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Lidl is currently testing digital customer cards, with which coupons can be delivered directly to the mobile phone. The project, which initially runs in the pilot region of Berlin and Brandenburg, raises questions in its orientation.

Pricing at Lidl: Discount store attracts with app as digital customer card

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Lidl is currently testing digital customer cards, with which coupons can be delivered directly to the mobile phone. In Berlin and Brandenburg, customers can use the new customer loyalty app “Lidl Plus”. With this, they receive special offers and features such as discount coupons, digital receipts or the flyer ready for every purchase. It is noteworthy that the coupons are not delivered location-based, says pricing expert Hans-Christian Riekhof.

Lidl Digital Customer Card

The free app, available from the Apple and Google app stores, serves as a digital customer card. Lidl has come up with a number of “exclusive benefits” for users. For example, a 5-euro welcome coupon, new digital discount coupons for selected products and savings benefits with the so-called “Lidl Plus crackers”. Also scratch cards with further coupons and price advantages with partners, e.g. at Lidl-Photos, Lidl-Travels, FlixBus and regional, activate providers in the app.

In return, the discount giant receives valuable customer data. Lidl can thus compensate for the major disadvantage of stationary compared to online trading, where it is common to collect and evaluate customer data. Based on customer profiles created from this, the app can then make offers to the customer that Lidl assumes the customer needs at this time.

With the customer data, Lidl sends suitable offers to the app users

According to Lidl, customers do not see different prices based on their data. However, there is indeed a price difference in favor of the app users – compared to customers who do not use the app.

With the digital customer cards, Lidl is faster than e.g. Aldi, the main rival, says Hans Christian Riekhof. The pricing expert finds it interesting that the app is advertised on various local channels – here the example Out Of Home. Even more noteworthy is that the coupons are not delivered location-based. “You could also deliver the push notifications in front of the store, in the store and maybe even directly on the shelf. This would significantly increase the relevance – measured by opening and redemption rates – according to our project experience. Maybe this will come in the second expansion stage”, says Riekhof.

Which campaigns promise particular success can be read in the News from locandis.

By the way, the project of the digital customer card, which is currently running in around 250 Lidl markets in the pilot area Berlin and Brandenburg, is planned to be extended to all of Germany during the year 2020.

Note:
Also read our empirical Study on Digital Customer Cards in retail, system catering and tourism (Riekhof/Brinkhoff 2018).

Further links:

Lidl:
https://unternehmen.lidl.de/pressreleases/190612_lidl-plus

Advertising and Selling:
https://www.wuv.de/marketing/lidl_bringt_digitale_kundenkarte_als_app


Photo at the top: Lidl Germany
Photo: UNICconsult Strategy Development GmbH

Yuqian Xu, Professor of Business Administration at the University of Illinois, conducted a study on "The Impact of Mobile Payment Channel on Consumer Consumption: Evidence from Alipay" in China with Anindya Ghose and Binqing Xiao. The results are interesting in several respects.

Influencing customer behavior with mobile payment solutions

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Yuqian Xu, Professor of Business Administration at the University of Illinois, conducted a study on “The Impact of Mobile Payment Channel on Consumer Consumption: Evidence from Alipay” in China with Anindya Ghose and Binqing Xiao. “These research results are particularly relevant because locandis offers digital customer cards that include a payment function in addition to location-based content and coupon campaigns”, explains pricing expert Prof. Dr. Hans Christian Riekhof, co-managing director of locandis GmbH, a company specializing in digital customer cards and location-based marketing.

Here are the key findings of the study:

  • After the introduction of mobile payments in China, the total frequency of transactions increased by more than 23% on average.
  • The adoption of mobile payment is associated with an increase in so-called “hedonistic” shopping motives. This could be loosely translated as impulse buying.
  • Mobile payment has the greatest influence on products that are associated with low costs or prices and are purchased at high frequency.

The summary of the key findings can be read at the following link:
https://www.sciencedaily.com/releases/2018/11/181129114134.htm

The original study can be downloaded here:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3270523

Photo: locandis GmbH

 

The Food Newspaper, Germany's trade journal for industry executives, has now published an article on the empirical study of the Digital Customer Cards of PFH Göttingen.

Food Newspaper Picks Up Study on Customer Cards

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The Food Newspaper, Germany’s leading trade journal for industry executives, has picked up the study on the Digital Customer Cards of PFH Göttingen. The article once again makes it clear that digital loyalty cards offer attractive prospects to the retail sector as instruments of modern customer loyalty. However, their potential is currently still underestimated.

The empirical study, developed and conducted by pricing expert and marketing professor Dr. Hans-Christian Riekhof and Stefan Brinkhoff, shows that retailers can get to know their customers much better with digital loyalty cards than before.

Acquiring new customers is usually more expensive than retaining existing ones. Therefore, it is hardly surprising that a lot of energy and resources are used for appropriate customer loyalty instruments. In retail, these are particularly plastic customer cards, which have to fight for a place in the consumer’s wallet. In view of increasing digitization, Riekhof and Brinkhoff wondered whether the digital version in the form of IOS and Android apps will prevail.

Instore Navigation with digital customer cards offers further advantages

The article published on May 11 in the Food Newspaper extensively discusses the most important aspects of the current use and benefits of customer cards – analog and digital in comparison. For example, the use depends heavily on the card function: for more than half of the respondents, the sending of coupons and offers, the collection of points and personalized product recommendations are in focus. Instore Navigation, on the other hand, is far behind. It is noticeable that digital navigation in large stores, such as DIY stores and self-service department stores, can significantly improve actual use and measure surprisingly high sales increases. Another interesting side result: Like in a Google search, retailers could evaluate which product category, brand and product were searched for by customers how often.

Read the detailed study at:
https://www.unicconsult.com/referenz/einsatz-traditioneller-und-digitaler-kundenkarten-in-handel-systemgastronomie-und-tourismus/

Food Newspaper online
www.lebensmittelzeitung.net

 

Erfahren Sie welche Konsequenzen die Ergebnisse unserer kürzlich erschienenen Studie zum Einsatz traditioneller und digitaler Kundenkarten in Handel, Systemgastronomie und Tourismus für das Pricing in diesen Branchen haben.

Pricing-Newsletter No. 13 (2018): How Digital Customer Cards Can Change Retail Pricing

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Erfahren Sie welche Konsequenzen die Ergebnisse unserer kürzlich erschienenen Studie zum Einsatz traditioneller und digitaler Kundenkarten in Handel, Systemgastronomie und Tourismus für das Pricing in diesen Branchen haben.

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