5 New Strategies in Loyalty Marketing
4. Meet the ‘Moment of Truth’
At some point, the customer is going to get enough points stored in the program or has been involved long enough that it becomes time for a redemption episode, such as earning enough points for a gift certificate. “That’s the moment of truth for a loyalty program. And the episode has to happen flawlessly for the customer; it has to be a good experience. It’s got to be easy to redeem; they have to see real value in what they’re getting; and there has to be good follow-up,” describes Ferguson. If it all goes smoothly and the customer enjoys the experience, then he or she will seek to repeat it.
5. Unleash the Unbeatable Loyalty Combination: Economic and Emotional Value
Historically, retail operators focus more on the economic side, but new trends will focus on the emotional side, predicts Ferguson. “There are so many programs out there and many look alike, so the companies that can add that emotional connection to the[ir] program[s] will differentiate them from the programs where it’s just a point-per-dollar kind of value and nothing else.”
After all, a loyalty program gives a company the ability to understand the customer’s lifestyle and behavior, and it can use this knowledge to create an emotional connection. Maybe it’s redeeming points for a three-day golf vacation, or simply a discount to a family restaurant. So while affluent customers want greater value for their loyalty, overall it’s about creating a memorable experience that’s also right for the customer.