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TRUTH
THE
OF THE LOYALTY POINT PROGRAM
(UGLY)
What Marketers Say What Customers Hear
VS
NICESKY AIR
WITH
The traditional
loyalty program
scopes around deferred
gratification; slow
accumulation of points
leading to large
redemption events.
Nowadays,
several big brands
implement a “points
ubiquity” approach;
making the program
broader and increasing
the number of
collection points.
ICY
NICESKY AIR
WITH
icy
Nowadays,
several big brands
implement a “points
ubiquity” approach;
making the program
broader and increasing
the number of
collection points.
ICY
NICESKY AIR
WITH
icy
BUT DOES IT REALLY
CREATE CUSTOMER LOYALTY?
1The Points Accumulation
TRUTH
(UGLY)
Give customers
MORE WAYS to
accumulate points
What marketers say:
“ icy
So you can get to
the redemption point faster.
Give customers
MORE WAYS to
accumulate points
What marketers say:
“ icy
icy
Give customers
more ways to
ACCUMULATE
points
What customers hear:
”
icy
Give customers
more ways to
ACCUMULATE
points
What customers hear:
”
I don’t have to buy from
you to get points.
... there’ll no longer be
a strong bond between
your brand
and the customers.
If most points
are earned outside
at the partners
network, ...
TRUTH
(UGLY)
1
2THE REWARDS
TRUTH
(UGLY)
NICESKY AIR
WITH
icy
Earn a lot of points and
get BIG rewards
What marketers say:
“
NICESKY AIR
WITH
icy
Buy from us and our partners to collect
a lot of points and redeem big rewards.
Earn a lot of points and
get BIG rewards
What marketers say:
“ NICESKY AIR
WITH
icy
MyCoffee
Earn a lot of points
and get BIG rewards
What customers hear:
”
icy
MyCoffee
Forget the big rewards.
It’ll take me forever to get them.
Earn a lot of points
and get BIG rewards
What customers hear:
”
...even though
the rewards are big.
Geared towards
the heavy buyers,
the long tailed points
program causes the
less heavy buyers to
lose their interest in
reaching the
redemption points, ...
TRUTH
(UGLY)
2
TRUTH
(UGLY)
Loyalty
The
Stay with
OUR LOYALTY
PROGRAM and
you’ll get privileges
What marketers say:
“
NICESKY
AIR
NICESKY
AIR
NICESKY
AIR
Stay with
OUR LOYALTY
PROGRAM and
you’ll get privileges
What marketers say:
“
Our loyalty program offers great privileges
through our brand and partners network.
icy
Stay with our loyalty
program and you’ll get
PRIVILEGES
What customers hear:
”
It’s cool to be a member of
your loyalty program.
Stay with our loyalty
program and you’ll get
PRIVILEGES
What customers hear:
”
...keep their
membership for the
status, not the brand
loyalty.
Many members of big
loyalty programs,
especially the
Frequent Flyer
programs, ...
TRUTH
(UGLY)
3
icy
The “points ubiquity”
approach, instead of driving
more loyalty towards the
brand, turns the loyalty
program into merely a
points exchange scheme…
which doesn’t create true
customer loyalty.
Want to see more details in motion
Get social with us at:
Watch the full video of
Common misconceptions
of loyalty program
by Regan Yan here
www.digitalalchemy.asia
?
Visit our blog
www.digitalalchemy.asia/blog

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