Customer loyalty in the sports retail sector is more important than ever – especially in a dynamic industry like the sports industry. On the "hello again" podcast, David Tews, former Head of International Marketing at Hervis, gives a compelling explanation of how a digital strategy leads to success and builds lasting customer loyalty to your brand.
This blog article gives you a summary of the most exciting points from the conversation.
With a new strategy to Success in sporting goods retail
In the sports retail sector, it's like in sport itself: those who stand still lose. Acquiring customers is one thing, they permanently inspiring them the other.
Right here is where Hervis stepped in. The sports retailer with around 250 stores in five countries and a considerable turnover of approximately 500 million euros has its Strategy completely realigned and proves that digital customer loyalty in the sports retail sector is the decisive factor for long-term success.
A Fresh Start in Turbulent Times
The sports industry is constantly in motion. After a boom during the pandemic, retailers are now facing Challenges against: Market saturation, competition from the travel industry and economic uncertainties shape the picture. But instead of being defeated, Hervis has used this phase as an opportunity to reinvent itself.
Away from the discount image, towards an upgraded premium brand. As a result, the branches were modernized, the range was expanded and communication was strengthened across all channels. A clever step that should pay off!
Who actually are your customers?
Whether casual athlete or passionate athlete: The purchasing behavior in the sports article trade is strongly seasonally influenced.
On average, customers make between three and seven purchases per year, with a peak in winter, where high-priced items such as ski jackets fill the shopping cart. The average purchase is between 80 and 160 euros, but can be significantly higher with a bicycle purchase.
David Tews knows his target groups exactly:
- Outdoor enthusiasts and explorers: They prefer to be outdoors, whether hiking, cycling, or in the snow.
- Year-round athletes: Their passion are endurance sports such as running or cycling in the summer and cross-country skiing in the winter.
- Sports enthusiasts: They are active several times a week, often also in a club, and value quality.
- Families: Particularly in Austria, often out in nature or actively sporty in urban environments.
Goodbye, watering can – Hello, personalized offers!
To reach these very different athletes, Hervis relies on a cleveren Marketing-Mix. While classic channels like flyers, radio, and TV continue to be used for brand building and offer communication, the One-to-One Marketing increasingly into focus.
The goal is clear: away from the blanket approach, towards personalized offers, that hit the mark.
Imagine: You are a passionate runner and receive information about new running shoes exactly when you need them. That's not a coincidence, but the result of intelligent data analysis.
When it comes to launching new running shoes, we do take a close look at exactly who the runners are.
David Tews, Head of International Marketing at Hervis
The Hervis Sports Club: From the Plastic Card to the App
The Hervis Sports Club has been the cornerstone of customer loyalty in the sporting goods retail sector for over 20 years and contributes a significant double-digit percentage to overall success. But tradition alone is not enough. In 2022/2023, Hervis took the leap into the digital future:
The old bonus system and the Plastic Cards were abolished and replaced by an innovative, app-based solution A two-year process that required careful preparation and comprehensive employee training.
The benefits of the digital system are compelling
- Every purchase counts: points are awarded from the first Euro – a direct benefit for customers.
- Points always in view: collected points can be viewed and redeemed at any time.
- Fast Communication: Offers and events reach customers cost-effectively via email and push notification.
- Exclusive app benefits: special prices with app coupons, sweepstakes only for app users, and benefits at sports events like marathons.
- Everything digital included: receipts and vouchers are directly available in the app.
| Criterion | Before: Plastic card | Now: App |
|---|---|---|
| Earn points | Starting at a minimum sales amount | Starting with the first euro |
| Points Summary | Not directly visible | Available for viewing and redemption at any time |
| Communication | Traditional Mail Routes | Email and push notifications |
| Additional Benefits | Virtually nonexistent | App Coupons, Sweepstakes, Event Perks |
| Receipts & Coupons | Paper form | Directly digitally in the app |
The conversion was a complete success: 50% of existing customers immediately switched to the new system. So the Hervis Sports Club currently counts impressive 1,3 million members internationallyAlthough some older customers were initially skeptical, the app now convinces with its advantages and ease of use.
Learnings for the future: The key to success
A customer loyalty program is only as good as the data you gain from it and use. Hervis is therefore planning to build a new CRM data lake to create even more relevant, automated offers using AI and algorithms and to utilize data-based predictions.
How well this works depends on how employees use and support the app in the consultation process. After all, they are the real faces behind the digital strategy!
People don't buy sporting goods every day. That's why it's important for the app to remain engaging even between purchases. Hervis, for example, focuses on Gamification Elements, which offer rewards regardless of whether a purchase is made.
Conclusion: Ready for the next step? Test your own app!
Hervis is convinced: Those who work with customer data have a clear competitive advantage. Customers in the loyalty program not only have a higher basket value, but also visit the stores more often. The journey continues – towards even more personalization and automation to offer customers an even more unique experience in the future.
Do you also want to inspire your customers and strengthen your brand? Your own customer loyalty app could be your key to success!
FAQ: Frequently Asked Questions About Customer Loyalty in the Sports Retail Industry
Why has Hervis realigned its strategy in the sports retail sector?
Following the boom during the pandemic, the sports retail sector is now facing market saturation, competition from the travel industry, and economic uncertainty. Hervis has used this period to shed its discount image and reposition itself as a premium brand. Stores have been modernized and the product lineup expanded.
Who are Hervis's main target audiences?
Hervis distinguishes four main groups: recreational athletes and outdoor enthusiasts, year-round athletes, sports enthusiasts, and families. Each group has different needs, ranging from occasional outdoor excursions to training several times a week. This segmentation helps tailor offerings more effectively.
What does one-to-one marketing mean at Hervis?
Instead of sending offers to everyone indiscriminately, Hervis relies on personalized communication based on purchasing behavior and interests. For example, runners receive targeted information about new running shoes. This is made possible by intelligent data analysis.
Why did Hervis switch from a plastic card to an app?
The Hervis Sports Club contributes a high double-digit percentage of revenue to the company’s overall success, but it needs to become more up-to-date. The app replaces the old rewards system with a more flexible, digital solution that enables direct communication. The transition was a two-year process that included comprehensive employee training.
What benefits does the new Hervis app offer customers?
Customers earn points starting with their very first euro and can view and redeem them at any time. They also get app coupons, exclusive contests, and perks at sporting events like marathons. Receipts and gift certificates are also available digitally right in the app.
What are Hervis' plans for customer loyalty in the future?
Hervis is building a new CRM data lake to use AI to create even more relevant, automated offers. In addition, gamification elements are designed to keep the app engaging even between purchases. Active support from trained employees remains crucial in this regard.
