Customer loyalty programs once started as simple punch cards, but now it’s possible to find data-driven apps and engagement tools. They have expanded a lot over the years, with businesses now able to adopt numerous strategies to keep their customers coming back, again and again. Digital platforms, over the years, have changed the way that consumers interact with brands, and brands have had to change the way they work to stay relevant. With the digital age came a necessary shift, and when you break down the data, it’s easy to see that this has had a positive impact on businesses as a whole.
Deeper Relationships
Brands can use loyalty programs to forge deeper relationships with their users. Take local coffee shops for example. At one point, a sticker would be given for every cup of coffee purchased. As time has gone on, brands like Starbucks have taken things one step further. They now award points to users, with extra shots of espresso, whipped cream and syrups on the house when they achieve gold status. The power of personalization helps to reward a customer based on how much they are spending, rather than focusing on the number of products bought. By providing experiences like this, individuals can be rewarded on a more personal level.
Another example would be jackpot slots. With casino games like this, the prize pool is increased every time someone on the site places a bet. Even though this rewards people collectively rather than focusing on individuals, it does help to build loyalty by offering bigger and more extravagant rewards. People also have the chance of winning equally, providing an entry point to new users, as well as experienced gamblers.
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The Transition to a Digital Era
As technology evolves, so do businesses. Online businesses are now able to harness online databases so they can track purchasing patterns with a huge level of accuracy. Emotional connections can be forged and more meaningful rewards can be provided. Rewards can also be better aligned with the person who is making the purchase. If you look at supermarkets, some of them even offer individual offers to customers, which can be activated by scanning the smartphone app. People who shop at the store regularly may be able to take advantage of new and interesting offers, which are more appealing from a price standpoint. With so much time and energy being put into loyalty programs, businesses now face stiff competition.
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The digital era has made it possible to customize apps and loyalty programs but at the same time, it has forced brands to think outside of the box, so they can find ways to stand out. Companies like Starbucks, as mentioned above, are doing this brilliantly, but at the same time, some coffee shops are still relying on punch cards.
Businesses like this are usually the first ones to fail due to a lack of adaptation and innovation. When you take this into account, it’s not hard to see that digitized loyalty programs are the key to running a long-standing successful business.
