The New Face of Loyalty – Hybrid Loyalty Programs
Why do people, in general, pay more for a custom outfit when they can easily get something off the rack for a much lower rate? Well, because a well-designed outfit that is tailored especially for your body frame with your specifications has more appeal than something that is mass-generated, wouldn’t you agree?
A hybrid loyalty program is designed precisely for the same reasons. As the name suggests, hybrid loyalty programs are a combination of two or more loyalty programs. These programs are designed to suit the specific needs of a particular business and to cater to the dynamic requirements and expectations of its customers.
The most widely adopted hybrid program is a combination of the Points and Tiered Program but brands have become more experimental with loyalty programs in recent times. Various businesses have been taking hybrid programs a step further and combining them with coalition programs which is a partnership or collaborative strategy between two or more brands.
Why Do Hybrid Loyalty Programs Work?
- Makes Things Interesting for Customers – Hybrid programs generate customer curiosity and excitement. It is a break from traditional strategies and piques the customer’s interests which in turn improves engagement rate.
- Improves Customer Experience – A hybrid loyalty program is designed specifically to appeal to customers. When a customer is satisfied with the overall brand, it influences the customer experience. Improved customer experience can increase customer engagement, retention and as well as acquisition rate.
- Offers Flexibility – With a hybrid program, you can get the advantage of flexibility. You can try new techniques and strategies and even alter the dynamics of the program if you like. A hybrid program doesn’t have to stay within the lines of a traditional program. You can create your own rules that are best suited for your business approach.
- Better Returns – Customization and flexibility have a direct impact on revenue. Not every business is the same and a customized hybrid program can leverage your strengths and offer better returns. Hybrid programs are dynamic strategies designed specifically for your business requirements that guarantee better returns.
Things to Consider While Designing Hybrid Loyalty Programs?
- Requires Thorough Research- A hybrid program is a product of thorough research. Studying audience purchase patterns and responses, competition analysis and trending marketing strategies among other things need to be taken into consideration while designing hybrid loyalty programs.
- Requires Expertise – Designing a hybrid loyalty program is a huge and complex undertaking. It is also a long-term commitment you make to your customers; therefore, you need the assistance of an experienced loyalty partner such as Annex Cloud. Annex Cloud has successfully designed and executed hybrid loyalty programs for well-known programs. Click here to learn more about how Annex Cloud can help you design a customized program.
- Updates may Impact Customer’s Response – Loyalty programs do not require routine updates, but to keep things fresh you need to revisit your strategies once in a while. With a hybrid program, frequent updates may create confusion. You will need to start afresh with customers and make sure that they understand the dynamics of the new hybrid program.
How To Create the Perfect Mix?
- Learn about Customer Expectations – The first step is to understand your audience. Learning about their needs and expectations in not as difficult as it seems. With the help of your data, feedback and reviews you can read the pulse of your audience. Once you know what your customers need and expect from you, designing a customized program becomes much easier.
- Gauge The Competition – The fail-proof way of gauging the efficiency of a program or designing new strategies is by competitor analysis. Study your competitor’s strategies and also read the customer’s reaction to it. If a certain formula works for your competitor, it is likely to work for you as well. Competitor analysis will also help you understand where your competitor is lagging behind and what he fails to offer to his customer. It will help you design better strategies that address the needs of your customers.
- Consult with a Loyalty Partner – Loyalty program and especially a hybrid one is a complex strategy. For the maximum efficiency and a fail-proof plan, consult with an experienced loyalty partner. Loyalty partners like Annex Cloud, offer customized solutions and free consultations along with a demo. This allows you to make an informed decision. For an expert view on loyalty, click here.
- Stress on Simplicity – While designing a loyalty strategy with your team or loyalty partner, focus on creating a simple program. A hybrid loyalty program is already complex in nature, to improve participation and engagement rate you need to keep the program as uncomplicated as possible. It must be easy to comprehend for customers and navigate through. Create a user-friendly dashboard and a walkthrough to make it easier to understand and keep it more interactive.
- Take Feedback – Your customers are your best critics, if you are designing a program to engage customers, it is important to take their feedback and reviews into consideration. For example, even before you launch a program, ask your customers their opinion about it, it will also generate curiosity and be a great promotional tactic to increase the participation rate.
- Make It Exciting – Most importantly, make it exciting for customers. Use personalization and gamification to keep customers hooked to your loyalty program. Offer exciting rewards that encourage them to escalate through the tiers or earn more points. As long as the program is exciting and offers great value for the customers and money, it is bound to succeed.
How Can I Design My Customized Hybrid Program?
Experience and expertise are key ingredients required to create a successful hybrid loyalty program. You need the strong backing and technological prowess of a loyalty partner like Annex Cloud. Annex class combines the best-in-class technology with its loyalty expertise to design bespoke solutions for your business needs. Connect with Team Annex Cloud, to learn how you could amplify your business with a customized loyalty program.