Customer loyalty is rapidly changing. As comparison shopping tools make it easier than ever to find deals, consumers are re-evaluating their relationships with brand loyalty programs. No longer satisfied with basic spend-more-save-more programs, consumers are asking brands to supplement transactional rewards with those that are more experiential, including free samples, invitations to exclusive events, and access to special services.
For their part, brands that are spending more to fund loyalty programs are taking new looks at what additional benefits the platforms can bring them. At the top of the list is the wealth of customer data that loyalty platforms generate. When woven into overall customer journeys, loyalty data can reveal opportunities for quick sales wins, and for longer-term engagement strategies.
Some brands are also making Loyalty a centerpiece of their Voice of the Customer programs, as they seek to combine all channels to get a true 360 view of how to best engage the customer.
New to loyalty programs? Click here to read our blog for beginners.
For a quick test of whether you are getting the most out of your loyalty program, OSF Digital Strategy has come up with a 5-question checklist:
OSF Digital Strategy’s Loyalty Check-Up
Please answer yes or no.
- I have a vision statement for my loyalty program
- I have KPIs for my Loyalty program that I collect and review regularly
- I have made or considered adjustments to my loyalty program based on data
- My loyalty program’s rewards go beyond the transactional
- My communications to Loyalty members are personalized for tiers and for segments within tiers
Hint: If you answered “No” to any of the questions above, you need a loyalty tune-up in order to maximize value for your customers and for your business.
What you need to review:
- Vision statement – updated over time to keep pace with business and customer needs, a vision statement can help you ensure that your loyalty strategy and execution stay on track.
- KPIs – in order to understand how your loyalty program is doing, you need to set and track goals regularly
- Data and Optimization– you should be taking the data you harvest from your loyalty program and turning it into actionable insights
- Go beyond the transactional – consumers expect loyalty programs to combine offers with experiences. Are you providing the right mix?
- Personalization – one of the reasons loyalty members share their data is so you can get to know them better. Make sure your content strategy demonstrates that you are holding up your end of the bargain.
Like all other marketing programs, loyalty needs proper care and maintenance in order to deliver a strong ROI. With a few small upgrades, you can have your loyalty program delivering significant improvements for your customers and your brand.
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