How Goloyal and Fidel increased the average customer transaction value by 64% with the next era of loyalty programmes
With Björn Bjärbo, CEO of Goloyal
- Stockholm, Sweden
- Products used
Goloyal’s journey began almost 10 years ago, just outside Stockholm. Unibail Rodamcos Täby Centrum, one of the largest shopping centres in Europe, approached them to build their loyalty programme.
Goloyal took on the challenge, and has built their business ever since around one core mission — building digital solutions that focus on the customer.
In 2016, Goloyal noticed that shopping centre loyalty programmes had only a fraction of the customer base that individual retailers enjoyed.
That’s when Björn Bjärbo, CEO of Goloyal, spotted an opportunity. Björn set out to build a new breed of loyalty programmes for shopping centres – one that not only had shopping centres at its heart, but retailers and customers, too. Most shopping centre loyalty programmes focus on discounts, but after speaking to retailers, Björn learned that retailers had discount fatigue. While discounts might drive new customers in-store, they did little to keep them coming back. To drive repeat foot-traffic, they’d need to think beyond discounts.
So Björn asked retailers a simple question – what would they be prepared to give back? If the new loyalty programme increased foot traffic, and that traffic resulted in a sale, would retailers be open to returning a percentage of that sale to customers in the form of a gift or gift-card? With this approach, retailers would have better control over their margins. They’d also be delivering a more compelling reward to their customers.
To achieve this, Goloyal would first need to find a way for retailers and shopping centres to share customer purchase data, without increasing the burden for the customer at checkout. Asking customers to download yet another app, create an account, make a purchase with a retailer, and then remember to scan their QR code at checkout would add far too much friction. Getting it wrong would result in customer drop-off and lower usage over time.
“Since the beginning of our journey we’ve tried to find solutions to monitor and reward based on actual spending. We knew that we had reached a turning point when we started looking at card-linking. This changes everything for us”
Björn looked into a variety of different ways to access customer transactions and share the information with retailers and shopping centres. This was a core requirement, as it was the only way the retailer and the shopping centre could both reward the customer. He also wanted shopping centres to be able to reward customers for purchases made at specific retailers, or a certain time of day. That way, customers would be able to redeem rewards on things like food and drink while they shopped.
Finally, Björn found Fidel. With Fidel, Goloyal would be able to capture all customer transactions in real-time, as well as the location of each one. The integration took less than 2 days. In December 2018, using Fidel’s API, Goloyal and Vällingby Centrum, a large shopping centre in Stockholm, began to test and roll-out the next era of loyalty programme. Since then, they’ve launched it in more shopping centres, and have seen the average customer transaction value increase by 64% (Dec 18 – Apr 19). The amount of card-linked customer transactions has also increased by a factor of 10x (Jan 19 – Apr 19).
Following their success with Vällingby Centrum, Goloyal launched a new product line using Fidel’s API, City Play, at the beginning of 2019. The opportunity is huge – while shopping centres are limited to a fixed number of retailers and stakeholders, cities aren’t. With Fidel, any retailer can join Goloyal’s programme without needing to buy or implement new hardware or software. Customers only need to connect their payment card once. So far, Goloyal has launched City Play in four Swedish cities: Östersund, Linköping, Oskarshamn and Karlshamn. They’ll expand to the UK this summer.