Articles Tagged with: Holiday Season Loyalty

The 5 Loyalty Rewards Program Engagement Tactics Your Customers and Brand Need This Holiday Season

The 5 Loyalty Rewards Program Engagement Tactics Your Customers and Brand Need This Holiday Season

Grace Alexander

MarTech Blogger | December 29, 2021


Is your loyalty rewards program going to deliver on expectations this holiday season — on both sides of the relationship?

5 Ways You Can Up Your Rewards Program Game
Reevaluate Your Scoring Systems

Many rewards programs are generic. They look, feel, and work the same – like a ledger that keeps a basic record of points earned and spent and does not really do anything else.

Take Starbucks: long known for their brand stickiness and impressive customer loyalty, the big brand took a belly flop back in 2016 when they decided to ditch their intuitive and straightforward 1 purchase = 1 star, and 12 stars = 1 coffee rewards program model.

They changed to a 2 stars per dollar spent-based model and required 125 stars to redeem a free coffee. This meant the average customer who liked regular coffee had to spend $62.50 instead of $48.00 to get their free cup of coffee, and the core customer base was enraged.

The coffee conglomerate took a while to recover but eventually added tiers to their rewards program, stopped stars from ever expiring, and added gamification and personalized rewards for loyal customers.

A simple scoring system is not enough, so it is time to learn a lesson from Starbucks’ stumble and recovery and learn how to truly engage with gamification and long-term relationship-building strategies.

Make Things Personal By Leveraging Customer Data

Customer loyalty and customer retention are inextricably linked, and big data and analytics are driving both — the importance of personalization in a good rewards program and tracking loyalty marketing metrics.

Customers that are actively engaged with brands and their loyalty programs make 90% more frequent purchases, spend 60% more in each transaction, and are five times more likely to choose the brand in the future.

You can use big data and analytics to ensure the rewards and opportunities offered to match a customer’s spending habits – whether they customarily spend on travel expenses, entertainment tickets, fine dining, or expensive electronics.

Perx’s rules engine makes all this possible by identifying the best incentive to drive consumer action, weaving the offer and experience into a seamless mobile-first journey, and surpassing customer expectations with experiences and rewards that fit their lifestyle.

Ensure Every Reward Is Exciting Enough to Be Memorable

38% of consumers are not interested in joining loyalty programs due to their lack of perceived value. People value their time, and they will opt out unless you make it worth their while to participate in your loyalty program. So, you must figure out how to keep them consistently looking for the next chance to participate and receive a reward.

Use gamification to keep them moving and plan “free” bonuses at intervals to prevent stagnation along the customer journey. Make every reward high-value enough to make it worth the customer’s time to engage with each touchpoint and remind them frequently about the bigger prize at the end of each segment of the journey while teasing the next round of experiences.

Double Down on Instant Gratification

Instant gratification resonates with consumers, particularly the millennial and Gen Z audience, and 45% of consumers say they will switch brands if a company does not actively anticipate their needs. These customers crave immediacy and have become fast adopters of click and collect, needing that hit happiness that comes from getting a reward.

Start your customer journey with actions and rewards that offer immediate gratification. Then, slowly build to longer experiences with bigger rewards at the end to increase trust and belief in your program’s value. Provide nudges and assistance in reaching goals to prove your loyalty to your customers is as strong as you want their brand loyalty to be.

Beat Out Your Competition By Going the Extra Mile

What is your competition doing? It is time to investigate. If they are offering a discount on a loan or an increased interest rate to members of their loyalty program, find a way to sweeten the deal with an extra, personalized reward on top of the main offering to differentiate yourself.

Brand Loyalty Programs Designed For Maximum Engagement

Capital One’s “Purchase Erasure” recognizes it can be easy to forget to use bank card-associated air mile points during an impulsive travel planning session. As a result, customers can submit air mile point-eligible travel purchases up to 90 days after the fact for reimbursement. This makes customers feel like their bank is sincere about benefiting from their earned points.

One of Asia’s top three banks needed a creative and efficient solution to increase overseas spending of their high-end credit card customers. Perx identified a segment of existing overseas customers who were credit card users with a higher propensity to spend and leveraged real-time analytics and valuable customer insights into immediate, impactful business decisions and outcomes. As a result, the bank reached out to 21,000 of their existing customer base and 91% of targeted customers engaged with the campaign. Over 500,000 Instant Rewards were delivered in real-time, including 10M KrisFlyer miles, and the campaign achieved $24M in incremental spend for the bank.

Bonus Tip: Make it EASY

Perx rewards program for another bank used stamps culminating in a free high-value prize, with a QR code scannable at any participating outlet to redeem the reward and even a scheduling option for picking up the reward, propelling the customer through that last-mile to achieve their reward.

Conclusion:

The Perx Lifestyle Marketing Platform (LMP) is ideal for brands looking to build real and meaningful relationships with their existing and prospective customers and create customer experiences that engage and excite them. Brands can use a digital loyalty marketing platform to drive meaningful behaviors that result in personalized rewards.

Read how Perx and Mambu teamed up to redefine core banking, drive last-mile customer engagements, and ask for a demo today.

CUSTOMER SUCCESS STORIES

How Retailers Can Win The Holiday Season By Truly Going Customer-First

How Retailers Can Win The Holiday Season By Truly Going Customer-First

How Retailers Can Win The Holiday Season By Truly Going Customer-First

Sean Foo

MarTech Blogger | December 06, 2021


As a retailer, the holiday season should be a cheery time of the year where stores would be packed and products flying off the shelves.

However, the current pandemic has changed customer behavior forever, rendering the time-tested marketing strategies of retailers to become increasingly obsolete.

How do you compete in an environment where margins are razor-thin and customers are notoriously fickle?

The solution lies in genuinely understanding what your customers desire, engaging them directly one-on-one, and influencing their decisions to drive what really matters — sales.

The First Step Is To Analyze Your Customer Data

How well do you really know your customers?

While many retailers can easily cite the customer demographics and the products or services that contribute the most revenue, knowing the exact preferences of your shoppers is essential.

Starbucks, for example, utilizes the data collected from their rewards program and mobile app to understand the purchasing habits of their millions of users. The rewards themselves, represent over 36% of US company-operated sales in 2017.

The data intelligence gathered allowed them to better personalize the Starbucks experience for their mobile app users, suggesting highly relevant products and new offerings that each customer might be uniquely interested in.

Through your point-of-sale (POS) system and loyalty programs, you can also start to build preferential data points around customers, segment them into distinct personas and let your customer engagement campaigns deliver a personalized treatment.

This allows you to recommend the right types of products they might be interested in instead of simply broadcasting a message that might reach everyone but pleases no one.

Engaging Your Customers Where They Are, Is A Must

When was the last time you made a conscious effort to go window shopping around a mall, hoping to spot the latest and most fantastic deals?

Sure, the Christmas trees on display in the mall might attract shoppers, but it is undeniable that retail store footfall has been steadily decreasing globally, and the pandemic has all but slowed it down to a trickle.

Online shopping & the digital floor space has taken over.

Most shoppers today live on their smartphones, and retailers will need to capitalize on this by engaging with them where they spend much of their attention.

Through targeted campaigns with highly personalized offers, brands will be able to actively engage their prospects to increase foot traffic to their physical stores or digital storefronts.

How Retailers Can Win The Holiday Season By Truly Going Customer-First

The Perx Lifestyle Marketing Platform allows retailers to target the right audience and hyper-personalize how your brand engages with your customer to influence the shopping cart naturally.

Imagine, your customer getting a digital scratch and win card just before Christmas that entitles him or her to claim their favorite drink from your cafe. The experience is unique, it is gamified and it is instantly gratifying.

It is how one retail chain in the Philippines managed to achieve a 700% increase in customer engagement on their loyalty program and how Thailand’s largest mall operator experienced a double-digit rise in footfall and revenue.

Solving Cart Abandonment Is Mission-Critical

Customers today enjoy an abundance of options; you are not the only retailer in town with a unique brand or quality products.

All too often, this leads to shopping cart abandonment that spikes to an all-time high, especially during the holiday season, where customers are being blasted with a continuous stream of offers and promotions.

How Retailers Can Win The Holiday Season By Truly Going Customer-FirstIn fact, a 2019 research has found that the average shopping cart abandonment rate is an astounding 69.57%.

From a long checkout process to the allure of comparison shopping and the lack of additional last-minute discounts, many factors could suddenly spur a prospective customer to abandon their purchase.

While it is impossible to eliminate cart abandonment fully, you will have to go beyond just optimizing the checkout process and removing roadblocks to a swift conversion. The key is to engage your customers both on-site before they leave and off-site should they exit your checkout page.

By analyzing your customer data and engaging them during the checkout process, you will be able to trigger excitement and influence your prospect towards the sale.

A first-time customer at your checkout page? Let them spin the wheel to win an additional 10% off their first purchase.

A loyal customer about to checkout? Let them shake a virtual tree and reward them with a sweet discount on their next purchase in the same shopping session!

A prospect that left the shopping session prematurely? Engage them through your store’s app with a reminder tied with gamified rewarding experience.

By sprinkling dynamic engagements within a single shopping experience, you will increase your brand touchpoints in an authentic way that influences their decision to purchase by incentivizing it.

This will allow you to reduce your cart abandonment rate and upsize the shopping carts to drive even more revenue per customer and increase the share of wallet.

Fight Against Lowered Margins With Hyper-personalized Offers

As a retailer, you know the drill when it comes to holiday promotions.

1-for-1 deals, 30% off store-wide and flash sales are classic promotional strategies retailers use to drive revenue and stand out amidst the fierce competition.

Sure, these deep discounts are great for your customers but a nightmare to your margins! Furthermore, relying on the loss-leader strategy is not always sustainable and does not guarantee additional purchases once you grab your customers’ attention.

What is more powerful (and profitable) is to hyper-personalize your offers and engagements to the right audience at the right time.

Amazon, for example, uses its customer purchase history and buying behavior to recommend the right promotions and products that matter to the buyer instead of a blanket discount.

You can do the same, too, by leveraging your customer data and sending personalized offers just as the holiday season begins!

A terrific way to gamify and personalize such an experience is a 12-days of Christmas scratchable calendar that can be integrated with your customer loyalty programs.

This allows customers to wake up and anticipate a new ‘present,’ which could be a targeted promotional product or a gift that they love, throughout the Christmas period.

Instead of just slashing prices store-wide, retailers should aim to gamify and personalize their customers’ shopping experience to increase their brand touchpoints while preserving their margins naturally.

Place Your Customer & Their Experience First This Holiday Season

Discounts and promotions alone do not win the day; prioritizing your customer experience and their needs do.

By leveraging your customer data and crafting interactive experiences that blend well with their lifestyle, you will be able to create unique brand touchpoints that go beyond just mere suggestions and indeed influence their purchasing decisions.

Ready to transform the way you engage with your customers this holiday season?

Learn more about the Perx Lifestyle Marketing Platform and how we have helped brands elevate their customer engagement strategies, transforming them from just another brand into an influencer in their customers’ lives.

Get in touch for a tailored demo and discover how you can influence and drive customer actions today.

CUSTOMER SUCCESS STORIES