What do brands get out of
For brands, “loyalty” means:
- Retain your best, most proﬁtable customers
- Shift “good” customers to become more
proﬁtable in both the short and long term
- Acquire customers with potential to become
- Reconnect lapsed users with the brand
In addition, active consumer loyalty provides a
signiﬁcant competitive advantage:
- Customers have emotional equity in your
- You are their ﬁrst choice
- They look to you to solve their needs/problems
- They share information with you
- They ask for guidance
- They discuss your oﬀering - not your prices
- They positively suggest how you can improve
- They want you to succeed
- They advocate ‘their’ brand to others
Let’s talk about how loyalty works…
- What are some common “loyalty program”
- What would the “ideal” loyalty program look like
from a consumer’s POV?
- “Social Loyalty” and Gamiﬁcation
What are some common
“loyalty program” structures?
Common loyalty approaches:
- Collect Points, Rule the World
- Sign Up for Stuﬀ
- Donut and Coﬀee Shoppe Punch Cards
- Lagniappe: “A little sumpin’, sumpin’”
But modern consumers have diﬀerent
expectations for loyalty.
In part, because they have higher hopes
Also, because they have cynical
expectations of what happens when those
hopes smack into reality.
“While earning and redeeming points are the most
important attributes for choosing hotel and airline
loyalty programs, travel brands should focus on
enhancing the customer experience, making
rewards personally meaningful, encouraging
loyalty with unexpected rewards if they want to
boost consumer engagement, and ultimately
building long-term customer relationships.”
Deloitte Survey and Report: “Developing a blueprint for reinventing loyalty programs.”; 1/23/13
The “ideal” consumer program is:
The end result: Community
If it is easy, and personal, and modern,
it’s something I would be loyal to,
(even if I have to jump through a few hoops).
Because that means you give me what I want, and
make me feel like a peer, not a number.
This is, of course,
for most brands to do.
Which means new approaches and
software platforms have sprung up to
make it “easy” for brands to create loyalty
programs, using social media and
Social Loyalty and Gamiﬁcation
Right now, there are a variety of startups who try
to make it easy for brands to reward any aspect of
consumer behavior. Companies include BigDoor,
Badgeville, CrowdTwist and others.
Let’s walk through a quick CrowdTwist example.
The basic structure of this example is
But you collect points for many more activities…
While some of these activities are pretty
simple, they also are useful for the
The points can be exchanged for
products, cool things, or event
People share their behavior on their networks,
earning more points, and spreading awareness.
Some other examples of
gamiﬁed /social loyalty.