Customer loyalty in the sports retail industry is more important than ever—especially in an industry as dynamic as the sports industry. In the hello again podcast, David Tews, former Head of International Marketing at Hervis, explains in compelling detail 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.
A New Strategy for Success in the Sports Retail Industry
The sporting goods retail industry is just like sports itself: If you stand still, you lose. Attracting customers is one thing; keeping them engaged over the long term is another.
This is exactly where Hervis came in. The sporting goods retailer, with around 250 stores in five countries and impressive sales of approximately 500 million euros, has completely realigned its strategy and is proving that digital customer loyalty in the sporting goods industry is the decisive factor for long-term success.
A Fresh Start in Turbulent Times
The sports industry is constantly evolving. After a boom during the pandemic, retailers are now facing new challenges: market saturation, competition from the travel industry, and economic uncertainties are shaping the landscape. But instead of letting it get them down, 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 exactly are your customers?
Whether you're a casual exerciser or a passionate athlete: Purchasing behavior in the sporting goods retail sector is highly seasonal.
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, one-size-fits-all approach – Hello, customized offers!
To reach this very diverse group of athletes, Hervis relies on a clever marketing mix. While traditional channels such as flyers, radio, and TV continue to be used for brand building and promoting offers, one-to-one marketing is becoming an increasingly important focus.
The goal is clear: Move away from a one-size-fits-all approach and toward personalized offers that hit the mark.
Imagine this: You’re an avid runner and receive information about new running shoes exactly when you need it. That’s no coincidence—it’s the result of smart 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 Plastic Card to App
For over 20 years, the Hervis Sports Club has been at the heart of customer loyalty in the sporting goods retail industry and accounts for a high double-digit percentage of total revenue. But tradition alone isn’t enough. In 2022/2023, Hervis took the leap into the digital future:
The old rewards system and the plastic cards have been phased out and replaced with an innovative, app-based solution. This was 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 notifications.
- 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 transition was a complete success: 50 % existing customers switched to the new system immediately. As a result, the Hervis Sports Club currently has an impressive 1.3 million members worldwide. Although some older customers were skeptical at first, the app has since won them over with its benefits and ease of use.
Lessons 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, relies on gamification elements that 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.
