Loyalty programs have become the part and parcel of almost every company or brand. Engaging customers has become all the more difficult at this point in time and introducing innovative and exciting strategies to engage and bring more consumers to purchase products from partnered brands has become crucial. The tried and tested methods of gaining attention of target audiences has now shifted to a different tangent hence, learning about the new trends that are influencing loyalty programs is highly recommended. On looking deeper into this subject, these 5 trends mentioned below seem to be the most influential strategies in the realm of loyalty programs.
There are several kinds of philosophies in terms of redemption of rewards. Some reward loyalty programs by different hospitality companies are extremely straightforward, as they say on their schemes are clearly slated on website like“Accumulate 14 nights, get 1 night’s stay free.” This is to ensure that customers are redeeming their rewards instead of expiring rewards, blackout dates and continuous degradation of the value of the reward points assigned by the loyalty programs, that may discourage the customers.
Nowadays, we get to see a plethora of premium reward loyalty programs. The main reason why premium loyalty programs are becoming extensively popular is because the members want the advantages and benefits that a premium program offers and are willing to pay for it as well. In a recent consumer study from the former year, 62% of the subjects admitted that they would consider joining a reward loyalty programthat was fee-based if the provider or retailer was of their choice.
Introducing rewards that have the ability or capacity to evolve into another offer or reward or could be combined with other offers, would make reward loyalty programs much more appealing and attractive to existing and new customers. Allowing a guest to trade their offer with something that suits their requirements and preference can definitely boost a loyalty program. The concept of combining of unused rewards into a bigger and more appealing reward can be a great hit amongst loyalty program consumers.
Chatbot and AI
Though chatbots or artificial intelligence cannot technically replace an actual human interaction, chatbots seem to be the most effective medium when a customer is trying to resolve common trivial issues. Chatbots reduce the need for customers to visit the website or store, etc making it faster and more efficient due to the increased chances of reduced human errors.
The ever-growing consumer industry has been growing and changing their strategies for years. It has tried to break through from a tier-based system to a more personalized loyalty program that caters to specific sections of the target audience. In this new archetype, you would receive a reward based on your previous purchases or will be tailored to your specific needs. One loyalty program member might wish for an exclusive event entry and another might require the best suite with the fastest wifi and giving a reward based on their personal requirements would gain their attention more than generic mass-planned loyalty programs.
Trends are often a fast-moving phenomenon and is driven by various factors and the aforementioned are the biggest trends that are likely to reign in the world of reward loyalty program. They are an estimated vision of how the trends would influence the next-Gen loyalty programs.