Many of the least effective loyalty programs feel like a whip the brand is applying to get customers to buy more. The Great Loyalty Reset Report from 500 Friends/Merkle contains many fresh insights, but I find this insight about conveying a customer experience of 'gratitude' is the most compelling. How do we show our customers continuous gratitude?
Loyalty 360: Most Consumers Focus Loyalty Program Attention on Five Retail Brands, 2017-Jul-6 by Jim Tierney interview of Sara Hogan, director, growth marketing, for Merkle Loyalty Solutions Group
Why is there such a disconnect between loyalty program managers and consumers?
Hogan: Fundamentally, I believe that brands see loyalty programs as a revenue generator and consumers see loyalty as a way for a brand to thank them for their business. This creates a significant disconnect. While the program manager has more consumer data available than ever before, meeting consumer expectations is becoming an increasing challenge.
From The Great Loyalty Reset 2017 report:
Engaging with your customers is difficult if you don’t know who they are. Connecting with customers is incrementally more challenging if their purchases and brand interactions tend to occur only at limited times of the year.
At 400,000+ members strong, the UGG Rewards program is successfully addressing both challenges – and simultaneously positioning the iconic boot/fashion brand for a market increasingly influenced by younger consumers, social influence, online recommendations and built-in, seamless loyalty....
Today, the program not only enables and simplifies data collection, it rewards consumers for providing it. At sign-up, the rewards program now captures basic data about customers – name, age, location, mobile number, email and optional information, such as birth date.... They earn points when they sign up, link social media accounts, post on Twitter or Pinterest, create or share a wish list, or post an online review, for example.