Fundamental rules to keep in mind about Loyalty


Customer loyalty programs are growing among organizations, that are considering new ways creating new offer.

According to a article published by ZDNet, mobile applications are becoming an extremely convenient and easy method for delivering customer loyalty programs to customers.

according to Gartner research,(Top 10 Strategic Predictions for 2015 and Beyond: Digital Business is Driving “Big Change”) Mobile shopping at online sites accounts for more than 95% of mobile purchases today. But also using the phone for mobile payment at physical stores.

will growing to than $400 billion in 2018, in purchases using mobile devices.

With the use of a mobile application, organizations can provide real-time program alerts, instant push notifications and most importantly, a hand-held, mobile way to deliver customer benefits. This tactic helps keep valuable loyalty information on hand for customers whenever and wherever they choose to do business.

Also, at device that we are using, the first step for a winning loyalty programs, is earn the trust of customers:

people would rather be asked what they need before being told how to get there

For example, Adidas, help to understand people their goals and motivations.

the brand recently asked dozens of women to photograph something that motivated them to work out and the result challenged to work out and the result challenged the brand’s preconceptions about people’s goals and informed new product development

But, what makes a customer loyal to a Brand?

Launching a rewards program is the second step in nurturing long-term customer loyalty.

The Starbucks rewards program is quite simple and offers neat perks to those who consume a lot of their product.

A simple way to tell customers they are important to you is to offer them personalized service.

That is what the Starbucks reward program does. Members of the program are categorized into three levels – Basic, Green and Gold, which is the highest. Gold members are appreciated for their loyalty through perks like free beverage customization, free trial offers, free refills on coffee and tea on every visit, a personalized gold card, personalized coupons and offers that are valid across all Starbucks outlets and

Becoming a gold member is an appealing option, and people are encouraged to spend more on coffee and get more stars to get their own, personalized Starbucks gold card.

In a talk TED in 2013 indicated that 30% of daily transactions in Starbucks are made using Starbucks’ Star points.

The coffee shop has also introduced a new reward where gold members buying whole or ground packaged coffee at any retail outlet can earn points and exchange them for a hot cup of coffee or even a free muffin at the Starbucks outlet. This is an excellent strategy that the company has used to make sure that customers remain loyal to the Starbucks brand even if they are nowhere near a Starbucks coffee outlet. No wonder Starbucks has such a loyal customer base!

In addition, many loyalty programs employ some level of data-driven marketing designed to deliver more personalized offers.

A recent report from a survey conducted by a loyalty program firm Colloquy and a ticket selling platform Fanxchange has confirmed that a majority of Americans are dissatisfied with the reward choices that are being offered in their loyalty programs.

According to Edelman report, 87% of people want more meaningful relationship with brands

Mass marketing programs are becoming less effective literally by the minute. One-size-fits-all strategies are getting diluted in the ether. If you’re not relevant, the customer stops listening. Any measure of trust that may have been built up is easily lost.

These are but a few fundamental rules to keep in mind…to be continued



Posted on 31 March 2015 in Loyalty

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