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The best-known loyalty programs are made up of many partnerships – such as United Airlines and Hilton Hotels, or Emirates and Marriott. The majority of existing partnerships at big loyalty programs are brokered with one goal in mind: creating more value for the most frequent customers.
For an airline, it may be as simple as streamlining the boarding process, a major source of stress for travellers. For example, many retailers send a welcome email after you sign up for their rewardsprogram. Connect channel activities and customer experiences.
Rewardprograms still have an important part to play in this effort; but they are only part of the picture. YouGov data from the UK shows that even the youth demographic – supposedly disloyal – thinks that points programs “are a good way for brands to reward customers and 59% think all brands should offer one.”. [iii].
More enlightened marketers, on the other hand, see points as a way to keep score of customer actions at many different touchpoints along complex customer journeys. Collecting data at more touchpoints is very useful. Asia Miles, the loyalty program of Cathay Pacific airline group, teamed up with Accenture to do just this.
Airlines will spend a good portion of 2020 proving that their programs are fundamental to minimizing the environmental impact as the industry grows. At the Loyalty Surgery this year, IBM’s Greg Land said that their modern martech trial at Malaysia Airlines performed extremely well, delivering a 43% improvement in ROI.
Emotional loyalty: add incentives along many touchpoints in customer journeys. The reality is that there are a lot of people slapping each other’s backs about incremental gains, while most brands still have less than 1/3 rd of customers active in their loyalty programs. Define the strategy.
Such ‘loyalty’ programs today are actually just rewardsprograms: ‘you do this and I will do that.’ This is normally in the form of static rules which apply a flat 1%+/- reward across the board. Second, emotional loyalty involves rewarding your customers for many more touchpoints than just purchases.
I recently had dinner with the Strategic Partnerships Manager for one of the 10 largest airlines in the world and he confessed that they have customer data in three separate systems that each generate customer communications, but do not share data with each other. Many organizations have attempted to build Points Banks from scratch.
Loyalty had evolved into a fairly segregated marketing function, but many of this years’ entries were more comprehensive, loyalty-enabled marketing programs. As more holistic marketing initiatives, loyalty mechanics were harnessed to drive and measure engagement across channels, and across many more customer touchpoints.
Banks have been in and out of rewardsprograms for decades – but their focus ebbs and flows depending on the economic cycle as well as the regulatory framework. Compounded in Europe by the slashing of interchange fees, banks have been left with reduced margins from which to carve out rewards value[v]. More money, fewer monies.
Customer care – Conjoint/MaxDiff can help improve your support and care operations, with insight into what components of your customer care program are most important to your users, as well as what elements they’d be willing to pay more for. Learn how conjoint analysis and MaxDiff work. Hospitality.
This means that loyalty programs are now a more important channel for customer acquisition and retention than ever before. A low-frequency business would be an airline (for most people), or brands selling occasional purchases such as refrigerators, cars, laptops, shoes, gala dresses, etc.
Broadly speaking, most of the chains’ loyalty efforts have been in proprietary, albeit digitalized versions of the original S&H program: collecting in order to redeem for rewards, some digital couponing, and pushing out offers via a mobile app. As a result, the supermarket’s NPS has gone up and up.
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