Loyalty programs provide opportunities for people to get free stuff. As part of the loyalty game, engaged loyalty members look for ways to earn more points faster, which brands may provide through accelerated earn opportunities like double- or triple-points days, or buy 3 get 1 free offers, etc. However, as loyalty grows more complex, these earn opportunities may inadvertently create unplanned loopholes, which savvy members will certainly find. Remember when airlines had hidden cities? We’d book our flights through those cities to save money and/or earn extra miles. Unfortunately, unintended loopholes such as these can create an opportunity for loyalty program fraud. When looking to limit loyalty fraud, we recommend a three-pronged approach: Prevent-Detect-Monitor.
Loyalty continues to be the number one strategy used by brands for retaining customers and lifting behavior. Aimia’s own clients see on average a 7x+ ROI and increased engagement among members, making their investment in loyalty worth it. When considering starting or revamping your loyalty, however, you need to determine if your program will be currency based (think points or miles) or not. If you decide a currency is imperative to your strategy, be prepared to partner with your C-suite, financial and legal teams on an ongoing basis. Today, regulation around points liability is becoming stricter, as governments want to protect the financial interests of consumers.
There's no doubt that unique customer experiences are the future of retail. More and more, marketers are cultivating their strategies to deliver personalization . The age of individualized communications is at hand - and with the continuing evolution of technology and data insights, retail marketers have endless opportunities to cultivate their highest value customers for growth. This whitepaper explores the tactics and strategies marketers can use to not simply keep their brands alive - but to lead the marketplace with innovation, distinction and opportune interactions to better serve their customers.
What happens when a "trend" becomes a "must-have"? Personalisation has been a buzzword in the loyalty marketing realm for the past couple of years, yet it's no longer something that is a nice to have; in the age of the empowered customer, brands need to better serve customers an individualised experience.
As brands struggle to differentiate their programs from others, "loyalty" as a retention strategy quickly becomes a glorified engagement and discounting program. This obviously cuts into margins and chips away at the consumers' trust of the brand.
Acquiring a new member to your loyalty program is a great sign of growth; it’s a sign your member base is getting larger and therefore your revenue and margins are growing. That’s the usual perception and the reason why many marketers spend a disproportionate amount of their budgets on various forms of Above the Line (ATL) communication to attract new members. In reality and in most cases, this is the wrong approach. Yes, creating awareness of your brand and loyalty program is absolutely necessary and this is clearly required to attract new members. However, don’t think that your job is done once the new member picks up their loyalty card and walks through your door for the first time.
With the customer truly driving brand interactions, we as marketers need to talk to our customers individually and personably. Bringing this 1:1 communication to scale is the challenge, but it’s one in which we’re narrowing the gap each day. The following are ways in which advanced segmentation is bringing us closer to this goal.
This segment covers
- Removing data silos and using analytics to develop a holistic view of the customer
- How brands can evolve by focusing on the customer
- The 5 milestones to ideal in growing your highest value customers
- Identifying behavioral segments and evaluating customer value at each step of the customer journey
- Influencing consumer behavior through meaningful communication
Topics: Customer Data & Analytics, Customer Experience, Omni-channel | Digital, Personalization, Financial Institutions, Telco, Loyalty Trends, Loyalty Strategy, Customer View, Customer Engagement, Segmentation, Retail, Travel & Hospitality, CPG, SmartJourney®