Is it me or is everyone launching a new loyalty program?

By: Ray Chelstowski

You’re not. Almost every day news breaks about a major marketer either launching a first-ever loyalty program or relaunching an existing program with additional benefits and opportunities to earn rewards. Why is this happening?

It seems that the pandemic forced even the most resistant consumers to embrace e-tailers. Not being able to visit brick and mortar stores pushed everyone to shop on line. In turn brands quickly learned that the quickest way to avoid reducing their proposition to price was through loyalty. This propelled the loyalty industry from its “earn and burn” legacy to a place where technology and data are allowing brands to create personalized offerings and experiences that establish real value and repeatable engagement.

This momentum quickly caught the attention of QSR’s like McDonald’s and Burger King who had not previously embraced loyalty. Not only did these companies scale quickly, but they beta tested new technologies that provided their locations with the tools to personalize specials and leverage earned points in the moment. Their advancements caught the attention of everyone and soon not only did we see QSR’s follow the leader, but folks in the B2B space decide that loyalty might work in their construct as well.

Lastly, research shows that the fastest growth in loyalty participation has been coming from 16-24 year olds. I can’t think of any consumer brand that wouldn’t want to begin a relationship with a consumer within this age group. The potential overall customer lifetime value against an investment in this demo is extraordinary. To capture this group’s attention marketers are leveraging their interest in gamification, a brand’s social sense of responsibility, and experiential rewards.

7 out of 10 marketers are apparently reconsidering their loyalty programs. The developments mentioned above are difficult to ignore, especially when they are tied back to quarterly earnings report gains. If you are as well, let’s have a conversation. Loyalty has moved well beyond punch cards. Annex Cloud can quickly demonstrate just that through case study review within our portfolio of blue-chip global brands.

rchelstowski@annexcloud.com

Comments

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