2022’s hottest marketing technique came in the form of loyalty programs. As the world battled to recover from the pandemic’s lasting supply chain problems and the greatest inflation in 50 years, merchants resorted to creative means to lure and keep consumers.
We witnessed several adjustments to perks, incentives, and redemption conditions for businesses with current membership programs. In contrast, others were thought of as making it harder for customers to convert points they had worked so hard to achieve.
As we look forward to a more stable 2024, let’s zero in on enhancing your very own customer experience by rewarding customer loyalty.
What we’ve learned about loyalty and CX (Customer Experience) in the last four years
Customer Involvement and Interest are Important… Crazy Important!
To begin, loyalty programs provide experiential advantages. They are a tactic for keeping the interest among customers between purchases and for establishing a strong, emotional connection.
Retailers have been obliged to adapt as consumer views have evolved in the past five years, seeking more than simply discounts including reevaluating their program offers. This isn’t expected to change in the years to come. Brands should regularly assess their programs to ensure that their perks balance transactional and experiential elements.
If your program is geared toward monetary incentives (such as discounts and rebates), do research to establish which “experience perks” are most appealing to your members. Remember that a balanced reward protocol is great practice for loyalty and should constantly develop and adjust with your members.
Awareness and Concern for the Environment is a Priority for Many
Customers nowadays are more concerned about social and environmental issues.
According to research, 78% of buyers prioritize environmental standards when making purchasing decisions. When younger generations increase their purchasing power, they will choose with their pockets in mind, choosing shops whose ideals and values are similar to theirs. They aren’t likely to make judgments merely based on the tag.
Loyalty programs have begun to react, from awarding points for bringing their own reusable bags to making contributions with each new membership.
Customer demand will increase in the coming years and membership provides an exceptional chance for companies to distinguish themselves by seeking all means to legitimately “give back” in a manner that connects with their values.
Customers want it “personalized”
A good and effective loyalty program must constantly strive to provide a tailored, omnichannel experience. This won’t likely change in the years to come.
As per surveys, at least 50% of customers expect offers to always be tailored to them. Out of that, 60% express that an “emotional connection” with their favored brands is important to them. Personalization isn’t all that difficult to achieve because by using select member information, anyone can create anticipatory and relevant offers that engage members (and get them talking, as well).
Third-Party Cookies, a thing of the past?
In the coming years, brands should go beyond the proverbial, personalized email. Personalization should be fun when it comes to offers, product suggestions, and content. While going the personalized route is a gamut, expect the intensity to change by brand. What an authentic bespoke approach does is build trust and show members that something significant is being done with the valuable information they are sharing.
Next year, we can all anticipate programs that aim to aggressively collect more information about current and potential customers.
Many platforms today offer quizzes, polls, and “free analysis” that make collecting information fun and engaging for members so it doesn’t feel intrusive at all.
Web3, Metaverse, Blockchain, and Partnerships in the coming year
Hot topics since 2022, these innovative technologies pressured brands to appreciate the changing landscape and include them in their business strategies. Next year, expect brands to continue discovering opportunities for their businesses and their customers.
For partnerships, we saw leading brands enter the landscape as they made their presence felt in the metaverse, some even integrating tokens into their rewards programs. In the next three years, retailers will carry on tinkering with these types of technologies.
Businesses know that it’s not enough to simply have their own NFT, brands must take into consideration how these promote their overall brand value and deliver value and brand affinity.
As the economy fought to bounce back post-pandemic, brands got artistic about how to keep clients’ attention (and a share in their customers’ wallets) while managing their budget. For many, that translated to distinct strategic alliances. We began to see more alliances across retailers where members could link their memberships to boost their rewards. These complementary alliances include coffee shops, spas, and even airlines where members could earn points and receive exclusive benefits and products when they link their accounts.
These partnerships are serving members better by expanding the value of membership outside the core expertise of their brand into an adjacent but still relevant field that gives value. We predict this trend to continue in 2024, as businesses explore methods that give more without increasing gross amounts to their profit and loss statements. The opportunities for loyalty programs are endless, and partnerships that provide a value exchange may boost member engagement, profitability, and retention for both firms.
Are Publicity Stunts still in?
When the founder of a successful outdoor gear firm revealed that he would be giving away his business, it made headlines. Normally, this would have been viewed as a PR gimmick, but that was not the case. instead, the company’s founder had a good reputation for environmental activism, and the brand had been recognized for years as a sustainable store; it was this background that made his unconventional action so real and persuasive.
And sincerity isn’t simply a catchphrase. 71% of US customers say they want to support firms that they believe are “authentic.” In 2024, we are bound to see more businesses evaluate their purpose and what it is in them that makes them relevant in the lives of their consumers.
Membership should be an extension of the whole brand, reflecting its goals and values. The way a membership program is given to members via its rewards and features reflects a brand’s uniqueness and authenticity. Management and leaders should learn from this by revising their programs this year to reflect more of their overall brand values.
The future may be unpredictable, but we may make educated guesses about the changes that are coming to loyalty by studying larger social, economic, and environmental patterns. The dynamic nature of a membership program necessitates continuous adaptation to meet the needs of its participants. This change will continue in 2024 as consumers seek out genuine brands, discover new digital domains, and expect more value from their memberships.
Get your business ready for 2024 and beyond.
Talk to us.
cxperts is a global provider of multichannel demand generation and customer engagement services. We have presence onshore, nearshore, and offshore in the USA, the Philippines, Colombia, Guatemala, and soon, Mexico and South Africa.
We partner with companies to help provide exceptional customer care that builds brand loyalty through our brick-and-mortar centers and work-from-home models leveraging top resources from the areas where we operate.
cxperts is an omnichannel customer experience (CX) provider that delivers exceptional CX for brands of all sizes. Our contact center solutions cover all facets of customer experience and business process outsourcing, from customer care, white glove services, and technical support to sales, collections, and back office.
Within our modern contact centers in the Philippines, Guatemala, and Colombia, we provide sustainable, life-changing careers to hundreds of cxperts around the world. On top of that, our work-at-home solutions give brands the flexibility to benefit from a limitless pool of exceptional talent.
