Contrary to popular notions, separating emotions from business is perhaps the gravest mistake you will make as a brand or a company. Why? Because people, in general, are driven by emotions and the sooner you acknowledge and leverage this fact the better it is for your overall business growth.
The faculty of loyalty marketing is well-aware of the impact of emotional influence on purchase decisions and conceptualized progressive loyalty programs. These programs are designed to strike an emotional chord with your audience and develop a relationship that transcends monetary transactions. In this article, we will explore the potential of progressive loyalty rewards and learn about techniques to boost the efficacy of your loyalty and rewards programs.
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What are Progressive Loyalty Rewards?
Unlike traditional loyalty program, progressive loyalty rewards program focus more on turnkey engagement than on just customer retention and engagement. Progressive loyalty concentrates on the holistic customer journey. The idea behind progressive loyalty is to form an emotional bond with customers. It aptly utilizes the premise of loyalty programs for pro-longed engagement by forming an emotional connection between the brand and its customers. It is a reciprocal strategy wherein the brand establishes a conducive environment for long-term customer engagement. The best progressive loyalty reward programs ensure that customers remain emotionally connected with the brand throughout their customer journey.
Why Are Progressive Loyalty Strategies More Beneficial?
- Customers Aren’t Easily Swayed – Progressive loyalty strategies are designed to foster emotional connections. Time and emotional bonding strengthen the connection between the brand and its customers. When a customer gets emotionally engaged with a brand and develops an affinity towards it, the bond becomes unbreakable. The customer is unimpressed by newer brands and products in the market and remains loyal to brands he is emotionally connected with.
- Customers Spend More – According to research, emotionally loyal customers will visit their favorite brand 32% more often and spend 46% more money than those with less emotional ties. Progressive loyalty helps to leverage the maximum spend capacity of customers, encouraging them to repeatedly purchase from your brand, the trust they have in your brand is also transferred throughout your brand extension and helps in upselling and cross-selling as well. Progressive loyalty rewards ensure that the customers choose you over your competitors and ensure increased customer lifetime value.
- Customers Become Truly Loyal –Continued association and consistent engagement create a base of loyal customers. Loyal customers are dedicated to the brand and stick around even in times of crisis. The main marketing goal of brands globally is to create loyalty among customers and progressive loyalty solutions ensure just that.
- Customers are More Forgiving: The fierce competition makes it really difficult to sustain in the market. Where every marketing mistake or miscalculation can put a dent in your balance sheets there is no room for error. Customers have multiple options to choose from and if your brand ever fails to address their needs, customers are not hesitant to switch. However, with emotionally loyal customers you have some leeway. Customers that are emotionally involved with the brand are more forgiving of minor mishaps or price inflation and they are bound to remain loyal to the brand despite its minor lapse in judgment.
- Customers are More Willing to Share Their Data – Data is a vital commodity, especially in this day and age. With global data privacy and protection laws in place, it has become increasingly difficult to extract data. Progressive loyalty programs enable brands to mine customer data ethically and legally. Customers that are invested with the brands through loyalty programs are more willing to share their information with the brand.
- Customer Proactively Promote the Brand – Loyal customers are strong brand advocates. They act as brand representatives and with their conviction towards the brand, positively influence other customers as well. Loyal customers not only impact the retention rate but also considerably increase the customer acquisition rate.
How Can You Adopt Progressive Loyalty Strategies?
- Focus on Customer Journey – Progressive loyalty is aimed at long-term gain and this is why focusing on the holistic customer journey is extremely important. In order to make the most of your loyalty strategy, you want your customers to remain associated with you for as long as possible. Analyzing the customer journey and designing a strategy that keeps customers engaged through their association with your brand is the first step towards building efficient progressive loyalty rewards.
- Make Customer Engagement a Priority- In a progressive loyalty strategy customer engagement is crucial. You need to consistently engage with customers in order to form a strong relationship with them. Engagement plays a key role in strengthening the customer-brand equation and improving the efficiency of the loyalty program.
- Make Earning Rewards Easy – In order to keep customers engaged and interested in the loyalty program, you need to have achievable goals. The more rewards customers earn, the more excited they are to earn some more. Also, give your customers more means to earn rewards. For example, if you are looking to acquire new customers, reward every referral. Or if you are looking to create a strong social media presence, reward customers that share your posts on their social media. Depending on your CTA, you can reward your customers to help you achieve your marketing targets organically and efficiently.
- Design a Tiered Program – A tiered program gives customers something to return to the loyalty program. Once a customer is on a winning streak, he/ she will aim to earn more rewards by escalating through the tiers. A tiered program also ensures that customers are regularly rewarded and are given something to aspire to. Make certain that you reward your customers handsomely when they cross a particular goal or reach a tier. This will further encourage customers to actively participate in the loyalty program.
- Opt for Experiential Rewards – The reward is the quintessential part of the loyalty offering. Instead of offering discounts or material gifts and rewards, you could opt for experiential rewards. You could offer rewards like dinner dates, paid vacations and staycations or even a ticket to an amusement park, the options are unlimited with experiential rewards. Experiential rewards help to create memories and stimulate positive emotions, the customers begin to associate the brand with the positive experience, which improves brand recall value and overall affinity towards the brand.
- Explore the Option of Aspirational Rewards – Aspirational rewards give customers a concrete goal to work towards. Earning small rewards along the way is a great way to keep customers engaged however when reaching the top tier qualifies you to win a grand reward like an international trip or an automobile, it encourages customers to actively participate. Not only do aspirational rewards improve participation rate but customers also become invested in their customer journey and aspire to win the ultimate reward through the loyalty program.
How Can Partnering with Annex Cloud Benefit You?
Recognized by Forrester for its robust Loyalty Experience Platform, Annex Cloud offers the widest range of engagement options to build emotional customer bonds that last. For a free consultation and demo, click here.