget the ultimate need of the customer is to save time, effort and money. There are proven ways in which the different offerings of the merchants can work in collective gains for all.
- Expensive and complex PoS integration: Technology investment at different stores in a mall at an individual level is much more costly and complicated.
- Replacement of Fixed rental models: With an evolving retail landscape, adopting Revenue Share Tenancy models is a sine qua non, but leveraging this as an opportunity to boost revenues would be icing on the top.
- Wastage of Resources: Individual merchants create Manual Vouchers / Coupons / Packages / Gift Cards that expire and are not utilized by customers, become a cost overhead instead of a profitable tool.
- Scattered Information Management: No comprehensive insights available on consumer behavior from engagement at different mall stores for the merchants to optimize their marketing spends.
How to drive revenues at malls in these unpredictable times?
And the answer is :
Creating a platform for a customer experience that offers value to the 3 stakeholders in the following ways:
- For Customers: A bunch of Experiential rewards, personalized offers and discounts from multiple merchants, special access passes and a lot more exciting gamified engagement tools will excite customers to visit malls. A fun one-stop shop for customers without having to know that they are dealing with different entities. For them, the mall offers an integrated experience.
- For Merchants: Through the efforts of an integrated and collaborative loyalty platform, Merchants will receive a higher footfall with an increase in wallet share & repeat visits.
- For Mall: A solution that helps in ring-fencing multiple isolated merchants so that malls can achieve stable revenues and a promising additional Return on Investment from the multi-merchant loyalty program.
Apart from the above mentioned, the most important benefit is the self-sufficiency of the program. The Business Model is developed such that the program can pay for itself along with accommodating additional benefits for every stakeholder.
Let’s get a wider perspective on what “Multi Merchant Loyalty” is….
Multi Merchant loyalty is nothing but the tieing up of multiple isolated merchants across multiple stores in a mall to bring them under a single roof of LOYALTY 3.0 for the benefit of customers.
Loyalty 3.0 focuses on hyper-personalization of loyalty programs for customers who seek instant gratification and are more interested in experiential, emotional rewards beyond just financial benefits such as discounts. Organizations are using gamification to have better engagement with customers through Loyalty 3.0.
Multi Merchant Loyalty Program is an “All for 1 and 1 for All” approach where customers can hop on from one merchant to another to earn Loyalty Points in a Gamified Mode. Points accumulated from each purchase at the mall can help them win Rewards which enhances the Customer Experience.
What’s the end result??
Increased collaborations among merchants enabling Cross Promotions & repeat visits from customers to gain revenue uplift from Multi Merchant loyalty program.
What are the core elements of Customer Experience in the Multi Merchant Environment?
- App-based contactless commerce
- Consistent Experience among a diverse set of merchants
- Gamification to retain our diverse customers
- Rewarding customers to offer a sense of achievement
- Collaborate with merchants to avail various offers on a single loyalty platform
- Creating a sense of urgency to make a purchase and redeem points before the expiry
Program Mechanics: How will Multi Merchant loyalty Function??
Step 1: Mall will acquire Annual Loyalty Program Cost from merchants to drive footfall
Step 2: Mall will incentivize customers to visit malls by giving step-in loyalty points from Loyalty Program cost acquired
Step 3: Customers will use points to transact again and get more points to reach a specified threshold
Step 4: Customers will reach threshold and redeem points to buy membership/ package/ virtual coupon booklet
Step 5: Mall gets guaranteed customer retention and positive ROI. It offers Digital services to merchants (Reporting, Analytics, FnB Deliveries,etc.)
The Loyalty Promise fulfillment:
A Loyalty Promise is nothing but a bundle of value for the customers consisting of various discount vouchers, coupons, special access passes, and a lot more. It can also be called a virtual coupon booklet, which customers can redeem against a certain number of points or buy through upfront payment.
Various merchants can conveniently populate the Mall App with deals, discount coupons, etc. offering customers to choose from several options. The ease of use for merchants to upload offers on Mall App and offers being available all at once to customers from diverse merchants makes Multi Merchant Loyalty Program the most favorable option.
Once customers gain access to the Mall Voucher Booklet, they can redeem this virtual coupon while transacting at a particular store. Here’s how it works:
- Customer Mall App comes with a QR code which will be scanned for Billing by a store personnel
- The scanning will be done using the Affiliate App created by Reciproci.
- Upon scanning the QR, store personnel will be able to see the best possible coupon applicable for the customer’s transaction.
- The Best Coupon will be automatically applied to the transaction and customers will get additional loyalty points upon each purchase through Mall App hence driving more revenue.
A pictorial representation is given as follows:
Multi Merchant Loyalty is short for “An amalgamation of benefits for each stakeholder”. It reinforces the concepts of contactless commerce through “Affiliate App” and ensures a better way to retain customers in a gamified mode.
A sure way to emerge successful and have an edge over competition, Multi Merchant loyalty is the way forward in the Shopping mall Landscape!