Loyalty is Changing

BY KAT MORGAN – DATA SCIENTIST

I recently attended the annual American Marketing Association conference on Inspired Marketing. The conference focus was for marketers and researchers to learn about generating insights and applying next practices. Of the sessions I attended, one of my favorites was “Engineering Serendipity: The Future of Individualized Loyalty and Engagement.” The speaker was Jenne Barbour, Director of Global Marketing Strategy at Teradata. She identified several next practices for loyalty programs and two of them really struck a chord with me.

THINK BEYOND POINTS

Loyalty programs are not just about earning and redeeming points. They are about building customer relationships and delivering added value. Businesses can provide value in ways other than dollars when creating opportunities to connect with their customers. Disney’s MagicBand is an example of a non-traditional loyalty program that gives the customer a great value—the value of convenience. The MagicBand is an all-in-one device that connects Disney World Guests to the vacation plans they made ahead of time using the “My Disney Experience” feature. You can use the bands to enter the park, unlock your Disney Resort hotel door, and charge food or merchandise to your hotel room. Once you’ve linked your MagicBand, you don’t need to do anything other than enjoy the magical Disney moments.

AN OMNICHANNEL APPROACH IS A NECESSITY

According to the Cisco Visual Networking Index^[1]Cisco Visual Network Index Executive Summary:
http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/white_paper_c11-520862.html
, global mobile devices and connections grew to 7.4 billion in 2014 from 6.9 billion in 2013. Customers have made the shift to mobile and are crossing between offline and online channels. It’s not enough anymore to engage customers in the physical stores; you have to think about how to engage them on your website and mobile site. The Starbucks app does a great job of connecting the brick and mortar and mobile worlds. With the “No Time? No Line” program you can place an order and pay ahead using the Starbucks app. Then you can just walk in to your local store and ask a barista for your order. No waiting in line required!

Loyalty is changing and customers who don’t feel like they are getting relevant and added value from the brands they love today will leave. It’s critical to understand your customers’ expectations and what they value when it comes to your brand. Loyalty programs aren’t just about points and dollars anymore. They can deliver connected experiences and magical moments of engagement that are even more meaningful to customers.