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BizReport : Loyalty Marketing : July 18, 2016

Expert: How to choose the right loyalty program

Choosing the right loyalty program can either push a business to the next level or leave them on the same treadmill for years. One expert offers her advice on choosing the right loyalty program.

by Kristina Knight

The right loyalty program offers more than a financial incentive.

"Building customer loyalty is more than a "program." It's about placing your customers at the center of your business strategy so the value proposition that you are providing aligns with the priorities of your customer. Financial incentives are a nice instant reward for customers, but the best loyalty programs are constantly engaging consumers in ways that matter to them, beyond one transaction. Whether it's including games on a brand app, hosting events or other personalized experiences for loyalty members or sharing tailored content regularly, a loyalty program should emphasize customer engagement, service and experience instead of discounts alone," said Nancy Berg, VP of Client Services and Partnerships, Kobie Marketing.

It's not one-size fits all.

"Companies should use consumer data to identify who their best customers are and who has the greatest potential to become a more frequent customer. These customer segments should be rewarded in a tailored way based on what's important and relevant to them. Providing true value is critically important for customer retention--and it's especially useful when issues occur that affect the customer experience so they're less likely to abandon that brand without returning. Loyalty serves as a trust-builder for consumers. But companies need to make sure what they are offering to their customers is perceived as valuable vs. taking a mass approach like sending out mass coupons when they make a mistake. To maximize value and truly connect with customers, companies should leverage data to give tailored awards to their best and most promising customers," said Berg.

It's mobile.

"Consumers expect the ability to access responsive apps and websites and to be constantly engaged from any device in today's marketplace. Gone are the days when customers carried around several different loyalty cards in their pocket. Today technology enables the ability to have ease of access. Customers should be able to pull out a mobile loyalty wallet, and enter their Membership ID to pull up their profile, or use an app to track points. With technology and tools that make constant engagement a reality for consumers, the brand relationship is much stronger," said Berg.

Tags: ecommerce, Kobie Marketing, loyalty marketing, loyalty program, rewards program

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  • Wu Han

    This is great advice! If only Kobie had the technology to accomplish it. Out of date ETL development wont be able to keep up. Someday Kobie will discover what an API is.



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