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Reimagining Loyalty In 2022.

 


By: Hilton Barbour

Reimagining Loyalty in 2022

We love making predictions as much as the next guy. Recently we made some predictions about which NFL teams would go through to the Superbowl and today we’re licking our wounds (and making a few e-transfers to our colleagues) so we’re a little gun shy on the bold predictions front.

That being said, there is growing evidence that loyalty marketing is having a real Renaissance and that many organizations are taking a serious look at how to embed loyalty at the center of their efforts. Sectors that may previously have scoffed at loyalty programs as a means of attracting and retaining customers are taking a keen interest in piloting new programs and new ideas.

Why the sudden interest?

Within some sectors loyalty is seen as a way to prevent customer attrition (or erosion) to other channels and other sectors. If you’re a traditional Bricks & Mortar retailer, the surge in DTC models and the rise in online purchasing are trends that you can’t escape. And trends you need to blunt if you’re going to survive.

Other sectors, like the sports sector we covered previously, are facing a perpetual yo-yo of trying to operate during Covid. “Are we actually open for business today?” seems to be a daily question for owners and leaders in several sectors. Having a loyalty program gives businesses a legitimate reason to stay connected and engaged with their customers while stores and stadiums open and shut in a frenetic fashion.

Yet others have been loyalty cheerleaders for decades and the notion of enticing and rewarding their customers is built into their DNA and basic operating models. Turning that initiative off would be like starving them of oxygen, particularly as it is so foundational to their customer rapport and reputation. Our friends in travel and hospitality are prime examples of this phenomenon.

Regardless of the reasoning what is a reality across all the organizations calling Kognitiv is that the same ol’, same ol’ just aint going to cut it in 2022 and beyond. For those businesses in struggling sectors, the old economics and modelling of how programs are funded and executed needs to be significantly re-imagined. For businesses getting into loyalty for the first time, and many are dipping their toes in, the classic constructs of rewards and recognition need a new flavour if they’re going to connect (and retain) a new set of consumers.

And, let’s not forget the role of consumers in this too. Ho-hum, uninspiring and lackluster programs aren’t going to be sufficient to get them to join or stay. While there may be some sentimental attachment to programs of old, the next generation of loyalty programs not only have to sing in terms of rewards, recognition, access, and genuine exclusivity but they’d better be data-savvy and utilize progress attitudes toward data privacy and personal data usage.

So many moving parts for loyalty marketers and CMO’s to consider. Each with the ability to make or break your program. And, more importantly, make or break your critical customer relationships.

What say you?

 Help us out guys and give us your predictions. Not about the Super Bowl (but we’ll happily take those) but about which industries have the ability or desire to re-imagine loyalty in 2022.

Take our weekly quiz here.

We promise to share the results in next week’s newsletter and on our LinkedIn channel too.

ray.chelstowski@kognitiv.com

hilton.barbour@kognitiv.com

 

 

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