Feb 22, 2016 8:48:55 PM | 4 Min Read

The New Approach to Loyalty

Posted By Snipp
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The New Approach to Loyalty

One of the main things I hear in the space is that brands are satisfied because they have a high enrollment. But how effective can high enrollment be when your ecosystem is set up for low engagement due to a lack of segmentation?

While it is true that the average consumer believes a loyalty program is well worth the effort, how often are they being rewarded for engaging with your brand through an omni-presence perspective?   We need to be cognizant that consumers choose loyalty programs to build these “loyal” relationships and ultimately modify their shopping behaviors to maximize the benefits of that relationship. The need to differentiate is important because the loyalty market is increasingly crowded and everyone is fighting for the consumer’s attention.

Brands are still neck and neck, fighting for ease of reward redemption and maximizing amount accumulated by dollar spent. Our approach is to reward the loyal consumer through a variety of functional reward options across multiple channels. Yes, I am talking about rewarding behavior outside of purchase… scary, I know! I believe our approach identifies well with the consumer because they can confidently think to themselves, “This program is worth participating in because it is fun, enjoyable, meets my needs and was well worth that simple effort.“

Companies often fail to think outside of the box and don’t consider how this program will serve the brand in the long run. Ironic, right? Some of the brands I speak with in the CPG or Retail space think rewarding a consumer with a social call-to-action doesn’t warrant a reward in points. Rewarding your customers for their likes, tweets, follows, check-ins, etc., actually help expand the reach of your program and amplify your messaging. Remember – as a loyalty brand you are collecting an unprecedented amount of data based on consumer demographics and interactions that will help support re-targeting/segmentation campaigns with extremely relevant rewards. As a brand or retailer, you are able to instill loyalty into your consumer because they are excited to buy a product from an entity that engages and understands their needs.

Once we’ve formulated a strategy that is not solely focused on deep-discounting programs, but rather focused on fulfilling customer needs, we are able to better align ourselves with our target audience. This strategy will leave the consumer feeling recognized and engaged by your brand because they really feel as if their needs are personally being accommodated. You GET them!   As a CPG brand or Retailer, you don’t necessarily need to go out and execute “Experiential Events to “provide a positive experience to your end-user.” Just reward their loyal behavior and encourage engagement strategically!

Whether you’re a brand or retailer, we can help you with your loyalty program.

Check out our relevant resources on loyalty to arm yourselves with the latest industry knowledge and know-how:

CPG_Loyalty_WP-blog    Retail_Loyalty_WP-blog    Loyalty-Infographic-blog
WHITE PAPER
Loyalty for CPG Brands in 2016
The Fundamentals of Progressive Retail Loyalty Programs

INFOGRAPHIC 
Lasting Loyalty: Trends for the Digital Age

By: Igor Kolpak
Business Development Representative

 

Topics: White Paper, Loyalty, Trends

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