Why you should be thinking more about emotional loyalty

“Customers expect more for their money.”?

Sure — the competition increases day by day. It’s sensible to assume that you have to stand out from the crowd. But what can you do if you own a business where rewards aren’t so common?

Some purchases, such as insurance, healthcare, or other mandatory expenses, can feel like a necessary evil.?

We know we have to buy them, but they're not exactly the most exciting to spend our money on.

What if there was a way to turn frustrating expenses into valuable experiences? By going beyond just transactions, you could build a 360 picture of your customers and bond with them on a deeper level.

Making necessary expenses feel more worthwhile

(Full article here)?

While rewards like discounts or perks may seem small, they can actually have a big impact on how customers view a purchase.

Take the example of financial services. Many banks and credit card providers offer perks like cashback to customers that use their products and services.?

A necessary expense like paying bills turned into an opportunity to earn something back.

Let’s say you’re searching for a new home insurance policy.?

You know you need it, but the thought of shopping around and paying for it doesn’t quite fill you with joy…?

Imagine being able to earn points or perks every time you make a payment on your insurance policy.?

These points can then be redeemed for things like discounts on future purchases, or even experiences such as travel or entertainment.?

Wouldn't this make you more likely to choose this specific insurance policy that offers such perks?

?? Becoming the brand of choice

The company that offers rewards is more likely to be the choice - as it offers something the other company does not.? After all, 75% of consumers will favour a brand that offers a loyalty program.

Brands that offer rewards give customers an extra reason to stay loyal to them.?

Loyalty - it’s one of the most powerful forces in the world, but also one of the hardest to cultivate.

Recreating emotional loyalty we see in sports?

(Full interview with our CEO Achille here)

You may be thinking, “What do sports have to do with all of this?”

Loyalty programs are used by the sport industry as well.?

Their system is simple and straightforward – strengthen the relationship with their clients and reward regular customers with small perks or benefits in return for their attention, business and loyalty.

Customer acquisitions can cost up to 25 times more than customer retention, therefore the ability to build relationships is key.?

In most instances, loyalty isn't about a brand or product - it's about an experience. And that's why we can learn so much from sports fans.

Through good seasons and bad ones, football fans are unwavering in their loyalty to their favourite club. They wear their team's colours with pride, attend games in any weather, and even travel across the world just to show their support.?

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This kind of loyalty doesn't fade over time, either. In fact - the more time that passes, the more loyal people become to their teams.?

Brands need customers that are loyal in the same way as football fans - customers that will stick with them through ups and downs.?

?? Loyalty goes beyond transactions

You don’t support a team just because their season tickets are cheaper. You support them because of the passion you feel when they play.?

Rewards are the way to do this.?

In the sports world, fans can be rewarded with club-related perks when they perform certain interactions. This will allow clubs to gamify the fan experience and offer more value.?

??Pro Tip?

To recreate the emotional loyalty we see in sports, brands need to deliver rewarding experiences.??

Rewarding experiences tap into emotional loyalty. And it’s emotions that ultimately shape consumer behaviour.??

?? Before you go…

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