No one shops these days without expecting something back. From SkyMiles to Kohl’s Cash to coupons good for free hugs, rewards are an assumed part of the consumer experience. The average U.S. adult belongs to 16.7 programs — and the loyalty management market is worth over $4.43 billion.
With so much loyalty jammed into the market, how does one stand out? Do you go with points? A tiered, paid, or value program? Originality can rule like a Burger King. A compelling, unique rewards program can be the deciding factor in where — and how — money is spent.
Here’s five reasons why your merchants should be wise in the ways they reward loyalty.
1. Prioritize personalization.
It’s not just knowing their name and the kind of car they drive. Customers want to know they’re known — that they’re treated as individuals. McKinsey & Company found that over three-quarters of customers feel frustrated by loyalty programs that don’t offer a more personalized experience.
2. Be different.
If personalization is the spark, a buzz-worthy hook is the flame that makes a program hot. 91% percent of consumers feel that loyalty programs are all the same. Perks beyond the expected cash back or discounts are a powerful differentiator. Transactional benefits can keep them coming back in the short term, but they may not make a program stand out — or stand the test of time. Which leads us to …
3. Experience matters.
Unique rewards create a deeper relationship. GM Rewards offers one-of-a-kind trip packages. Members turn points into experiences: Taking a race car on the track, attending the Indy 500, or learning to drive an off-road course. The idea is that experiences are indelibly emotional — they create a bond between brand and consumer — and they linger longer than $50 off your next purchase.
4. It’s better to give than receive.
A growing number of consumers — now 4 out of 10 — say they want to use their rewards to benefit others. Giving them value options that fit their worldview — charities in which they’re interested or unique giving ideas — plays into the personalization and differentiation angles.
5. Play along.
Engaging consumers with gamification — rewarding adventures of their own making — can drive powerful results. They choose from a variety of point-earning activities. The more they play, the more they earn. It might be making a purchase, contributing a review, referring a friend, taking a poll, or following the brand on social media. Additional gamification — like winning accomplishment badges along with points — can further capture their interest, making the program a part of a routine they look forward to.
Are your customers eager to do more with loyalty and rewards? North American Bancard can help. As a leading payment processor, we can provide robust data and analytics that offer insights into consumer behavior, allowing them to provide the kind of personalized, customized programs that consumers crave.
A strong program can be the key to creating powerful, lasting relationships between your merchants and their customers. Reward them — and yourself — with loyalty that lasts.
