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Why loyalty programmes fail to engage


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daunting task, which is why many businesses end up stuck in the same old approach to loyalty. But designing a better loyalty programme


doesn’t have to be difficult. Great customer experiences have a few things in common: they recognise the customer’s relationship with the brand, add value to this relationship, and underpin all of it with a personalised touch. The same principles can be applied to loyalty programmes.


PRIORITISE RELATIONSHIPS OVER TRANSACTIONS Customers who are truly engaged with a brand will express this in a variety of ways, beyond simply making a purchase. This could include interacting with the brand’s content, recommending a product to their friends, or engaging with the brand on social media. Therefore, a successful loyalty programme


a discount. It’s just not that exciting. In fact, between complicated cash-to-points


conversions and clunky redemption processes, these programmes are often confusing more than anything else. Combine that with fairly generic rewards


and personalisation that goes little further than remembering the member’s name, and it’s easy to see why this approach to loyalty falls flat. Points-for-discount programmes simply aren’t great at creating positive emotional connections. The result is a disengaged and indifferent


customer base, with a thick stack of loyalty cards they rarely remember to use and the tendency to flit between whichever retailers are offering the best discount at the time. Yet where brands can meet the desire for


exceptional experiences, customers will truly engage and loyalty will grow.


MAKING LOYALTY MORE ENGAGING So, to win the hearts of modern consumers, brands must swap dull discount schemes for more engaging loyalty programmes that offer exceptional experiences. This can sound like a


should recognise and reward customers for all the behaviours that constitute loyalty, particularly when these actions generate additional value for the brand. Recent research backs this up, with 62% of customers showing an interest in being rewarded for activities such as sharing the brand’s content on social media, and 76% being interested in rewards for other specified activities. Practically, this might mean that you award


points to loyalty members when they interact with a quiz or survey, watch a tutorial video about a product they’ve bought instead of calling the help centre, or share a blog post with their social network. Not only does this incentivise engagement


with the brand as a whole, it also sends an important message to customers. By rewarding non-transactional behaviours, a brand communicates that it values the entire customer relationship - not just the amount of money it can squeeze out of its customers’ wallets.


ADD MORE VALUE - WITHOUT BREAKING THE BANK Engaging experiences give customers the sense that they’re getting significant value from their relationship with a brand - often more than they’re putting in. It’s the sum


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