Loyalty schemes are seeing something of a renascence with 64% of brands reporting an increase in memberships over the past year. A lot has to do with the fact that schemes are certainly a lot more sophisticated than they used to be. As more and more retailers understand that the retail landscape is changing and move towards a more omnichannel model, programs can record every customer interaction with their brand, building better profiles to enable greater insights than ever possible before. This allows for more personal marketing to effectively lock-in customer loyalty.
We take a look at how the traditional image and offering of the ‘reward scheme’ has changed and why customers are keen to embrace this like never before.
Loyalty driven through personalisation
This is the main driver of acceptance of loyalty schemes and there is a distinct connection between being able to offer this and achieving customer satisfaction. Consumers want to feel like they are an individual, that they receive unique and bespoke offers based on their shopping preferences and buying habits. Being able to deliver these personal experiences with frequent seemingly tailored communications keeps customers engaged and anticipating the next brand ‘message’.
Making the loyalty scheme even more compelling is where brands deliver in greater value to their customers when connecting with partners. This allows strategic partners to reach a new audiences and deliver something really unique to their customer base. It really helps to ‘extend’ the brand in the customer’s eyes with matched special offers.
When 81% of millennial’s expect the brands they ‘adopt’ to go beyond just generating profit – they want to buy-in to the brand itself and are determined to hold them socially responsible. Almost 66% of consumers are willing to pay more for products and services if the company is committed to reducing their environmental impact for example. Brands need to do more than simply say they stand for their core values, they need to be seen to living up to them. Creating brand ambassadors through an environment of responsible behaviour creates an emotional connection to the brand-and your opportunity to create customers for life. If you need greater footfall – make your scheme reward instore visits. It’s a fabulous way to incentivise your customer’s spend with you and keep them spending!
Statistics from Marketing Land, Crowd Twist