Developing Loyalty Programs for the Foreseeable Future

    Developing-Loyalty-Programs-for-the-Foreseeable-Future

    Recent global events have increased investment in technology and customer retention to unprecedented heights. There are no exceptions when it comes to how businesses invest in their loyalty programs and the technology behind them.

    According to the 2022 North America Customer Loyalty Report, over 80% of respondents in North America whose companies provide loyalty programs indicate they want to raise their investments in customer loyalty in the next three years. Additionally, among respondents in the same area who already have loyalty programs, 80% want to revamp them in the next three years. With these figures, the following three years should see an increase in innovation.

    It seems logical that enterprises have remained with the tried and tested as loyalty programs have traditionally been a transaction-based strategy – points-based programs that focus on purchases made. However, since the time of loyalty stamps and stickers, both consumer expectations and technology have progressed quickly. While there are still several transaction programs on the market, change is on the horizon.

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    Marketers should anticipate a revolutionary change toward emotional loyalty in the upcoming years. Here are some strategies for future-proofing a loyalty program for marketers.

    Adding personalization to the experience of a loyalty program

    According to a New Consumer Loyalty Landscape analysis by Deloitte, under a quarter of loyalty programs tailor the experience based on prior interactions, purchase history, and preferences.

    Marketers must configure their loyalty programs to launch marketing automation emails, campaigns, offers, and loyalty program components in response to member purchases, reward redemptions, and other program-related activities. Focus on developing a more individualized experience for all members when it comes to events.

    Additionally, marketers should actively learn more about their customers through their loyalty programs. Customers’ preferences could be either sought out through gamified surveys or profiles that provide prizes for completion, or preferences should be inferred based on which rewards customers have redeemed and which content they have interacted with.

    Developing a loyalty program that is more visceral

    A loyalty program can become more emotional and less transactional by including three key components: trust, acknowledgment, and lasting impressions.

    Rewarding kind behavior

    By paying consumers for taking on certain soft behaviors that are enjoyable or significant to them, marketers can demonstrate their concern for their audience. Despite not requiring a purchase, these gentle acts nonetheless offer tremendous value. A loyalty program offers several opportunities to encourage non-cash behaviors and demonstrate to customers that businesses value their involvement. Customers can be rewarded for living well and shown that marketers care about the same things they do by designing a loyalty program with tasks and challenges that are a part of their daily life. Additionally, it’s a great tool to foster advocacy.

    Gamified surveys, incentives for exercising or recycling tasks, and awarding product evaluations are a few elements that marketers might start with. These attributes can aid marketers in developing relationships with both existing and potential customers.

    Adding gamification components

    Marketing professionals may create an experience that has a greater impact on their customers by utilizing gamification to encourage trust and recognition. As long as it is more concerned with experience than with cost, gamification is an excellent method to create an impact. Gamification significantly affects financial results as well.

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    Inventive ways to use points

    Marketers should provide consumers the choice to select how to utilize their points or to donate them to an important cause.

    By including these characteristics in the loyalty program, consumers can feel more attached to the brand. Additionally, marketers may develop trust, the foundation of real loyalty, by designing a more relevant, personalized experience and giving customers greater control over the loyalty program. Marketers can create a more indelible experience by connecting with the passions, interests, and emotions of their target audience.

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