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This episode of Amazing Business Radio with Shep Hyken answers the following questions and more: What role do loyalty programs play in enhancing customerengagement? How can companies leverage loyalty programs to generate additional revenue?
Ambience isn’t just ‘nice to have’; it’s part of what keeps customersengaged – without them even realizing it. User-Friendly Loyalty Programs Nobody needs another loyalty card that sits gathering dust at the bottom of a wallet. A great rewardsprogram is intuitive, easy to join, and worth the effort.
To keep customersengaged, it is important for a loyalty program to focus on their needs & aspirations to ensure they feel satisfied in their relationship with a brand. So, focusing on making customer retention rate stay high can create a tremendous competitive advantage for a brand and lead them to growth.
Develop Reward and Loyalty Programs Loyalty programs aren’t just about offering punch cards or reward points (although sometimes, they can be). Theyre really meant to create excitement that keeps customersengaged. Theres tons of room for creativity when you offer a loyalty program.
Hotel giant Hilton recently dropped the H from its rewardsprogram , replacing the linguistically puzzling Hilton HHonors with an easier to pronounce version, Hilton Honors. The new rewardsprogram will be the first in the industry to allow members to combine points and money for a hotel visit. I like these changes.
The Qubit Future of Travel Report 2016 shows that investing in customer satisfaction can be equally as important as competing on price points. Many businesses in the travel industry have tried out loyalty schemes and rewardprograms with varied success. The post How Important is Customer Service in Travel and Tourism?
For centuries, merchants have been offering special tokens that repeat customers could redeem for goods. Today, stamps, vouchers and coupons have mostly been replaced by apps and digital methods of tracking customerengagement. We worked with a major airline to help update its loyalty scheme app and website.
Enormous budget airline brands and luxury hotel chains alike are seeing increased competition. Top-rated airlines like JetBlue have managed to combine reasonable prices with quality service and experience. Traditional messaging from airlines has been broad-strokes driven, trying to catch the most people to ensure the most tickets sold.
With your CX data in hand, marketers and CX Professionals need to highlight what is most immediately concerned for their customers. For a retailer, this might mean rethinking stocking practices so that customer feedback lets you keep up with the latest trends before they fizzle out. Connect channel activities and customer experiences.
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.
Even though Plenti failed[i], Amex’s effort showed belief in the coalition model by one of the biggest names in rewardprograms. The “Marriott More” program allows its members to earn and redeem points on everyday retail purchases[iii]. It began as the “frequent flyer program”. better customerengagement.
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 rewardcustomers and 59% think all brands should offer one.”.
This means that loyalty programs are now a more important channel for customer acquisition and retention than ever before. Customer frequency is partly determined by the nature of your business. On the other hand, 60-70% of customers may be motivated to redeem in the currency of a partnered airline or hotel.
Really, for those relatively few brands achieving impressive levels of customerengagement, it’s breath-taking how fast the industry has progressed in such a short time. Asia Miles, the loyalty program of Cathay Pacific airline group, teamed up with Accenture to do just this. This effort is a marked improvement.
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. A loyalty program should be relevant to 80% of customers. How can we call that success? A little more context.
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. Devaluing your points has a negative impact on all your customers – including the best ones. They may be worth.5
The incredible degrees of customerengagement that have been achieved, should inspire and guide the efforts of loyalty marketers in the coming year. Voxi is the ‘youth brand’ of Vodafone, whose highly successful VeryMe rewardsprogram has previously been praised by Currency Alliance. A disloyal generation?
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.
Bribing customers is easy and, as with most easy initiatives, not very profitable. 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. For starters, it isn’t financially sustainable.
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. So this should be a warning for any big grocery loyalty program.
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