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How to Improve Loyalty With Customer Engagement

How to Improve Loyalty With Customer Engagement

Discover the game-changing strategies that supercharge customer engagement in loyalty programs.

Dharsh Kannan

MarTech Blogger | July 06, 2023


Establishing a successful loyalty program necessitates a substantial allocation of resources, making it imperative to follow through diligently. While initial customer enrollment may be swift if your message resonates with them, the true measure of success lies in sustaining their engagement as loyal members. In today’s fiercely competitive business landscape, many companies prioritize customer acquisition as a growth driver and often overlook the crucial aspect of customer retention. However, this approach fails to acknowledge the undeniable fact that retaining a customer is far more cost-effective than acquiring a new one! Moreover, loyal customers have the potential to generate more revenue than their initial purchase. Isn’t this an overwhelmingly persuasive incentive to prioritize customer retention?

Types of Loyalty

Understanding how to enhance customer engagement is the first step toward retaining loyal customers. Loyalty can be categorized into the following types.

1. Transactional Loyalty

Transactional loyalty programs are designed to reward customers for their purchases, offering a range of incentives such as points, rewards, and discounts. These programs focus on a customer’s repeated patronage and continued engagement with a company due to the value they receive from each transaction. By engaging customers and providing them with tangible benefits, transactional loyalty programs encourage loyalty, driving long-term engagement and strengthening the overall customer journey.  

2. Behavioral Loyalty

Inherent human tendencies toward convenience often shape behavioral buying patterns. Brands can leverage this by implementing a customer loyalty program to influence customers’ purchasing decisions. The program offers various incentives, such as bonus points for specific products purchased at designated times, triple points for purchases exceeding a certain threshold, and additional points based on buying frequency. By employing such strategies, brands can effectively achieve their goals, which may include boosting average order values or promoting specific products.

3. Social Loyalty

Social loyalty programs encourage customers to accumulate points by participating in various social media activities such as sharing content, liking posts, and following brands. 

By doing so, these programs facilitate increased social media buzz, enhance overall marketing efforts for the brands, and effectively engage customers in the realm of social media.

Consequently, when customers are prepared to make their next purchase, the brand remains at the forefront of their minds, resulting in improved brand recall.

4. Engagement Loyalty

Expanding upon the foundation of social loyalty, engagement loyalty programs offer incentives to customers who participate in actions such as signing up for emails, subscribing to newsletters, completing surveys, and more. This approach aids brands in gaining a profound understanding of their customer base, resulting in improved customer segmentation and enhanced targeting. Furthermore, it empowers brands to establish more personalized and effective communication channels with customers across multiple platforms.

5. Emotional Loyalty

Emotional loyalty is defined by the deep connection and attachment customers feel towards a brand, based on the positive emotions and experiences they associate with it. It goes beyond transactional loyalty and is built through meaningful interactions and personalized gestures. Brands can leverage emotional loyalty by nurturing genuine relationships with their customers, such as by engaging in personalized communication, acknowledging special occasions, and offering surprise and delight gifts that exceed expectations. These actions demonstrate care, build trust, and foster a sense of belonging, strengthening the emotional bond between customers and the brand. Emotional loyalty stands as the paramount form of loyalty that businesses need to cultivate in their customers.

Strategies to Enhance Participation in Loyalty Programs

To achieve an A+ level of engagement in your loyalty program, here are some strategies that can truly elevate your efforts and ensure customers remain highly engaged and loyal.

– Add Gamification Features to Boost Engagement Rates

Incorporating gamification elements in loyalty programs hooks customers by tapping into their innate desire for competition and achievement. 

For example, the unpredictability of spin the wheel games can trigger a sense of anticipation and pleasure, while conquering milestones as a team fosters a sense of belonging. 

Ultimately, infusing these gamification features in loyalty programs can create a more enjoyable and rewarding experience for customers, increasing their engagement and loyalty.

– Encourage Point Spend to Minimize Dormancy

In the realm of loyalty programs, dormancy unveils a puzzling predicament where customers let their tier benefits gather dust. To tackle this, it’s suggested to improve rewards by balancing long-term and short-term incentives. Regular communication reminding customers of their point balances is crucial. Moreover, offering a diverse range of attainable rewards like points-plus-cash choices, discounts, free samples, exclusive audience giveaways, and charitable donations can sustain customer interest and engagement.

– Wake up Your Inactive Customers

Begin the journey of re-engaging inactive members in a loyalty program by diligently analyzing their behaviors and preferences, allowing you to unveil tailored incentives. Employ precise communication channels like email or mobile notifications to establish contact, presenting captivating offers, exclusive rewards, or customized promotions. Lastly, generate a sense of urgency by introducing limited-time offers or time-sensitive benefits, prompting swift participation and reigniting their interest in the loyalty program.

– Cultivate Customer Advocacy

Word-of-mouth endorsements from friends and family carry a higher level of trust compared to recommendations from businesses. By implementing strategies that encourage customers to refer their acquaintances, enterprises can effectively augment their customer acquisition rates. Referral programs not only amplify engagement, customer lifetime value, and retention but also cultivate a strong affiliation with the brand, leading to an increased frequency of purchases.

– Boost Engagement and Make Sure Customers Stick Around

Loyal customers form the backbone of a successful business, which is why a low engagement rate in loyalty programs can be a significant source of worry for brands. By harnessing the strategies outlined above, you can effectively ensure that your members not only sign up for your loyalty program but also make the most of its perks. This will lead to enhanced customer retention, increased frequency of purchases, and ultimately, greater profitability for your business. 

Optimize your customer loyalty program with The Perx Platform – a cost-effective solution that supercharges user acquisition, in-app engagement, and reduces churn. Book a demo today to learn more about how The Perx Platform synergizes gamification, behavioral science, and adaptive AI to elevate your consumer engagement and loyalty strategy. 

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What is Loyalty Marketing and How It Can Help Brands

What is Loyalty Marketing and How It Can Help Brands

Unlock the secret behind how loyalty marketing can drastically increase your brand value

Harwin Kaur

MarTech Blogger | July 02, 2023


In this ultra-competitive digital era, attempting to differentiate yourself from the crowd comes with its own set of unprecedented challenges. Brands are constantly striving to retain the attention of their existing customers while simultaneously trying to concoct unique methods to acquire new ones.

Enter: loyalty marketing, a powerful approach that has completely transformed the way in which businesses connect with their customer base. Leveraging loyalty marketing strategies can aid brands in forging stronger bonds with their customers, fostering brand advocacy, and ultimately gaining a competitive edge in the marketplace.

What is Loyalty Marketing

Loyalty marketing is a carefully curated strategy designed to retain existing customers by offering enticing incentives like exclusive perks, free rewards, and discounts. It’s an effective method for brands to express gratitude and reward the support of their valued patrons. With a focus on nurturing lasting relationships, loyalty marketing ensures that customers feel appreciated, valued, and motivated to stick around for the long haul.

Why Loyalty Marketing Is Important 

At its core, loyalty marketing is the secret ingredient that transforms ordinary customer-business connections into extraordinary, lasting relationships. Its primary aim is to entice customers and indulge them with an immersive experience. Additionally, loyalty marketing enables brands to collect valuable customer data through various programs, which can be leveraged for targeted marketing campaigns and personalized experiences. This results in an increase in customer lifetime value and ultimately boosts overall brand profitability.

Loyalty Marketing

A study conducted by Accenture revealed that businesses experience a significant surge in revenue, ranging from 12 to 18 percent, from loyalty program members compared to non-members. This shows the substantial impact loyalty marketing strategies have on driving higher revenue and highlights the significance of having a well-designed loyalty marketing strategy.

Loyalty marketing isn’t just about fleeting transactions; it’s about creating a symbiotic bond that caters to customers’ needs, desires, and aspirations.

Integrating it into your brand strategy is a game-changer that will  set your business apart from the rest, emphasizing the true power of long-term advocacy over short-lived transactions with both existing and new customers.

How to Incorporate Loyalty Marketing into your Brand Strategy

Acquiring a loyal customer base cannot be achieved overnight. Instead, it arises as a result of a personalized and well-designed loyalty marketing strategy. This nudges consumers to choose your brand over any other due to the strong affiliation they feel with it, looking past comparative factors like pricing.

This loyalty is nurtured through a series of positive interactions that establish trust over time. The ultimate objective is to transform customers into brand advocates, making loyalty a critical component of long-term business success. Enhancing customer loyalty not only sustains customer purchases but also amplifies brand advocacy to reach a new and wider audience. Below are some ways to achieve this:

Loyalty Programs

Loyalty programs are arguably the most important aspect of loyalty marketing as they provide a structured framework to incentivize and reward customers for their repeat purchases. These personalized programs are curated to create a sense of exclusivity and appreciation for loyal customers, encouraging them to choose your brand consistently. There are several types of loyalty programs with a slew of different offerings. 

One type of loyalty program is focused on tiered rewards, where customers are placed into different tiers based on their level of engagement or spending. As customers ascend through the tiers, they unlock increasingly attractive benefits and privileges. This tiered structure creates a sense of progression and aspiration, driving customers to reach higher levels and enjoy exclusive perks reserved for top-tier members. 

Another type is a points-based loyalty program, where customers earn points for each purchase they make. These points can then be redeemed for various perks, including but not limited to discounts, free products, or exclusive experiences. This provides a sense of accomplishment for customers as they accumulate points toward valuable rewards. This is just the tip of the iceberg when it comes to the thousands of loyalty programs that brands across the globe have designed.

Social Media

Social media platforms like Instagram and Facebook play a vital role in loyalty marketing by allowing brands to directly connect with their customers. A study by Sprout Social revealed that 91 percent of consumers believe social media has the power to connect people. Additionally, 78 percent are in favor of brands using it to bring them together.

Social media platforms can be leveraged to share exclusive content like behind-the-scenes glimpses, sneak peeks, or exclusive promotions. This creates a sense of exclusivity, strengthening the bond between the brand and the customer.

Additionally, social media platforms serve as communication channels to provide customer support. Brands can address inquiries, resolve issues, and offer assistance in a timely manner, showcasing their commitment to customer satisfaction. By facilitating interactions between customers, brands can strengthen their connection with customers. Overall, actively engaging with customers on social media platforms will allow your brand to establish trust and value customer input, fostering brand loyalty. 

External Partnerships

Developing external partnerships with other merchants is a highly effective strategy in loyalty marketing. By collaborating with complementary brands, businesses can expand their offerings for customers and attract a new audience. One way to do this is to collaborate on a joint loyalty reward program which will allow customers to earn and redeem rewards across both brands. This encourages cross-purchasing and boosts customer engagement. 

Additionally, cross-promotion can be an efficient tool to be used to leverage each other’s customer base and reach a new demographic. Some ways to achieve this can be through organizing joint marketing campaigns and collaborating on content creation. Such partnerships strengthen brand loyalty by providing customers with more value, variety, and unique experiences. Strategic collaboration enables brands to expand their reach, tap into new markets, and build stronger connections with customers, resulting in long-term success.

What You Should Know

In conclusion, loyalty marketing is a transformative strategy that drives brand advocacy by fostering strong customer-brand relationships. By implementing personalized loyalty programs, harnessing the power of social media platforms, and forging external partnerships, businesses can achieve sustainable success in the long run.

If you’re interested in diving into the world of loyalty marketing, consider the self-serve Perx Platform which empowers businesses to transform fleeting customer interactions into long-lasting bonds through the synergy of behavioral science and adaptive AI. Book a demo today to discover how the Perx customer loyalty and engagement platform can elevate your brand strategy.

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4 Top Benefits of Loyalty Programs

Top 4 Benefits of Loyalty Programs

Give your business an edge in the current market by unlocking the potential of loyalty programs

Harwin Kaur

MarTech Blogger | June 23, 2023


Businesses often get swept up in the pursuit of new customer acquisition to boost brand awareness, expand their customer base, and drive up sales. While these are important goals, it’s equally important not to overlook the value of existing customers. It has been proven time and again that loyal customers contribute just as much, or even more, to a company’s overall profitability. 

Bain & Company, theorizes that a small 5% rise in customer retention rates can result in a significant 95% boost in overall profitability. This highlights the crucial importance of prioritizing the retention of existing customers for businesses that aspire to achieve long-term success and maximize their profits. This raises the question: how can businesses develop strategies to hold onto these customers? The answer is simple – implementing a loyalty program. 

However, before diving into the manifold advantages of such programs, it’s crucial to understand what a loyalty program is.

What are Loyalty Programs?

A loyalty program aims to cultivate repeat business by offering incentives such as discounts, reward points, or exclusive perks. Through this, businesses encourage continuous customer engagement with their brand. To create an effective loyalty program, businesses should prioritize customer preferences in their marketing efforts. This approach enhances customer satisfaction and builds long-term relationships, providing a competitive edge. Customers feel valued as they receive personalized rewards for their spending, making them more likely to pledge loyalty to the brand.

The term “loyalty program” is broad and can be customized to fit a business’s needs and preferences for its customer base. However, certain types of loyalty programs have been widely adopted with a proven track record of effectiveness. These include: 

  1. Points-based systems where customers redeem points earned for rewards such as discounts, free products, or exclusive experiences
  2. Tiered programs which allow customers to move up through different tiers based on their level of engagement with the brand, with each tier offering more exclusivity and valuable rewards
  3. Game-based programs where customers can engage with the brand to earn rewards by playing games or completing challenges 

Effective loyalty programs often adopt a hybrid system that combines different types of the above engagement tools and rewards to offer a more diverse range of benefits to customers. 

By implementing a loyalty program, businesses can leverage the fundamental factors that drive customer loyalty. A study by Bond Brand Loyalty found that loyalty program members are 70% more likely to spread the word about a brand than non-members. The proof is clear as day (or in this case, the statistics). Not only do customers receive rewards for promoting the business, but they also organically perform acquisition marketing on behalf of the business! 

Key Benefits of a Loyalty Program 

Now that we’ve established the significance and value of loyalty programs for businesses, let’s delve into some of the top benefits of implementing one.

◉ Cost-Effective Strategy 

Acquiring new customers typically involves investing a significant amount of resources in marketing and advertising campaigns to generate potential customers. This can include activities such as email marketing, paid search ads, and social media campaigns among other forms of promotion. Conversely, retaining existing customers entails providing them with a positive customer experience, personalized communication, and loyalty rewards to continue doing business with the company. 

Research shows that acquiring a new customer can cost 5-25 times more than retaining an existing one, depending on the industry and customer segment. Additionally, existing customers are more likely to make repeat purchases, refer others to the business, and spend more even during economic downturns. Therefore, boosting customer retention rates through loyalty programs can be a cost-effective strategy for businesses.

◉ Build a Customer Base that Values Your Brand Beyond Price

Customer loyalty programs help businesses differentiate themselves by connecting with customers’ emotions and offering a more personalized experience. Businesses can build a strong bond with their customers by gathering and acting on feedback, constantly communicating, and focusing on curating a pleasant customer experience, which demonstrates their value for the customer’s opinion. Giving customers that extra attention a personalized experience is particularly important in today’s market, where the ease of being able to compare prices between competitors has given rise to customers that are more price sensitive than ever. 

By appealing to customers’ emotions through customized rewards and recognition, businesses can build stronger bonds with their customers who feel appreciated and encourage repeat purchases. Loyalty programs encourage customers to become less price sensitive and focus more on the curated experience provided by the business. This will allow them to recognise the brand’s value and nudge them to pay a premium, thus giving the business a competitive advantage.

◉ Acquire Valuable Customer Data

An often-overlooked benefit of loyalty programs is that they provide businesses with an opportunity to gather valuable data about their customers. By tracking customer behavior and preferences through the program, businesses can gain insights into their customers’ purchasing habits, preferences, and interests. This information can help businesses tailor their marketing strategies to better meet the needs of their customers.

Additionally, the data gathered through loyalty programs can help businesses identify patterns or trends in customer behavior over time. This information can be used to make more informed decisions about future product development, pricing, and other relevant business strategies.

◉ Build Loyal Brand Ambassadors

Loyalty programs help to unlock the power of existing customers and turn them into committed brand ambassadors. They transform an average customer into a business’s most valuable asset – one that can spread the word about the brand and its products to their trusted network. This generates more revenue for a business through word-of-mouth recommendations than any advertising or marketing campaign can. 

Advocacy is the most powerful marketing tool. A loyalty program assists in creating a network of advocates that will not only stick with the business but also actively promote it. By providing incentives for referrals, a business can demonstrate the value it places on existing customers while attracting new ones. 

Factors to consider

Developing a successful loyalty program involves careful consideration of several areas: 

  • It is crucial to define the program’s primary objective, such as improving customer retention or driving sales. Setting specific and measurable goals will help to design a program that aligns with your business objectives.
  • Determining the program’s type is essential, whether it will be tier-based, game-based, or a hybrid, and make decisions regarding rewards in advance. This includes defining how customers can earn points or advance through different stages, as well as establishing clear guidelines for redeeming their rewards.
  • To ensure the success of your loyalty program, it is important to focus on effective promotion. Consider carefully strategizing your communication and marketing efforts to deliver a message that emphasizes the program’s benefits. This can be achieved through utilizing a range of marketing channels, including social media and email to create awareness and actively encourage customer participation.
  • Lastly, it is critical to consider setting a sustainable budget to ensure stability and avoid loyalty debt. This can be done by evaluating the estimated costs associated with implementing the loyalty program and calculating the expected return on investment. 

In conclusion, executing a well-designed loyalty program is crucial in allowing businesses to curate and expand a fiercely loyal customer base for sustainable success. Personalizing and tailoring the program to match the needs of its target audience is the key to its effectiveness.  

Consider starting your journey to a robust loyalty program with The Perx Platform, that promises to supercharge user acquisition and enhance customer retention rates. Request a demo today to witness all its unique features and functionalities, and explore how you can use them to your advantage!

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Best Ways to Reward Customers

Best Ways to Reward Customers in 2023

Re-invent customer rewards in today’s ever-evolving martech landscape

Harwin Kaur

MarTech Blogger | June 20, 2023


Throughout the course of business history, brands have relentlessly pursued the goal of customer satisfaction, recognizing its pivotal role in fostering long-term growth and prosperity. The benefits of achieving this objective are far-reaching and varied, spanning increased repeat business, positive word-of-mouth referrals, and enhanced customer loyalty.

Thus, it is to no one’s surprise that reward loyalty programs have become ubiquitous among businesses, from major players like Amazon, Walmart, and Sephora to small local ones. As a result, it can be daunting to find ways to differentiate your program and stand out from the crowd in a tangible and meaningful way.

Nevertheless, there are some unique and efficient ways to achieve this. Here is a curated list of 7 effective ways to reward your loyal customers in 2023.

1. Acknowledge Special Occasions

Customers feel more inclined to stay where they feel appreciated. One simple way for businesses to achieve this is by adding a personal touch to their loyalty program by acknowledging a customer’s special occasion like a birthday or an anniversary.

Customize your digital rewards system to keep track of important dates like birthdays, sign-up anniversaries, and any other relevant ones.

Doing so will allow you to curate personalized incentives that cater to their specific preferences based on their previous purchases.

Research by Epsilon shows that 80% of consumers are more inclined to make purchases when offered a personalized experience by brands.

Giving rewards, such as discounts or free gifts, to commemorate customers’ special occasions is an effective way to build a personal connection with them that extends beyond the generic annual holiday sales.

2. Reward Consistency

One of the biggest hurdles in providing discounts to customers is deciding the appropriate amount and to whom to offer these. However, businesses can overcome this challenge by identifying customers who have exhibited loyalty to their brand and regularly make purchases. Thanks to a variety of analytical tools and algorithms at our disposal today, identifying these customer segments is easier than ever before. 

By providing incentives, such as discounts, businesses can encourage customers with a proven track record of purchases to continue doing so while simultaneously building a more devoted customer base. For instance, businesses can consider rewarding customers when they achieve specific spending milestones or maintain a minimum frequency of purchases to appreciate the consistency of these customers.

Encouraging reviews and referrals can be a powerful strategy for increasing customer engagement and expanding your customer base. As the current landscape becomes increasingly saturated with marketing and advertising campaigns, word of mouth remains a valuable and trusted marketing tool. A study by McKinsey found that word of mouth is the primary factor behind 20-50% of all purchasing decisions.

Positive reviews and referrals can help establish trust between your business and potential customers, highlighting the best aspects of your brand.

Offering incentives like discount vouchers, cash rewards, or services can be an effective way to get customers excited about spreading the word.

3. Offer Exclusivity 

A creative way to reward customers is by providing them with a unique and exclusive experience, beyond just physical rewards or discount vouchers. By granting early access to sales exclusively to loyalty program members, they are given the first opportunity to purchase products and services at discounted rates before they are available to the masses.

Taking it a step further, businesses can also consider offering limited experiences, such as invitations to exclusive product launch events or auctions that cannot be simply purchased. Such initiatives make loyal customers feel valued and appreciated, creating a special bond with the business, and increasing the likelihood of them returning.

4. Partner with Merchants

Partnering with businesses serving the same customer segment is often overlooked as a key strategy to boost customer acquisition, resulting in a seamless and beneficial experience for all stakeholders.

A well-designed loyalty program allows you to offer customers an enjoyable customer journey. However, when you forge partnerships with businesses that cater to a similar customer segment, you create a comprehensive experience that expands beyond just what your business has to offer and covers a lot more ground. 

A partnership with other businesses broadens the range of rewards you are able to offer customers as well as allows you to increase customer acquisition by tapping on the customer base of your partners. Through strategic alliances within a loyalty program, you provide customers with a seamless and unified journey that benefits all stakeholders involved.

One of the biggest hurdles in providing discounts to customers is deciding the appropriate amount and to whom to offer these. However, businesses can overcome this challenge by identifying customers who have exhibited loyalty to their brand and regularly make purchases. Thanks to a variety of analytical tools and algorithms at our disposal today, identifying these customer segments is easier than ever before. 

By providing incentives, such as discounts, businesses can encourage customers with a proven track record of purchases to continue doing so while simultaneously building a more devoted customer base. For instance, businesses can consider rewarding customers when they achieve specific spending milestones or maintain a minimum frequency of purchases to appreciate the consistency of these customers.

5. Gamify Rewards System

Gamifying rewards refers to incorporating game-like elements, such as challenges, achievements, and levels, into a rewards system to enhance customer engagement and motivation. For example, prompting customers to play simple games like ‘Scratch-A-Card’ or ‘Spin-The-Wheel’, to unlock their rewards adds an additional layer of excitement.

An advantage of gamifying rewards for loyalty programs is that it enhances customer engagement and motivation.

By incorporating game elements such as challenges, points, levels, and rewards, businesses can make the loyalty program more enjoyable and interactive for customers. 

It provides a welcome break from the monotony of simply pressing a singular button. This gamified approach taps into the natural human inclination for competition, achievement, and fun, leading to heightened participation and a deeper relationship between customers and the brand. This reinforces their loyalty to the business.

6. Offer Customers Options

Giving customers multiple options and allowing them to choose when providing rewards for loyalty programs aids in empowering them and catering to their individual preferences. By offering a range of reward options, businesses acknowledge the diverse needs and desires of their customers instead of allocating prizes that may leave some feeling dissatisfied. Diversifying the way rewards are presented through different games in one way to do so.  Another way would be to analyze the preferences of the customer and present them with different types of rewards like a voucher as opposed to a free gift.

This approach fosters a sense of autonomy and personalization, enhancing the overall customer experience. It also increases the likelihood of customers finding value in the rewards they receive, resulting in higher satisfaction and a deeper level of appreciation for the brand.

Why is it necessary to be innovative?

The importance of finding innovative ways to issue customer rewards cannot be overstated. By embracing creativity and constantly evolving reward programs, businesses can cultivate strong and lasting relationships with their customers. Innovative rewards not only drive customer satisfaction and loyalty but also differentiate a company from its competitors, boosting its brand reputation and market position. 

In conclusion, the implementation of innovative approaches enables businesses to gather invaluable data and insights, facilitating the customization of their offerings and marketing strategies with greater efficacy. Ultimately, by prioritizing innovation in customer rewards, companies can unlock unexplored potential and boost customer loyalty. To achieve this, consider The Perx Platform which empowers businesses to transform transient and fleeting customer interactions to meaningful relationships by leveraging behavioral science and gamification to enhance customer engagement and loyalty. Book a demo today to learn more about how the Perx customer loyalty and engagement platform can elevate your loyalty program.

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Best Incentive Ideas to Promote Positive Customer Behavior

Top Reward Ideas to Promote Positive Customer Behavior

Brands that provide unique incentives beyond run-of-the-mill loyalty programs can leave a lasting imprint on customers

Dharsh Kannan

MarTech Blogger | June 16, 2023


Imagine walking into a coffee shop and being greeted with a warm smile and a surprise reward for being a loyal customer. The barista hands you a small card with a handwritten note thanking you for your patronage and offering you a free drink of your choice on your next visit. This simple gesture not only makes you feel appreciated but also motivates you to continue supporting the business.

By offering incentives beyond the typical loyalty program, businesses can create a memorable customer experience and foster a strong relationship with their clients. These incentives don’t have to be extravagant, but they should be thoughtful and tailored to the individual customer to create a sense of personalization and exclusivity. Ultimately, these small gestures can have a big impact on customer engagement and loyalty, leading to long-term success for businesses.

Customer Incentives: What are They?

Picture this: you’re a customer on a quest, and every time you achieve a milestone or complete a task, the brand rewards you with incentives. These rewards act as a powerful motivator, tempting you to take on more brand-building challenges, such as purchasing their products, spreading the word to your friends, or even becoming a brand ambassador.

The brand carefully curates these incentives based on its marketing objectives and customer data analytics, ensuring they’re providing the most value to its customers. But don’t be fooled – loyalty and incentives are not one and the same.

While both are valuable tools in a brand’s arsenal, loyalty is a deep-seated emotional connection between a customer and a brand, whereas incentives are more of a fun and exciting way to encourage engagement. So let’s dive deeper into the differences between these two essential brand-building strategies.

Loyalty Programs vs Customer Incentives

Loyalty programs and incentive programs, despite often being used interchangeably, have unique functions. Loyalty programs are intended to reward and keep existing customers, while incentive programs are aimed at boosting sales by rewarding customers who achieve predetermined goals.

While both programs offer rewards like gift cards and coupons, incentive programs may offer more valuable rewards, such as merchandise or travel vouchers, to build stronger customer loyalty. Loyalty programs reward customers for every transaction, while incentive programs only deliver rewards when specific targets are met. Depending on the brand’s objectives and desired level of customer involvement, one or both programs may be utilized.

How Customer Incentives Can Boost Customer Loyalty Programs

Implementing a customer rewards program offers numerous benefits, such as increasing customer retention and generating referrals to your brand. Below are some of the advantages you can expect by offering the appropriate incentives to your customers.

• Customer Satisfaction

By offering incentives to your customers, you demonstrate your appreciation for their choice to buy from you. This fosters a sense of satisfaction and loyalty that keeps them coming back for more of your products or services. However, it’s crucial to ensure that your consumer incentive rewards are targeted toward the right customers. By identifying and catering to the needs of your most valuable customers, you can maximize the impact of your rewards program and further strengthen customer loyalty.

A thriving marketing strategy relies on the foundation of data and analytics, but gathering data can be a challenging endeavor. 

Implementing an incentive program can facilitate data accumulation, which in turn can be leveraged to create a targeted marketing program that resonates with your desired audience.

By using this approach, you can craft more compelling incentives that align with your potential customers’ preferences, resulting in greater appeal and engagement.

• Customer Retention

It’s a well-known fact that retaining current customers is much less costly than acquiring new ones. By offering suitable incentives, you can cultivate customer loyalty and ensure they remain committed to your brand in the long term.

To keep customers interested and encourage repeat purchases, consider offering attractive rewards. Additionally, using the consumer data you collect can help you tailor rewards that are more personalized, which ultimately leads to better customer retention.

• Word-of-Mouth Marketing

An effective incentive program can ignite enthusiasm among customers, prompting them to become brand advocates and spread the word to their network. This type of incentive strategy can be particularly valuable for lead generation, as these leads can be cultivated into loyal customers through engaging brand-building activities.

Top Reward Ideas to Adopt for Your Loyal Customers

Here is a curated list of options to help you adopt a unique customer incentives strategy that will help you stand out from the crowd.

1. Incentivizing Referrals

Referral programs are a popular method for brands to implement incentive strategies. Customers who refer other customers or assist with lead generation are incredibly valuable. By providing incentives for these customers, you can create a loyal group of brand advocates who will enthusiastically promote your brand to a wider audience.

2. Exclusive Access

Offering exclusive or early access to sales is a powerful customer incentive. Customers appreciate being treated as VIPs and having the opportunity to purchase products or services before they become widely available. This incentive can create a sense of excitement and urgency, driving sales and fostering a sense of loyalty among customers.

3. Free Shipping

Free shipping is a popular incentive program among many brands, as customers are often deterred from purchasing products due to high shipping costs. By offering free shipping, brands can encourage customers to make repeat purchases and build loyalty. This strategy can help brands increase sales and create a positive customer experience.

4. Discounts

Discounts are a popular incentive for motivating customers to make a purchase by offering lower prices. However, they can sometimes negatively impact a brand or product’s perceived value if overused or too widely available. When used strategically and sparingly, discounts can still be a powerful tool to increase customer value and drive sales.

5. Sweepstakes

Sweepstakes are an enjoyable and cost-effective method to engage with customers. A well-designed sweepstake can motivate customers to take a smaller step, such as making a purchase, signing up, or attending an event. With numerous incentives to choose from, it can be challenging to select the right ones. Brands should engage customers by offering a combination of incentive types, including a blend of published and unpublished rewards.

6. Subscription

Brands frequently encounter difficulties with registrations and subscriptions. One effective approach to promote customer subscriptions is by providing an incentive for subscribing to your brand. Subscriptions can also serve as an incentive in themselves. An effective method is to extend a discount or exclusive offer solely to subscribers. By presenting a reduced price or a special deal, brands cultivate a feeling of exclusiveness and value for subscribers, heightening the appeal for customers to join.

Loyalty Points system

Loyalty points incentivize customers to return and make repeat purchases, which helps businesses build a loyal customer base. Redeeming loyalty points for rewards provides a tangible benefit to customers and makes them feel recognized and rewarded for their loyalty. Loyalty programs can also increase customer engagement and spending by offering bonus points for larger purchases or specific products.

Maximize Your Loyalty Program With Effective Incentives 

It’s essential to understand the importance of satisfying your customers and providing them with compelling reasons to remain loyal. The question is, what incentives will work best to achieve this goal? Work with your team to brainstorm ideas for rewards, referral marketing campaigns, incentive programs, and effective examples of reward programs that can benefit your business.

Take your time with this process and be willing to experiment with different campaign concepts. Creating a successful loyalty program requires paying close attention to critical factors like gamification and personalization, which can significantly impact customer engagement and retention.

Neglecting these elements can hinder your progress. To optimize your customer incentive program, consider using The Perx Platform. This cost-effective solution can supercharge user acquisition, in-app engagement, and reduce churn. Book a demo today to learn more about how The Perx customer loyalty and engagement platform can elevate your incentive program and improve customer retention.

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Playing to Win: Using Gamification to Foster Customer Loyalty

Playing to Win: Using Gamification to Foster Customer Loyalty

Unlock unparalleled customer loyalty by designing a tailored customer loyalty program that drives long-term brand advocacy

Dharsh Kannan

MarTech Blogger | June 12, 2023


The fascination with games extends beyond personal enjoyment and has found its place in the corporate world. Businesses now embrace gamification to cultivate lasting customer engagement. By integrating gamification into loyalty programs, brands have the opportunity to create a profound emotional connection between customers and their brand. Through immersive gameplay experiences, customers are motivated to actively participate and empowered to take decisive actions, such as providing feedback and insights. Gamification encourages frequent interaction with the brand, leading to increased purchases and a deeper understanding of customer preferences. Now, let’s delve into the specifics of gamified mechanics, explore the underlying consumer psychology, and uncover the transformative impact of gamification in loyalty programs.

Improving Customer Loyalty Through the Incorporation of Gamification in Loyalty Programs

As the demand for enhanced customer experiences grows, the global gamification market is projected to reach $40 billion by 2024. By incorporating fun and gamification into loyalty programs, brands can boost customer engagement, brand awareness, and customer lifetime value. Gamification is especially effective in catering to Millennials and Gen Z, who are tech-savvy and have shorter attention spans. 

It allows brands to gather valuable insights into customer preferences, lifestyles, and favorite brands while receiving feedback. Companies should keep in mind that, in order for customers to want to participate in their gamified loyalty program, they need to offer enticing rewards in exchange. Gamification empowers brands to drive customer loyalty and create personalized experiences by encouraging recurring behaviors, incentivizing actions, and fostering engagement beyond mere transactions.

The Psychology Behind Gamification: Aligning Expectations and Driving Loyalty

Understanding the consumer psychology behind gamification is essential for implementing it effectively. By aligning gamified mechanics with customer expectations, you can drive loyalty and long-term engagement. Here’s a step-by-step approach to implementing gamification successfully.

  1. Objective: Prioritize enhancing the customer experience when incorporating gamification into your loyalty program. By empathizing with your customers and understanding their expectations of your brand, you can maintain authenticity and deliver a tailored experience.
  2. Analyze: Examine the behaviors of your most valuable customers and experiment with gamification strategies targeted at this group. Evaluate the outcomes to identify which actions to incentivize and develop suitable rewards. This analysis will enable you to design a loyalty program that resonates with your customers and encourages long-term engagement.
  3. Strategize: Identify the gamified mechanics that best align with your customer experience goals. Prioritize those mechanics for maximum customer engagement and loyalty. Each mechanic should serve a unique purpose, offering distinct benefits to your customers.
  4. Assess: Evaluate the success of your gamified loyalty program by establishing realistic baseline measurements. Assess penetration and frequency rates among highly engaged members to gain insights into the program’s impact and effectiveness. This assessment will help you refine your approach and optimize customer engagement and loyalty.

Gamification transcends simplicity, necessitating the establishment of precise objectives, achievement thresholds, and desired behaviors. The prioritization of delivering an exceptional customer experience becomes indispensable to cultivate loyalty.

Must-have Gamified Mechanics in Loyalty Programs 

In the realm of loyalty programs, gamified mechanics have become essential tools for engaging and retaining customers. 

Let’s explore the must-have gamified mechanics that every loyalty program should consider implementing for maximum impact and success.

1. Spin a Wheel

Spinning a wheel for points or prizes is universally enjoyable, creating an engaging and interactive experience that captivates customers and fosters loyalty. It combines elements of chance, anticipation, and reward. The element of chance plays a significant role in the appeal of spinning a wheel as humans have an inherent fascination with uncertainty and the unknown. It triggers a sense of excitement and adventure, as customers eagerly anticipate what outcome they will receive. This unpredictability keeps them engaged and curious, as they hope to land on a high-value prize or achieve a favorable outcome.  

2. Challenges & Badges 

Drive consistent customer involvement by empowering them with a sense of fulfillment when they conquer challenges. Motivate customers to earn rewards by successfully completing tasks or challenges, and grant them badges that provide extra advantages. Challenges provide clear objectives and a sense of achievement, tapping into customers’ intrinsic motivation and goal orientation. Badges act as visual rewards, offering social recognition and fueling competitiveness. Businesses can leverage challenges and badges to enhance the customer experience and drive desired behaviors.

3. Gamified Surveys & Quizzes  

Gamified surveys and quizzes help brands gather a wider pool of customer data, enabling a better understanding of preferences. By adding gamification elements, brands make the data collection process engaging and enjoyable, resulting in higher participation rates and more accurate insights. This allows brands to tailor customer engagement strategies to align with customer preferences.

4. Social Interactions

Having a strong social media presence is essential for companies today to connect with customers and gain valuable feedback. Customers appreciate the opportunity to share opinions, experiences, and ideas, making word-of-mouth a powerful tool. Encourage customers to become brand advocates by offering rewards for referrals.

5. Leaderboards

Humans have an inherent inclination for tracking progress, and leaderboards can effectively tap into this inclination to motivate users. By implementing leaderboards, you can encourage users to engage more frequently with your program, actively participate in competitions, and earn desirable rewards. Users can earn points and rise through the ranks by completing various actions, such as making purchases or writing reviews. The presence of leaderboards enables customers to gauge their performance relative to other users, providing a sense of comparison and achievement.

Harnessing the Power of Play

Implementing gamification in loyalty programs can effectively engage customers by tapping into their competitive nature and desire for winning. By creating a fun and interactive experience, businesses can encourage regular customer interaction and foster brand loyalty. Paying attention to critical factors like gamification and personalization is crucial for a successful loyalty program, as neglecting these elements can hinder customer engagement and retention. 

Explore The Perx Platform, a cost-effective solution that enhances user acquisition, in-app engagement, and reduces churn, to optimize your customer loyalty program. Request a demo today and discover how the Perx customer loyalty and engagement platform can elevate your loyalty program and improve customer engagement.

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The Cookieless Future - and how to tackle it

Hansel and Gretel can stay on, but their cookies will have to go next year

The Cookieless Future - and how to tackle it

Hansel and Gretel can stay on, but their cookies will have to go next year

And the cookie crumbles – Brands need a new compass to navigate the cookieless future

Amrith G.

SVP, Marketing & Customer Analytics | May 18, 2023


A quick 101 before we start: For those who are still wondering why there is no reference to Hansel, Gretel, Disney or chocolate chip cookies in the rest of this blog – these are not cookies that you eat but your computer does. Dubbed the magic cookie, HTTP cookie, a web cookie, an Internet cookie, or a browser cookie, this cookie is filled with information. Information about you, where you’ve been, your preferences, etc. Brands target these cookies to bet on where you would be next. So again, not Chips Ahoy! from Walmart.

Google set to phase out cookies by 2024

So, earlier this year, the father, the son, and the holy spirit of our present-day digital lives, Google took a ‘proactive’ step to get on the right side of you, me, and the 5 billion others who use it or the 500 million who yell ‘hey google’ at a device every month.

Here is my attempt at translating Google’s move: “Hola people of the world, it’s time we stop taking you and your data for granted, so here goes – Before the politicians figure out what we do for a living and before we get called for another congressional hearing, we’ve decided to let go of a key carrier of your personal information – ‘the cookie’ – We did say we will put it to rest this year. But, since we’ve not figured out a way to live without it, we’ve decided to extend it to 2024.

What? No Tracking? In a way, yeah. 

So, does this mean…

…out go those display ads that follow you so loyally to every nook and corner of the web, the text ads that think they are personalized and follow you into your Gmail Inbox, and the rest of the gamut?

Well, not quite.

This act on the cookies may be a step in the right direction as a good samaritan but they are not saints. With the smartphone being the single common denominator in the connected world, consumers thrive on hyper-personalization. Be it ads, promotions, or finding the right pair of ‘Nike Air Force 1s’ for the weekend, we live in an instant gratification world. So, no, we don’t expect them to be saints either.

As an alternative, Google is trialing a ‘less intrusive’ slightly more acceptable version of the cookie. It’s called Federated Learning of Cohorts. In perfect valley fashion, they’ve given it an acronym – FLoC. FLoC is supposed to run locally and analyzes your browsing behavior to group you into a cohort of like-minded people with similar interests (and doesn’t share your browsing history with Google). Don’t fret, your browsing history is still safe; just don’t forget to clear them once in a while if you visit questionable URLs though. That cohort is specific enough to allow advertisers to do their thing and show you relevant ads, but without being so specific as to allow marketers to identify you personally.

Here is another perspective: What do brands, conglomerates, governments, ethical hackers, and even your next-door neighbor have in common? 

We are defined by our preferences and choices.

Answer: They know more about you than you think they do. So take a moment of pause as consumers and deal with that fact. On the other hand, data points such as your favorite laundry detergent, cosmetics, food, brands that meet your needs, and brands that meet your wants are those we anyways flaunt on social media for the world to judge. Our preferences and choices are what make us complete.

These data points form an integral part of the mobile-first, instant-gratification world we all live in. We are so used to something that we like a pop-up on our screen trying to nudge a purchase action from us.

When I browse for information, I still want it to be crisp, and I still want it to be tailored to my tastes. I don’t want to see what the Kardashians are up to on my 10 minutes browse of Flipboard on a Monday morning metro ride to work (or when I am working from home), no that would be for my weekends. 

The answer is a tested and proven YES. It’s called First-party Direct-to-Customer Data Collection. Typically, brands use a way or two to collect this from the horse’s mouth – the customer. To start with, an agency conducts a survey. Or the same agency launches a bespoke interactive campaign built for this purpose and dangles an incentive at the end of the survey. Such activities require a lot of gray matter to come together, taking months to plan and weeks to launch. By the time it’s launched, the campaign or the data set required to collect loses strategic relevance – because, you know, we live in a world of the 8-second attention span and every 10th piece of information we consume is a video of a human or a cat that does something unbelievable.

You may wonder, ‘Hey, you said yes earlier and gave a discouraging and time-consuming  solution to prove it. Is there a way to combat the cookie-less future?’

Sorry for driving you nuts with the last 100 words. Yes, there is a solution. Depending on how you wield it, it has the potential to become the sharpest tool in your B2C marketing arsenal. On the back of this solution, some of the largest global brands in the banking, telecom, insurance, and retail industry have collectively driven over 3,000,000,000 customer-brand interactions till date. For those who are still counting the zeros – it’s a billion.

Brands improve their CAC, drive in-app transactions, boost revenue per active user, and ultimately reduce churn by keeping customers coming back for more. All by transforming their digital customer engagement strategy with the help of concepts such as game theory, pleasure principle, and instant gratification that reward customers for their every action.

Collectively driving over $400M in incremental revenue, the solution of choice for 3 of the top banks, telcos, and even some of the well-established marketing agencies in Asia is the Perx autonomous loyalty and engagement platform.

The fusion of Perx and Open AI is the captivating recipe simmering in our product kitchen. With intelligent campaign recommendations, predictive rewards inventory management, and ChatGPT’s automatic idea generation, we’re propelling customer engagement and loyalty into an autonomous realm fueled by AI and data. Connect with us to find out how you can beat the cookie-less future by simply re-engaging your existing customers and engaging the new ones better.

In a nutshell, the decision by Google to phase out cookies has thrown the industry into a frenzy. While it may mean an end to the tracking that has become so ubiquitous, it also presents an opportunity for brands to rethink their customer engagement strategy, the percentage of marketing budget towards net-new customers vs existing customers, and their ROAS (Return On Ad Spend).

In today’s 8-second attention span world, brands can create a personalized customer experience, increase customer acquisition, and preserve privacy by focusing on building meaningful, long-lasting relationships with their customers. Rather than sustaining transient, transactional relationships, it’s time to foster deeper connections with the millions your business is serving.

The cookieless future brings unprecedented challenges to the entire brand servicing industry and not just B2C brands they serve. Agencies of all sizes are facing a daunting brick wall, hindering their ability to target the right audience, measure and attribute ad spend, manage ad inventory and pricing, and navigate privacy and compliance concerns. This leaves them in a perilous position.

To remain relevant in this changing landscape, the $592 billion global advertising industry must embrace a marketing technology stack that empowers first-party data collection. Additionally, agencies need to leverage innovative approaches such as gamification, AI, data, and analytics at a campaign level. By adopting these strategies, agencies can adapt to the cookieless era, ensuring their continued success in an evolving digital advertising ecosystem.

It’s time to seriously think about how to stay relevant in the cookieless future

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Perx Achieves Exciting Milestones: 35 Million Users and 3 Billion API Calls

Perx Achieves Exciting Milestones: 35 Million Users and 3 Billion API Calls

Perx Achieves Exciting Milestones: 35 Million Users and 3 Billion API Calls

Perx Achieves Exciting Milestones: 35 Million Users and 3 Billion API Calls

Perx recently achieved two milestones, cementing our commitment to transforming customer engagement

Dharsh Kannan

MarTech Blogger | May 16, 2023


Perx Technologies recently achieved two significant milestones that exemplify our dedication to transforming the customer engagement and loyalty space. With a user base of 35 million and a remarkable 3 billion API calls surpassed, Perx continues to push boundaries and redefine loyalty. 

35 Million Users: Redefining Loyalty and Rewards Management

Reaching this milestone is a testament to the unwavering dedication, passion, and tireless efforts of the Perx Technologies team. Furthermore, it highlights the invaluable support and collaboration received from clients, partners, and, above all, the millions of users who have embraced our platform.

“We are beyond grateful for the trust and collaboration that has fueled our journey, and we’re inspired by the impact we’ve made together”, said Amenallah Reghimi, CPTO, Perx Technologies. 

3 Billion API Calls: Empowering Advanced Customer Engagement 

Perx is the world’s first loyalty platform that combines the power of science with the underpin of gamification. With our proprietary technology, we can help companies grow by targeting users when they’re most likely to engage. This milestone demonstrates our commitment to supporting clients in strengthening their customer-brand ties.

Our unparalleled campaign management tools and comprehensive understanding of behavioral science merge seamlessly to provide brands with the power to unlock extraordinary growth opportunities and excel in their customer loyalty strategy.

While celebrating these milestones, we look forward to continuing to innovate and redefine the customer engagement and loyalty space. Stay tuned for new updates brewing behind the scenes that will be unveiled soon!

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Obtain valuable first-party data with instant rewards
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Unveiling the Future of Loyalty Engagement with Perx Orion™
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5 Reasons Your Loyalty Program Isn’t Yielding Results

5 Reasons Your Loyalty Program Isn’t Yielding Results

Delve into the top 5 reasons why customer loyalty programs are underperforming and explore how businesses can overcome these challenges.

Dharsh Kannan

MarTech Blogger | May 12, 2023


Launching a loyalty program can be compared to embarking on an arduous and unpredictable journey. You will encounter countless twists and turns that can either propel you forward or hinder your progress. However, despite your best efforts, you may still find yourself struggling to make any significant headway.

The 5 Problems With Loyalty Programs

The reason behind your stagnation could be attributed to neglecting seemingly minor details that can thwart the potential success of your reward program. To help you evaluate your program’s effectiveness, we have assembled a list of five common reasons why loyalty programs fail. These invaluable insights will enable you to gain a deeper understanding of why your program may not be performing up to par. 

The Lack of Customer Satisfaction: Earning rewards is too Time-Consuming

Customers are drawn to loyalty programs because of the promise of rewards and immediate satisfaction. However, over-promising can lead to disappointment and ultimately cause customers to turn away. Delayed reward redemption is one of the most significant pain points for loyalty program members, causing frustration and a sense of unappreciation for their loyalty.

Furthermore, earning rewards can prove to be a difficult and daunting task for some, further adding to their discontent. To overcome the issue of delayed gratification and keep customers satisfied, loyalty program providers must implement effective strategies.

Offering a mix of high and low-value rewards, ensuring they are both affordable and desirable, is an excellent approach. Providing a welcome gift to new members can create a favorable first impression and offer a taste of the program’s benefits. Additionally, adjusting the type of rewards can make them more accessible to customers, increasing their engagement and loyalty. 

The Program Only Focuses on One Kind of Benefit, Neglecting Others

Achieving a balance in the value proposition of a rewards program can be challenging, especially when each customer segment has unique preferences. While it’s advisable to leave customers with a manageable number of reward types, diversifying beyond discounts is one way to keep the program fresh and captivating.

Customers typically prefer financial benefits such as cashback or coupons that provide tangible, flexible value. Nevertheless, a considerable number of customers also appreciate personalized and experiential rewards, such as exclusive access, VIP treatment, and birthday rewards. To prevent issues with loyalty programs, a balance between various reward types is essential.

Overly focusing on discounts or experiential rewards can lead to an uneven customer experience. Additionally, incorporating partner rewards can increase the range of rewards available and make them more enticing, particularly if they include freebies, gifts, or merchandise. Lastly, offering high-perceived-value rewards like early product access, VIP customer service, and downloadable content can enhance the program’s appeal, and increase customer engagement and satisfaction.

Personalization is Insufficient or Nonexistent

Personalization is key to a successful loyalty program, and customized deals and offers are the secret ingredients. When customers receive rewards that resonate with their interests, they’re more likely to use them. On the other hand, a one-size-fits-all approach can leave them disengaged and motivated to explore competitors’ programs. To avoid this pitfall, it’s critical to gather and leverage customer data for personalization. 

One effective way to do this is by sending personalized birthday reward emails that surprise and delight customers. Furthermore, gamified surveys can help you understand customers’ reward preferences, enabling you to tailor your offerings to their individual needs and preferences.

The X Factor is Missing

For customer loyalty programs to be successful, they must provide an enjoyable and exciting experience for everyone while also offering a unique attraction that sets them apart from competitors. In today’s crowded marketplace, it’s essential to make a strong impression on your customers to stand out and retain their loyalty. One strategy that can help you achieve this is gamification. By incorporating game-like elements into your loyalty program, you can create a more engaging and entertaining experience for your customers.

This can include challenges, badges, point systems, leaderboards, and other interactive elements that make the experience more enjoyable. To use gamification effectively, it’s important to offer highly valuable experiential rewards that customers can unlock by completing specific actions or achieving certain goals.

These rewards should be unique, exciting, and exclusive, such as special event privileges, personalized merchandise, or travel packages. By creating a sense of exclusivity, you can increase the perceived value of the rewards and motivate customers to participate in your loyalty program. 

There are No Exclusive Offers for Members

Consumers view customer loyalty programs as exclusive clubs, expecting extra perks for their allegiance. Neglecting to make members feel valued could lead to disloyalty. To prevent this, invest in offer management and segmentation, creating region or channel-specific rewards. Enhance the exclusivity with special access to premium content and exclusive community events. These thoughtful touches can foster an unbreakable bond with your customers and elevate their overall experience.

A successful loyalty program demands careful attention to critical factors like gamification and personalization, which can make or break customer engagement and retention. Neglecting these elements can hinder progress. Optimize your customer loyalty program with The Perx Platform – a cost-effective solution that supercharges user acquisition, in-app engagement, and reduces churn. Book a demo today to learn more about how the Perx customer loyalty and engagement platform can elevate your loyalty program and improve customer engagement.

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Locking In Loyalty: How Customer Loyalty Programs Are A Smart Bet In A Struggling Economy

Locking In Loyalty: How Customer Loyalty Programs Are A Smart Bet In A Struggling Economy

By focusing on existing customers, businesses can have a loyal customer base, drive sales and cultivate lasting loyalty during an economic downturn

Amrith G

SVP, Marketing & Customer Analytics | May 08, 2023


Given the current state of volatility in the global economy, brands must remain steadfast and persevere through tough times. While a crisis can be daunting, it can also be an opportunity to seize. The world has experienced various economic downturns in the past, and it’s likely that more will occur in the future. During these previous recessions, we have seen brands introduce pioneering loyalty initiatives that have impressed both customers and critics. 

For instance, Starbucks launched its My Starbucks Rewards program during The Great Recession which lasted from 2007 to 2009. It allowed customers to earn points for every purchase and offered tailored incentives. The program proved to be a success, with many new customers signing up. This demonstrates how companies can introduce innovative brand loyalty programs to boost customer retention during an economic downturn, providing added benefits to consumers while strengthening their own bottom line.

The Importance of Customer Loyalty in Each Stage

In today’s world, where marketing budgets are tighter than ever, brands have made retaining customers their top priority. After all, attracting a new customer can cost up to five times more than retaining an existing one. Loyal customers are also known to be more likely to experiment with new products and spend significantly more than newcomers. Fortunately, brands now have access to an abundance of valuable customer data that enables them to create loyalty programs that reward customers at every step of their brand journey. 

By aligning rewards with each stage of the journey, these programs can encourage initial purchases, increase buying frequency, reward long-term engagement, and even inspire customers to participate in social causes beyond the transactional realm. For example, offering a discount code can encourage new customers to make their first purchase, while providing loyalty rewards to frequent consumers can encourage repeat business.

Additionally, offering personalized rewards based on a customer’s purchase history or preferences can create a sense of exclusivity and strengthen the customer-brand relationship. Adopting this approach can enable brands to not only maintain customer loyalty but also create a positive impact that extends well beyond their financial bottom line. 

Providing Meaningful Benefits in Loyalty Programs

Let’s break free from the notion that value equates to cheap deals. When a brand understands what its customers truly value, it can create rewarding experiences and offer meaningful benefits. Take, for instance, Sephora’s Beauty Insider program, which goes above and beyond in providing value to its loyalty members. Customers earn extra points with every purchase, which can be redeemed for free makeup samples and exclusive event access. 

The loyalty program also features tiered membership levels based on the amount spent, with higher tiers unlocking additional perks such as free shipping and early access to new products. By offering unique rewards and benefits, Sephora’s Beauty Insider program not only encourages repeat purchases but also fosters a strong sense of community among its members. 

Personalization is King: Leveraging Data to Create Tailored Experiences for Loyal Customers

As customer behavior continues to shift, brands must strive to earn their trust, engage consumers meaningfully with positive experience, and create reasons for them to return. To achieve this, delivering tailored interactions based on each consumer’s unique preferences is crucial to building customer satisfaction and loyalty.

One brand that has mastered this marketing strategy is Netflix. By leveraging data and analytics, Netflix provides personalized product recommendations to its consumers. It suggests movies and TV shows to each user based on their viewing history and preferences, delivering a tailored customer experience that keeps them engaged and subscribed. This excellent customer service has helped Netflix build trust and loyalty with its customers, contributing to its continued growth and success as a brand.

Drive Your Customer Loyalty Strategy With Incentives

Encourage customer loyalty by offering incentives that motivate them to participate early on. Rewarding customers can motivate them to take action at every stage of the customer journey by providing an incentive to engage with the brand. 

By offering rewards such as discounts, points, or exclusive access to events or products, customers are encouraged to participate in different stages of the journey, from making a first purchase to sharing their experiences on social media. This creates a sense of loyalty and strengthens the customer-brand relationship, increasing the likelihood of repeat business and positive word-of-mouth marketing . 

The North Face is a great example of a brand that does this successfully. Through its brand’s loyalty program, customers earn points for purchases made both in-store and online. But the program also rewards members for creating an account, updating their profile, and sharing their experiences on social media. These points can be redeemed for discounts, expedited shipping, and exclusive unlimited access to events and products. 

The North Face not only focuses on increasing customer loyalty through these incentives but also gains valuable data for delivering personalized experiences and targeted marketing tactics. 

From Transactional to Emotional Loyalty

Businesses must focus on delivering delightful micro-experiences at every stage of the customer journey to cultivate emotional loyalty and drive long-term engagement with repeat customers. This type of loyalty and customer lifetime value can be observed in various scenarios, such as when you frequent a particular ice cream shop, when you consistently purchase a certain brand of sneakers for your early morning runs, or when you recommend the make of your first car to your friends without hesitation.

By providing a unique promise that resonates with consumers, brands can develop a strong preference and affinity that goes beyond their products and services. Emotional loyalists aren’t driven by discounts and are unlikely to be swayed by competitor offers or cheaper alternatives. Instead, they focus on spending more with brands they trust.

Consumers tend to have a higher lifetime value when they feel an emotional connection with a brand. Even in challenging market conditions, consumers may carefully examine a brand’s communication and promises, but they are likely to trust word-of-mouth recommendations. Loyalists are often vocal advocates for their preferred brands and can influence their peers’ purchasing decisions. 

Regardless of the current downturn, consumers will always be willing to invest in products and experiences that hold personal significance for them. Nurturing emotional loyalty can lead businesses to acquire passionate brand advocates who have the potential to influence their peers’ buying choices, making it one of the most compelling reasons to invest in loyalty programs. 

Supercharge Your Business with Personalized Loyalty Programs

Personalized loyalty programs are essential for thriving businesses. They boost sales and foster loyalty among existing customers. To do this well, engage customers by linking rewards to touchpoints, customizing experiences, and encouraging long-term loyalty. Optimize your customer loyalty program with The Perx Platform – a cost-effective solution that supercharges user acquisition, in-app engagement, and reduces churn. Request a demo today to witness the power of our end-to-end customer engagement and loyalty platform and see how it can benefit your business.

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An ISO/IEC27001:2013 and
ISO 27018:2019 certified cloud solution
gdpr compliant perx
SAY HELLO

contact@perxtech.com
(65) 6631 8533

PRODUCTS
RESOURCES
COMPANY

An ISO/IEC27001:2013 and ISO 27018:2019 certified cloud solution
gdpr compliant perx

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