In the past few years, the concept of customer loyalty has evolved to keep pace with the digital age. While many traditional loyalty strategies have now become obsolete, some have gained more prominence. As we inch closer to the end of the year, we take a look back at some of the biggest trends that defined the domain of customer loyalty in the past year:
Multichannel Programs
It is safe to presume that the age of only card-based loyalty is officially over. A multichannel program that engages the customer using various touch-points and offers a seamless experience is essential for any loyalty program to succeed. As a matter of fact, physical cards have given way to virtual cloud-based accounts that tie-up the mobile, email, and in-store shopping experience. Similarly, real-time notification of rewards and redemption has made the process transparent. Thus, a Customer Loyalty Program Software solution helps businesses engage customers using different channels, and in the process gather richer information and data as well.
Corporate Social Responsibility
Customers want brands to go beyond lip-service when it comes to social causes. Being socially responsible has been identified to be one of the most important influencers of customer loyalty, and are even willing to pay extra for products and services from companies that have demonstrated a social and environmental conscience. Furthermore, pledging an allegiance to a social cause serves as an excellent way to generate goodwill and connect emotionally with customers and facilitate on-ground tangible change in the society. Loyalty management programs of several leading companies have tied up with developmental organisations and allow customers to donate their loyalty points as well.
Premium Loyalty Programs
Defying conventional wisdom, premium loyalty programs have proven to be popular with customers, provided they see utility and returns in spending the extra buck. Leading the pack of premium loyalty programs is Amazon, with Amazon Prime being an excellent example of motivating customers to pay for membership in a ‘premium’ loyalty program. Several companies, new and old, have started experimenting with the idea of implementing a premium paid customer reward program; something that was almost unheard of just a few years ago. The future of premium loyalty programs is likely to further alter the loyalty landscape in the near future.
Intelligent Technology
Last, but far from least, is the advent of intelligent technological tools and systems in the loyalty domain. From data analytical tools to chatbots, the last year has seen a multi-fold rise in AI-based tools being used to personalise rewards. In the coming few years, one can expect loyalty solutions to further enhance data collection and analysis features, and pave way for a hyper-personalised experience. The fact that customers are willing to provide personal data and information in return for customised services and experiences has bolstered the rise of intelligent cloud-based Customer Loyalty Program Software solutions, like Loyera.
What are some of the ways in which your business has used Customer Loyalty Program Software solutions in the recent past? How do you think customer expectations from loyalty programs and rewards have changed in the last one year? Get in touch with us and let us know!