Do you know why 77 percent of loyalty programs do not even survive for two years? Most of them disappear because they cannot fulfill customer expectations and preferences.
As loyalty program management experts, we wish to share a winning strategy. Let’s take a look at the basics of a successful multidimensional loyalty program.
#1. Not “any” loyalty program
Customers love mix-and-match when it comes to benefits for loyalty programs. A multidimensional loyalty program proves perfect. It combines tiered, partnered, paid, value, and points-based program features. Your shoppers will always have something to choose from.
Multidimensional loyalty programs can meet customer expectations and deliver a rational, emotional experience.
You wish to deliver a program that’s compelling and valuable to consumers. For this, it’s crucial to design various components carefully.
Here’re aspects that you should be clear from day one:
- Define the business objectives of the loyalty programs.
- Choose your priority target segments.
- Offer web and mobile apps with awesome UI for the program delivery.
- Go for a sophisticated ‘adaptive’ engine with an ability to interpret consumer insights.
- Select appealing rewards that can meet and exceed customer needs.
#2. Offer attractive ‘of the moment’ prizes
Appealing experiences and extensive rewards can meet a wide range of consumer needs.
Yes, indeed, consumers appreciate transactional and price-based benefits. But, rewards need a different approach. These goodies should add value to your consumer’s daily life. Plus, you can enhance personalization by using interaction-based data for delivering special moments.
Do rewards align with the brand value? Are these something that consumers appreciate? Can these be of any value in the consumer’s daily life? Find answers to these questions. The motivational value of the experience or reward should be appealing.
#3. The ability to add value and evolve with time
Your competitors will respond with something better than your offers. Thus, your loyalty program should also evolve on an ongoing basis.
You might wonder, which are the factors that reveal consumer behavior? How to determine the time to evolve and add more value to loyalty programs?
Analyzing behavioral data was never so easy. You can use factors like social media activity and other data signals. Check how your shoppers react to specific blog posts and other content. This data can help in the refinement of consumer behavior understanding.
#4. Your technology platform should be adaptable and flexible
Yes, technology plays a crucial role in recognizing, responding, and rewarding your consumers.
The platform should have the ability to work with an adaptive personalization engine. The integration will ensure you offer a tailored experience.
Software programs help get the most out of your multidimensional loyalty program. Ensure you choose a loyalty platform that’s adaptable and flexible.
Here’s a glimpse at functions that loyalty platform should be able to process:
- Customer journey orchestration
- The delivery of offers, rewards
- Content ingestion and aggregation
- Choosing precise moments for delivering experiences
- Integrating with a variety of channels and offering a unified experience to shoppers
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#5. Your multidimensional loyalty program has to be data-centric
Studies have already proved the benefits of customer data analytics. Data helps understand shoppers’ needs, preferences, behaviors, and drivers of consumer satisfaction. Firms that drive insights from raw data can maximize their profits by as much as 126 percent.
Interpreting, learning, and predicting shopper behavior becomes easy by leveraging AI and ML. These interpretations help in offering an engaging and compelling consumer experience. The organization can establish goals on accountability and actionability. Data can also aid in evolving the loyalty program and ensuring differentiation.
#6. The engagement has to be multidimensional
Personalized experiences have become a necessity. Roughly 80 percent of shoppers expect you to know their likes and preferences.
The adoption of digital technologies is widespread. Plus, most customers opt-in to share their data. How does this help? Well, companies can create a deeper level of curated experiences and personalization. Unfortunately, loyalty campaigns run by most brands have failed to catch up.
Where’s the primary blind spot in loyalty programs run by most organizations? Most companies fail in engaging consumers at an emotional and personal level. So, they cannot achieve improvement in brand loyalty and consumer engagement.
Company executives claim their brand keeps track of consumers’ emotions. But, shoppers think otherwise.
What’s the solution? The one size fits all approach may not yield good results. Loyalty programs that offer multidimensional, personalized micro-moments can win the race. For ensuring success, companies must become more dedicated to understanding what consumers want.
The entire customer journey consists of preference-shaping and decision-making moments. Shoppers often perform these intent-driven moments via smartphone. Actions can be to buy something or to discover and learn. These points create a digital trail. Firms can analyze the digital track. They can use micro-propositions for targeting consumers in different mindsets, situations.
Brands can use these moments to connect with shoppers via different channels. Personalization is possible across various touchpoints. And this is the critical difference between flat loyalty and multidimensional programs.
It’s the best time to develop brand loyalty
Did you know? Retaining existing customers costs six times cheaper than getting new ones? Digital marketing is a costly affair. The price involved in attracting new customers is going upward every month.
Post coronavirus, companies deploy more resources to manage relationships with existing consumers. Loyalty programs are indeed the most valuable assets for small and large brands.
A glimpse into valuable benefits of developing strong consumer loyalty:
- Offers added advantage in maintaining premium pricing.
- Brands get better bargaining power while dealing with distribution partners.
- Helps in reducing selling costs.
- The organization remains better equipped to compete with new entrants in the category.
On the endnote:
Loyalty programs motivate buying behavior. They give a reason for consumers to keep on shopping. Offering more rewards can multiply the chances of turning a one-time purchaser into a devoted consumer.
Do you wish to create a multidimensional loyalty program? Get in touch with LoyaltyXpert. Let our team develop unique loyalty management web and mobile platforms for you.