22 November 2023

Kik's path to customer centricity and a successful loyalty strategy

At the RETAIL NXT Conference 2023, Patrik Zahn, CEO of Kik, provided fascinating insights into the textile discounter's transformation and customer strategy. The central question Kik posed in light of its 30th anniversary in 2025 was: How can the company remain successful in the long term in an increasingly demanding market? Zahn detailed the steps Kik is taking to put the customer experience at the center and thus build a loyal customer base.

Milestone: Chief Customer Officer and a clear understanding of the customer

One of the key changes Kik has implemented in recent years was the introduction of the Chief Customer Officer, who consolidates all customer contact into a single role. This position assumes responsibility for all touchpoints – from the physical store to the online presence and the hotline. Zahn explained that centralizing customer-oriented tasks has reduced internal barriers and enabled a stronger focus on customer needs. This change has proven particularly crucial with regard to implementing the loyalty strategy.

The "MyKik" loyalty program as a success factor

Since 2022, Kik has offered the MyKik loyalty program, positioned as a differentiator in the highly competitive discount market. Just one year after its launch, the program boasts over seven million participants and a high penetration rate. As Zahn emphasizes, it's not just about discounts, but about gaining a deeper understanding of customer needs and purchasing habits. The data insights gained directly influence product range design and enable Kik to respond specifically to customer demands. Zahn highlighted that loyalty customers experience a 45% higher average transaction value – a sign of growing customer loyalty and appreciation for the brand.

Digitalization vs. traditional customer card – the conscious decision

In the strategic decision of whether an app or a physical card was suitable for the loyalty program, the choice fell on both. Zahn explained that the analysis of the customer structure showed that many customers were skeptical about data usage by an app. The physical card presented a lower barrier to entry in this regard. This illustrates Kik's approach of making decisions with a simple, pragmatic focus on customer needs.

A “democratic” approach without status levels

Unlike many companies, Kik consciously opted against a status-level system with gold or platinum tiers. According to Zahn, Kik values ​​every customer, and the program shouldn't suggest that one customer is more important than another. This democratic philosophy is a central aspect of the program and contributes to treating Kik customers as equals and building an emotional connection.

Gamification and incentives as drivers for sales

Kik also uses gamification elements to increase customer engagement. The proven "wheel of fortune" tool for its stores has been transferred to the digital world, adding interactivity and fun to the shopping experience. At the same time, Kik fosters internal competition through sales incentives and a transparent ranking system to increase card distribution. This sales support through gamification and incentives has proven to be a key success factor, significantly increasing employee engagement and, consequently, customer satisfaction.

Conclusion: Customer focus is the key to brand loyalty

Patrik Zahn demonstrated that Kik is on the right track to evolving from a traditional discount retailer into a customer-centric provider that leverages both data and emotions. The RETAIL NXT Conference thus provided an important forum for exchanging ideas on new approaches to customer centricity, and Kik presented itself as a prime example of how a loyalty program can create not only customer retention but also measurable added value for both companies and customers.