Zsuzsa Kecsmar is the Chief Strategy Officer of Antavo Enterprise Loyalty Clouda leading provider of loyalty technology.
Loyalty programs are always evolving based on new technology, current social trends and even the way customers think. Wanting to learn more about what matters to loyalty professionals, my company’s research team conducted a survey and conducted several qualitative interviews. Survey participants and interviewees were asked for their views on the loyalty trends they believe will have the most impact over the next two to three years.
In the resulting Global Customer Loyalty Report 2023, we almost found that 8 out of 10 companies plans to renew their loyalty programs in the next three years. What are they thinking about? There are three surprising trends on the radar of loyalty professionals this year: strategic partnerships, card linking and ESG. I’d like to share a little more detail about each of these trends to make it easier for you to explore how they fit into your loyalty strategy.
Contents
1. Strategic partnerships: joining forces
Let’s start with strategic partnerships. These aren’t new brands – brands have been joining forces for decades to provide unique loyalty program offers, or to enable members of one program to earn points or rewards from another. However, this is seen as a critical trend going forward and continues to be a great way to build brand awareness by collaborating with other brands that have audiences with interests similar to your own audience.
Strategic partnerships have several advantages. They can add excitement and change to a loyalty program, especially after it’s been live for a while and customers are familiar with (and used to) the standard rewards offered. It’s a creative way to mix up the rewards catalog or run unique campaigns. Just think of Uber: the delivery brand collaborates with various brands and loyalty programs to reach new target groups and offer relevant benefits.
The biggest challenge in strategic partnerships is of course finding the right partner. The affiliate offer should resonate with your audience and create excitement so that it benefits your loyalty program and is not ignored. The partnership should also mutually benefit the partner, so spend time honing your value proposition before taking your proposal to a potential partner.
2. Linking Maps: Understanding Buying Behavior
I’ve seen card linking quickly gaining popularity in the world of loyalty programs. Commonly used by retail banks, we are now seeing more applications of card linking in the retail, travel and hospitality industries, among others. Card linking allows tracking of a customer’s payment card transactions. The customer registers his card to be eligible for new offers: for example, bonus points or cashback. Some loyalty programs even allow customers to register multiple cards. Brands get more information about member spending patterns, while customers have more opportunities to earn points and rewards without having to take extra steps.
Linking cards gives rise to a number of security vulnerabilities. However, new technical solutions have enabled card matching in loyalty, and I see no signs of slowing down this trend.
3. Supporting ESG causes: a better way to do business
Then there is ESG (environmental, social and governance). This trend connecting loyalty programs to support ESG may come as a pleasant surprise to your team, as loyalty programs and ESG have generally not been associated in the past. However, when you consider how ESG has come into the spotlight and become part of everyday conversation, it’s perhaps not too surprising. Customers demand more action and change in these areas. Loyalty programs may not have traditionally been where you would see support for ESG goals; however, it makes perfect sense for brands already committed to making a positive impact.
Every part of the brand that customers know and love can – and do should– also be part of the loyalty program. So, for example, if a brand prides itself on using sustainable manufacturing processes, why? should not sustainability part of the loyalty program?
New technology has made it possible for brands to reward customers for environmentally and socially responsible behavior, such as recycling old items and donating points. You can also use your loyalty program to highlight and reward customers for choosing the most environmentally friendly products available from a wider selection. On the social side, consider allowing customers to donate their points to social organizations and charities. While these types of programs are still in the minority, it will be great to see this trend really explode and have an impact on the way businesses and consumers interact. According to our research 50.8% of companies have plans to reward responsible behavior.
Many more loyalty programs are coming
According to Gartner Research, 1 in 3 companies without a loyalty program will have one by 2027. That’s why it’s so important to get in touch with trends and consumer interests so that your company doesn’t produce ‘more of the same’. Based on my experience and my company’s annual research reports, I’ve seen a significant trend shift since 2022. Companies need to embrace these trends and new opportunities to captivate and delight their customers through their rewards programs.
businesskinda.com Business Council is the premier growth and networking organization for entrepreneurs and leaders. Am I eligible?
Janice has been with businesskinda for 5 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider businesskinda team, Janice seeks to understand an audience before creating memorable, persuasive copy.