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London Drugs, already a strong presence in the Canadian retail space, is looking to expand its customer engagement prospects through its new loyalty program, LDExtras. Launched last month, the program seeks to offer strong elements of personalization to offer loyal shoppers rewards tailored to their previous purchasing habits.
“Our customers will now reap rewards tailored to how they shop simply by shopping at London Drugs,” says Clint Mahlman, chief operating officer and executive vice president, London Drugs. “We needed to be sure when launching a loyalty program that it would do two imperative things: be simple and not be onerous on our customers and surprise and delight them each and every time they shop with us. LDExtras epitomizes our goal to help make our customers lives easier and at the same time, have something fun and different and exciting in store. LDExtras is just the beginning of the constant evolution of the new type of relationship we want to have with our customers and how we will engage with our customers into the future.”
In a design choice that has made waves in other industries, the program rewards consumers based on visits, with a $10 minimum spend attached. The structure favors those who spend less with the chain, while potentially alienating those that feel their increased spend translates to a higher sense of loyalty. Undoubtedly, a smaller issue in the retail space than in QSR, the decision to reward visits versus spend remains a significant one in the grand scheme of loyalty program design.
Accompanying the launch is a giveaway that the company has invested heavily in to boost early enrollment. Simply by signing up for the program, LD customers are entered to win one of eight possible $10,000 experiential rewards. By offering experiences like a trip to Machu Picchu or a home technology makeover, the company seems to be targeting a primarily younger demographic as opposed to older segments that may value tangible items.
“The opportunities to bring magic to our customers through LDExtras are endless,” says Malhman. “I’ve challenged our team to go above and beyond when exploring ways we can make our customers’ lives easier as well as to provide them with enjoyable and unique opportunities and experiences as a way for London Drugs to say ‘thank you for shopping with us.’ We know Canadians can shop anywhere. On behalf of our Canadian family-owned and operated company and our 7,000 employees, LDExtras will give back to our customers in an exciting new way and hopefully have them coming back for more. We are beyond excited for our customers to sign up and start experiencing the rewards.”
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