Ozon Holdings announced a new customer loyalty program yesterday, christened OZON Status, which was designed with the participation of customers.
Ozon indicates that just 10% of its customers generate 50% of its sales. These intensive customers, who tend to purchase a variety of items from different categories, will be granted a special status from the very beginning of the program.
Not only will they enjoy discounts as in traditional loyalty programs, their benefits will include exclusive access to heavily discounted sales, coupons for free delivery, easier return procedures for defective items, as well as a dedicated customer service hotline.
The company’s research has shown customers’ strong interest in non-material rewards such as the possibility of offering birthday gifts to their friends or sharing their special customer status with them.
Previously, Ozon used a traditional point-based loyalty program that provided a mere 2% discount. “This was a one-size-fits-all approach to loyalty, which was easier to manage but did not provide the level of value and personalization that our most loyal customers wanted,” Ozon’s Head of PR Maria Nazamutdinova conceded in an exchange with East-West Digital News.
The new program offers a much higher value. “Under the former system, a gold customer who spent 20,000 rubles (around $630) per year would earn the equivalent of 400 rubles ($13) in benefits. With the OZON Status program, the same customer will receive a total value of over 5,000 rubles (around $160) in the form of free deliveries, birthday gifts, discounts, etc.” Nazamutdinova explained.
Ozon expects to invest no less than 1 billion rubles (approximately $31 million) in the new program. “The figure represents the incremental cost of benefits that will be provided to OZON Status customers in the next 2-3 years,” said Nazamutdinova.
Ozon also claims it has significantly improved email communications, with more personalized and advanced features, taking into account its customers’ behavior and preferences.
While the new loyalty program has been developed in-house, Neolane is providing the email platform.
A leading Russian e-commerce group, Ozon Holdings generated $250 million in net sales in 2012. It comprises Ozon.ru, one of Russia’s most established online retailers, Sapato.ru, a major shoe retailer, Ozon.Travel, and the delivery company O’Courier.
- RUSSIAN E-COMMERCE REPORT – The total volume of Russian online retail reached approximately $13 billion in 2012, up 25% from the previous year, not including cross border sales. EWDN, in partnership with leading universities and consultancies, has published an in-depth research on this industry, including a detailed analysis of online marketing strategies. To receive free insights or to order the full version (2013 edition), please contact us at [email protected].
