It’s harder than ever to earn your customers’ loyalty. They are “always on,” have instant access to myriad choices, and can easily find the cheapest prices from any supplier. Many companies think they’ve solved this with a loyalty program, but the competition is stiff there, too. On average, consumers belong to eight loyalty programs — the majority of which are ruled by points, discounts and financial rewards. And let’s face it: These transactional benefits are more about increasing frequency and spend than influencing emotional loyalty and devotion to a company.
The bad news? Traditional approaches to loyalty don’t cut it anymore.
The good news? I’m not going to tell you to scrap your loyalty program. But I am going to tell you to reframe how you think about your program. It should be treated as one of several tools — alongside customer experience, brand and customer service — that helps foster customer loyalty wherever customers interact. Marketers have a huge opportunity to help their firms gain insight about who their customers are, what motivates them and how they currently interact with their products and services — an opportunity that just 26% of marketers currently cite as a top business objective from their loyalty programs.
Source:: AdAge – Digital