As the customer loyalty landscape shifts, marketers have to adjust how they reward customers. Learn more about how marketers are adjusting their loyalty programs.
Many brands think little about loyalty. Why? Is loyalty management stale? That’s not to say loyalty programs no longer work, or consumers are no longer loyal. While they are definitely more fickle, today’s consumers have simply come to demand more from loyalty programs, which would explain why only 46% of program members are active.
Loyalty management does not deliver consistent results: 41% of the marketers are not happy with the results of their loyalty program. Marketers struggle to identify key metrics they need to track, evaluate the effectiveness of their current efforts, and design tests to calculate the incremental value of the overall program without a process for prioritizing and analyzing loyalty data. Additionally, small teams and limited budgets mean that loyalty marketers don’t have the time or skills required to establish a measurement strategy. Finally, for many loyalty marketers, obsolete technology platforms, relationships with multiple vendors, disparate databases, and batch updates add to their measurement frustrations. Combined with poor data hygiene, these hurdles make customer management both complex and time consuming.
Consumers have assumed control over relationships with brands. This fundamental change has a direct influence on the design of loyalty programs. Customers want to be courted and rewarded during each interaction with the brands they choose. And they want more immediate rewards.
Consequently, traditional loyalty marketing strategies have to evolve from the “transactional” model marked by “earn and burn” towards an “emotional” model where interactivity, personalization and differentiation merge to deliver truly remarkable experiences.
In order for customers to be loyal to brands, brands must first be loyal to customers – surprising and delighting them with personalized, relevant experiences. These experiences have to be in real time with the help of a 360-degree view of customers.
Furthermore, in light of the rapid adoption of smartphones, mobile apps, and social media, brands have to incorporate these channels and devices into their loyalty programs to drive a strategy of conversational marketing that orchestrates 1:1 messages seamlessly across channels.
It’s time to introduce loyalty marketing into the day-to-day brand strategy in order to fully capitalize on loyalty management! With comprehensive customer profile management and efficient, personalized promotional actions directed to appropriate client groups, brands can reduce customer retention costs, increase sales profits, and gain long-term customer loyalty.