You probably already understand that your brand loyalty program needs a competitive edge. Thus, you want it to be socially relevant, interactive, and personalized. You have reached the right post. Here’s a look at what shoppers expect from loyalty programs in this era of consumerism.
- Shoppers appreciate more choices in redemption
Customers need a loyalty program framework that they are comfortable using. They also need many choices when it comes to redemption. Thus, companies are offering customers the ability to use their points while shopping. They have allied with popular e-commerce portals and other affiliate networks.
Such transactions also provide new ways for brands to solidify brand loyalty. Shoppers appreciate taking ownership of their data. They share it with businesses on their terms. Customers trust brands and share their data for getting compensated fairly.
Fintechs are forming partnerships with legacy financial firms. Customers gain from such associations. They can use loyalty points like full-fledged currency for online and brick-and-mortar shopping.
2. Analytics feature helping to identify consumer behavior
Gone are the days when companies bombarded frequent buyers with product information. The aim behind every communication initiative is to engage and improve customer loyalty. More companies are using data to ensure their loyalty programs are showing results.
Does this work? A McKinsey study offers good insights. Data analytics in decision-making can lead to a 126 percent improvement in profits.
Almost every organization generates data daily. Firms can fine-tune customer loyalty initiatives by utilizing mountains of information. Data analytics can help you find characteristics that are common and dissimilar.
Uncovering the correlation between purchase behavior and customer characteristics is the key. Do customers remain actively engaged with your brand? They are more likely to make frequent purchases. Such shoppers spend 60 percent more on each transaction compared to others. They can also turn into brand ambassadors in the future.
Data analytics features in loyalty software can help you send targeted product recommendations. They will remain engaged and won’t take their business elsewhere.
3. Social interactions based rewards
Fostering social interactions is on the cards for several brands. Some of them have already been offering rewards based on consumer engagement for a while now.
For example, Lacoste offers rewards points to shoppers who wear their products and share snaps with hashtags. The incentives depend on the amount of engagement that the person can trigger. Outdoor clothing brand North Face allows loyalty program members to access unreleased designs. Members can also share their feedback on design, colors, and style. Such loyalty programs help form deeper connections with shoppers. They get the opportunity to witness the whole process of bringing the products to life.
4. Value-based loyalty programs will rise
The coronavirus pandemic has triggered economic havoc. Businesses are offering free vaccination, financial support for the homeless. Some organizations are bearing the education expenses of students from weaker families.
Brands have introduced charity-based rewards. Shoppers can participate in such programs and support the community.
Customers are 38 percent more likely to make purchases from brands that work for society. As per EY Future Consumer Index, buyers don’t mind paying more for buying from such companies.
5. Need for omnichannel engagement
No doubt, customers have varying habits and preferences. So, in most cases, loyalty programs are often managed independently on a regional basis. They do not integrate with operational policies. The hurdle in such an approach is the lack of omnichannel engagement. Creating a unified customer profile is crucial. Buyers may search for a product online and buy it from a physical location later. Integrated sales channels can ensure shoppers get a personalized, cohesive experience.
Brands operating in many countries have already begun to structure their customer data. It remains accessible from all geographic locations. Aligning tools is more crucial than ever.
6. Need to merge old reward models with modern open-banking paradigms
You are probably thinking about the term “open banking.” Let’s make it simple. As per Deloitte consultancy, open-banking refers to the ecosystem. Different banking institutions can share data per customer preference.
API or application programming interface plays a vital role in open-banking innovations.
Technology enables companies to transform rewards into real-world currency. Shoppers can use the same across selected merchant networks. It also results in more choices of redemption.
In this era of consumerism, brands need to fine-tune their loyalty programs. Take the American Express’s loyalty program as an example. Online shoppers in Canada and the U.S can use their loyalty points for making purchases on Amazon.
To close up:
Take your digital customer loyalty programs to the next level. Opt for software that can develop rewards programs by analyzing consumer data. Your future-proof program can improve referrals and customer appreciation for the business.
