In today's highly competitive business world, it's not enough to simply offer a high-quality product at a reasonable price. As many companies are beginning to realize, marketing initiatives also play a key role in the success of their operations. When marketers implement a unique and highly customizable loyalty rewards programs, they can help their clients cut through the clutter that today's consumers must navigate to discover organizations they're passionate about.
Building a better loyalty system
One consideration that may play a crucial role in creating a truly enhanced loyalty program is how consumers want to shop. Buyers are used to performing many tasks through multiple channels in the modern-day technological age, so while they might walk into a brick-and-mortar shop to buy an item, they could end up paying with a mobile phone at the register. Businesses that don't give consumers the freedom to choose how they want to spend their money are increasingly falling behind in the wake of those that offer an experience that's tailored to each individual's preferences.
But this need for flexibility goes beyond just standard transactions. According to Loyalty 360, shopping solutions firm Loylogic sees the need for loyalty programs to also give consumers the leverage to make decisions, from the way they receive benefits to how they redeem them. Robert Moerland, VP of business development at Loylogic, told the source that options are key, especially as individuals become more comfortable with using virtual currencies. Marketers must consider that in many cases, shoppers are mixing media in a sense, taking advantage of digital coupons at the register or entering codes found on physical ones at ecommerce websites.
"If they can burn [loyalty currency] on everything and all purchases, this will increase the relevance of loyalty currency and help more specific segments that aren't as engaged," Moerland explained to the news provider. "Every loyalty program will look at how they can become relevant and how to differentiate from competition and expand its relevance."
While Moerland said that increased liquidity may be helpful to organizations looking to boost loyalty engagement, this doesn't mean that consumers aren't always on the lookout for specific deals that meet their needs. In fact, loyalty rewards programs that include a variety of coupons while also taking into account shoppers' preferences for certain channels can be highly effective.
Juniper Research forecast that in 2013, the number of mobile coupon recipients will rise by approximately 30 percent. This represents a shift in how consumers take advantage of deals, the research firm pointed out, as people are beginning to store coupons on their devices more frequently "rather than redeeming straightaway."
For marketers, this change represents a great opportunity to drive engagement and acquisitions. Loyalty 360 reported that Moerland cited some interesting statistics: In a recent survey, 60 percent of respondents said that they would prefer flexibility over value in a loyalty rewards program. Crafting a truly enhanced loyalty rewards program depends on allowing consumers to feel in control. By focusing on offering personalized discounts that can be redeemed in multiple ways, marketers can help any company achieve higher ROI and lower customer attrition rates thanks to a more engaged client base.