If you look at your wallet right now, you should be able to see 2-3 cards – your ATM card, your ID card, and for most people, a loyalty card. This loyalty card can either be for your nearby grocery or convenience store.
Most loyalty programs use the points system which consumers can exchange for discounts and gift items.
Now imagine this: You have more than just one loyalty card – you have one from your go-to airline, one from your trusted pawnshop or internet cafe, et cetera. Each of those loyalty programs have their own points system which you earn based on how frequent you are there.
Yes, you’ve been frequenting them, and chances are, they provide the same offers as each other. If that was a real thing, then that is a problem. “Many of the current schemes just reward normal behaviour or routine, not loyalty.” This is what the Deloitte Consumer Review states in their report on Customer Loyalty published July 2017.
The report them proclaimed this: “The traditional customer loyalty scheme has become a ‘tired’ concept that needs to be reinvented.”
What does the report say about loyalty programs providing similar schemes? “Loyalty should be about more than just collecting points. Loyalty programmes lose their significance when they are surrounded by similar schemes.”
So what does businesses need to do? “Loyalty is often tied to routine, so any innovation that simplifies a routine while enhancing the customer experience is a reward in itself.”
In short, to cope up with the number of existing loyalty programs, businesses need to make their loyalty programs easy to do and make uniquely theirs.
Join the 8th Customer Lovefest Conference this November 14-15 at Tower Club Makati. For more information, contact Ex-Link Events at (+63 2) 8633-0153 / 8633-0088, +63 920 924 2532 / +63 920 981 4376, firstname.lastname@example.org or facebook.com/customerlovefest.