What are innovative ways to improve loyalty programs beyond points and discounts?

Another great way is to celebrate the anniversary of when your customer first used your service or product. I personally love receiving flower seeds or herbs.

Personalization is key in today’s market. For instance, Saurinjiya Jewelry's loyalty program offers rewards tailored to individual preferences. Based on purchase history, we provide customized jewelry cleaning kits or exclusive previews of new collections, making each member feel uniquely valued.

Asia relies on offline retail to create a personalised and exclusive experience: 1. Call them in to be the first to view a new collection/limited edition 2. Send a personalised branded gift for their birthday or anniversary 3. Host an intimate event at the boutique for them and their chosen friends, particularly in the realm of luxury

A significant challenge is the improvement of the loyalty program. In Brazil, a major pharmaceutical retailer (RaiaDrogasil) teamed up with a large supermarket retailer (GPA) and a bank (Itau) to create a program, but it still hasn't made significant progress. Initially, we noticed (at least in Brazil) that customers predominantly want airline miles. Therefore, one way to initiate change is to promote the use of the app, creating opportunities where consumers truly desire them. Another approach is to collaborate with other companies and share customer information among them. This can establish a database that allows for a better experience and promotes increased usage of these programs.

To achieve customer loyalty we must offer them experiences according to their profile since exchanging products for a better price or points does not generate emotion. Our loyal customer will be the best brand ambassador.

Gamifying can be oversell & can quickly become negative marketing. Time investment can be seen as a tool to gather information & then there is no follow-up or follow through.

Gamification adds an element of fun and engagement. We introduced a 'Jewel Quest' game within our app where customers earn 'Jewel Points' for various activities like referrals and social shares. These points unlock special rewards like a custom jewelry design session, enhancing the traditional loyalty experience.

From my experience with gamifying loyalty programs, the initial thrill of points, badges, and challenges successfully motivated customer actions. However, sustaining long-term engagement proved challenging. The novelty wore off, and gamified elements became routine for some, losing their initial excitement. Leaderboards occasionally led to unintended competition instead of fostering a positive community. Regularly updating and diversifying gamification elements, driven by customer feedback, proved crucial in maintaining interest. Striking a balance between excitement and predictability is key to ensuring sustained customer satisfaction and loyalty.

Intense gamification can sometimes lead to disinterested customers as it may lead to customer burnout , Customer engagement gets saturated post reaching a certain level in the game. it is for customers who visits frequently need to do cost benefit analysis before implementing and maintaining it

Gamification can increase customer engagement by tapping into our natural desire for challenge, reward, and achievement, and by making tasks and activities more enjoyable and memorable. It can also provide valuable customer data, enhance brand awareness and reputation

Loyalty programs can also drive positive change. For every purchase, Saurinjiya members can choose to donate a portion of their points to a charity. This not only rewards the customer but also aligns with our brand ethos of giving back, creating a deeper emotional connection with our clientele.

From my personal experience, integrating social impact into loyalty programs has been a game-changer. When I implemented this approach for my business, I saw a remarkable increase in customer engagement and loyalty. Offering rewards tied to charitable donations allowed our customers to feel a deeper connection with our brand, knowing that their loyalty was making a positive impact beyond just transactions. This strategy not only improved customer trust and credibility but also created a genuine sense of purpose and belonging among our customers. In the end, incorporating social impact into our loyalty programs proved to be a win-win, fostering a meaningful connection between our brand and our customers.

Consumers are more aware and conscious regarding social impact today than in recent years. Rewards that allow customers to contribute should be avoided, as customer expectation is that the brand should be doing that anyway, not a customer doing so on a brands behalf. A brand that genuinely cares and prioritizes good causes will have social impact built into everything they do, not passing the responsibility onto their customers.

We leverage customer feedback to improve our offerings. Members are encouraged to review their purchases and in return, receive early access to limited editions. This approach not only improves our products but also builds a community of engaged and loyal customers.

Data suggests that, 90% of customers read reviews before making a purchase, and 87% of purchase decisions start with online searches. It’s the only way to build in authentic social proof into an offer.

Customer perception will depend on a company’s approach. Completing a survey for a chance to win a gift card is old hat and customers are no longer as excited by this approach. As people become more aware of how their data is used and about data ownership, any attempts to collect data from customers needs to be transparent, and provide a guaranteed value.

Strategies cannot be made for clients or consumers without knowing what their needs are or the way they perceive our brand/product/service. A good market analysis strategy accompanied by a sense of perception helps us reduce the areas of opportunity that we may have. I believe that creating controlled tests allows us to have feedback before launching to the general public.

Tiered programs create a sense of progression. Our 'Saurinjiya Circle' has Silver, Gold, and Platinum tiers, each offering increasingly exclusive benefits. Members are motivated to move up the tiers, not just for better rewards but for the status and recognition that comes with it.

Tiered programs are one of the best ways of designing a loyalty program. Here are some benefits around which such a program can be designed. - Tailored Tiers: Customize loyalty journeys with tiers reflecting individual spending and engagement. - Exclusive Benefits: From early sale access to priority support, elevate benefits across tiers. - VIP Access: Grant Elite members VIP access to exclusive events, fostering a sense of belonging and exclusivity among high-tier patrons. - Premium Upgrades: Unlock premium perks as customers ascend tiers, offering seamless experiences like free shipping and express deliveries. - Loyalty Rewards: Express appreciation with tangible rewards—exclusive merchandise, early sale access, and personalized services.

Upsell : Higher tiers can include exclusive benefits and exclusive offerings can be included with the top tier through which we can sell our premium product to premium customers.

In my experience, loyalty should always be tiered. Customers should feel entitled purchasing from us and should be incentivised to purchase more. It is very important for tiered program to give special service to higher tiered customers (not bigger discounts). It can be as simple as special badge or something like fast-track service or special invites to events. The perks depend on your industry and products/services you provide. This becomes aspirational for lower tiered customers and traction for higher tiered customers to keep up the purchase.

This is the most important approach in my opinion. Loyalty = Status, which not only do people enjoy, but also ensures repeat business in order for customers to protect their standing.

Continual innovation is vital. We regularly test new ideas, like offering a 'Jewelry of the Month' club for our top-tier members, gauging interest and adjusting based on feedback. This approach keeps the program dynamic and aligned with customer desires.

It's been said "if you're not speaking to your customers, it's just a hobby" It's OK to ask your customers, and prospects, what would delight you? What would make you share us with a friend of family member? It's these insights that will save you time, money, retention and growth.

A/B testing is a powerful method that can help retail marketers measure the conversion and retention rates, and improve them. Retailers can also use experimentation to test hypotheses, validate assumptions, and learn about customer preferences and behavior. Experimentation can help retailers identify what works and what doesn't, while personalization allows them to tailor each visitor's experience

Consider incorporating personalized experiences, exclusive access to events, early product releases, or collaborative initiatives where customers can contribute ideas. Creating a sense of community through forums or social platforms can also enhance loyalty.

Consider leveraging technology like AR to enhance the shopping experience, or offering educational workshops for deeper engagement. Remember, the essence of a successful loyalty program is creating a sense of belonging and exclusivity that goes beyond transactional rewards.

One thing that has become very critical in today’s world is to create emotional connection with consumer. Consumer has to be treated part of family beyond passive transactional engagement. Consumer has to feel valued on every touch point with organisation.

Understanding consumer journeys is extremely critical in order to capitalise on the overall lifecycle as one instance leads to another instance which in turn helps in providing a very personalized and customised experience. We need to clearly distinguish between CX and UX and define what are the associated elements for each of them.

Driving emotional loyalty shoupd be the objective. Brands need to create meaningful and personalized experiences for their customers that go beyond discounts and offers. Some ways to get to that level could be - 1. Reduce friction and make the entry into the program seamless. 2. Make your members feel they are being heard - seek, acknowledge and work on their feedback as the program is for them. 3. Help them grow by making the awards & milestones attainable. 4. Data over gut - Collect, manage and analyse customer data to personalize their experience. 5. Emphasize on value-driven proposition through shared values and purpose.

While creating such programs we should also take care of audience aspiration , Sentiments, emotional quotient and feeling of proud.