What Future of Loyalty Programs Looks Like

The Future of Loyalty Programs

Here at White Label Loyalty, we often say that we believe we are the Future of Loyalty. So what does that mean, you ask? Let us tell you what we think the Future of Loyalty Programs looks like.

mobile appMobile

From Google algorithms to millennials; clearly, mobile is the future. With numbers of global smartphone users growing steadily every year, mobile advertising surpassing $190 billion in 2019 and consumers expecting to be able to interact with businesses through apps, there’s no greason to expect loyalty to be an exception. No matter if you already have an app or need us to build you on. A loyalty program should have a mobile first approach. Simply plug in the loyalty engine, choose an API that suits your customers, and go!

dataData-driven

Data is everything, and everything is data. If you’re running your business without making most of your database, go back to the 20th century. Your loyalty program should start and end with data. Segment your audience, set reward rules, A/B test and start listening. Your data is telling you a story and it’s up to you to understand it. With our marketing and analytics dashboard, it doesn’t take a genius to understand what’s happening.

 

integrationsIntegrated

Just as marketing is turning omnichannel, data must also be integrated. Building on our previous point, it is important to understand your data in the bigger picture. That’s why your loyalty program should be integrated with your CRM, eCommerce, ePOS systems and other software platforms. Make any data rewardable!

 

APIAPI-led

We believe in flexibility and frictionless experience in loyalty. And that can be achieved through a futuristic API-first approach. Why should you spend time and money on developing a new app from scratch when all you need is a handy API? Our flexible modular architecture allows us to help any business, in any industry, in record time. So opt-in for a loyalty API and power your existing infrastructure today. Discover the Future of Loyalty Programs!

 

AIAI-powered

AI is taking over search with Voice Search, home electronics with Smart Home appliances, and now even loyalty programs! Using AI modelling can help tap into that ever-important metric - lifetime value. This helps not only to target the right customers but also to deliver the right message, at the right time, for less money. No brainer!

 

Card LinkingCard-linked

This one’s a bonus for you retailers and hospitality operators out there. Long gone are the days of paper and plastic loyalty cards. Not to repeat ourselves but go mobile! With our card linking technology, your customers’ experience is about to get real smooth. No more “Do you have our loyalty card, sir?”. Your customers’ payment cards automatically send real-time data to their loyalty app account, meaning they will never miss out on their points again. And you will never have the headache of connecting offline and online data. It’s a win-win!

 

 

So did we convince you of our futuristic approach? Let us know!

 


Loyalty programs: expectations vs. reality

Loyalty Programs: Expectations vs. Reality

Life is full of surprises. It feels that nothing is as it seems. We welcomed 2020 with open arms and we were blessed with a pandemic. Today, we’re here to reveal some expectations vs. reality about loyalty programs. We don’t mean to burst any bubbles here but let us set a few things straight...

 

Loyalty programs are set up & then run without much effort

You might think that for the most part, loyalty programs require a thought out strategic set up but once they are configured, don’t require many changes. In reality, loyalty schemes, just as any other part of your marketing activities, are always evolving. In order to run a truly successful loyalty program, behavioural data is necessary. Make sure your systems are set up in a way that allows you to easily analyse customer behaviour. Look for outstanding patterns in your customers’ behaviour and trial new types of rewards. Collect data and learn from them. Think about your rewards the same way you do about digital advertising. Perform A/B tests, gather insights and run data-driven campaigns. We promise you will see results.

Did you know however that most loyalty programs fail if they don’t have the right tools to monitor and make changes quickly? Consider employing a trusted and reliable loyalty platform that ties all the ends together. Check out what our Loyalty Engine can do here.

 

It’s all about collecting points

Au contraire, dear friend. Your loyalty program should be a part of your wider integrated brand activation strategy. After all, your most loyal customers are your best and easiest audience since they are already listening to you. This makes your campaign ROI sing and your execs praise you. Think of your loyal customers as your brand’s friends. Invest as much into these relationships as you do in your real personal friendships. (But maybe don’t tell them about all your deepest secrets.) After all, 80% of your revenue generally comes from only 20% of your most loyal customers. That’s worth investing in!

Think about where you can provide value, even if it’s in seemingly small details. Being understanding to your customers’ needs is the most rewarding and profitable way forward. Your loyalty program should reward customers’ activities that both you and your customer profit from. Keep your program engaging and interactive - give gamification a try or consider real-time experiences. The rewarding world is your oyster!

 

Loyalty only works in B2C

Although we tend to think of retailers first when talking about loyalty, it has its place in all industries. That is including B2B. Take it from us, White Label Loyalty has been helping B2B businesses thrive on loyalty across industries. From food and drinks brands connecting with retailers, to plumbing equipment providers. You can’t make that up! Depending on the nature of your business, developing a loyalty program with your B2B clients might be even more important and profitable than in the B2C world. The mechanism works the same - find what adds value to your customer experience and start there. Don’t forget to also monitor your competitors’ strategies. Benchmarking can lead you to unique added benefits you could be providing. If you’re interested in finding out how a shiny new loyalty program could work for your business, get in touch with our loyalty specialists!

 

Loyalty programs are expensive to build and run

If built correctly, loyalty programs should pay for themselves in the long run. Using a mobile app to send push notifications can help drive engagement and repeat purchases. It also provides a better customer experience, helping to form a stronger customer relationship. Furthermore, studies have shown over and over again that retaining strategies are five to twenty five times more cost effective than acquisition strategies. So think about which activities you want to put your spend into. 

 

Where to next? Why not get inspired by the immense success of Emma’s Diary’s new loyalty driven app!


China's Market Recovery: An Insight Into Post-Lockdown Shopper Behaviour?

China has emerged from its lockdown slumber and into a stabilisation phase, inching back to normality one week at a time; China's experience can give us a glimpse into the future how shoppers will react once the curtain slowly starts to lift.

That being said, China is a very different place to the UK's in many ways. For example, can you imagine the UK government releasing an app that assigns us covid health codes that dictate whether we can go to work, enter cafes or shopping malls? Look at the resistance to the NHS contact tracing app here in the UK!

However, we can draw macro-level insight from how people are behaving. For example, a focus on cleanliness and hygiene within retail environments, across the globe, will be a long lasting effect of C-19 on the shopper experience - sanitiser stations in retail will be part of the new normal.

But what else can we garner from China's recovery? A recent pulse report by Havas highlighted how the Chinese are discovering and shaping their "New Normal" and I have summarised the key findings here below:

  • 5 weeks after lockdown was relaxed 77% of stores had experienced +50% traffic - every week sees footfall increase.
  • Outdoor outlets showing the highest increase in footfall, driven by younger demographic.
  • Restaurant sector is recovering slowly, good deals/discounts are the core driver for tempting the consumers back into F&B establishments.
  • 58% are cooking at home, part of the adjustments made during lockdown and will remain as part of the new normal.
  • People are focused more on practical needs when shopping, rather than shopping for pleasure.
  • 65% Chinese actively prefer national brands and will continue to source Chinese products first.
  • Live streaming sales have been very effective, using influencers to support local producers badly affected by the crisis to help sell their produce.
  • Consumers will be more restrained on spending, particularly the 45-60yrs demographic with younger consumers more likely to "revenge spend" post lockdown.
  • Local convenience stores have seen a 15% upswing, as consumers still feel nervous about proximity to others.
  • Bank Holidays will play key part in the rebound, 800m Chinese planned to travel on the over the Labour Day holiday period, although mostly staying relatively local.

Source: HAVAS China Market Pulse Vol.5 2020

How translatable this insight will be into our post-lockdown lives, only time will tell, but this insight is the closest thing to a crystal ball that we currently have (toilet-roll hoarding certainly broke through international boundaries didn't it!)

I agree that the rebound will be led by products/services that add enjoyment to daily life. We can all relate to this, we are desperate to get back outside and indulge in the small things we have missed - the marketing messages that promote positivity will win.

With my brand loyalty tinted glasses on, China's experience shows how important promotions/brand activations/loyalty based promotions will be in helping brands to recover lost revenue. Just before we transition into recovery, brands have a perfect window of opportunity to reach out to their customers via digital marketing (whilst we are all spending more time online) to push out promotions to your customer base, ready for re-opening. For those likely to be most impacted, F&B/Hotels etc, the O2O channel is your life raft - please book in some time with me if you need help offering digital rewards/promotions to your customer base.

A word of warning for marketeers, avoid epidemic related marketing, I think we have all heard enough!

If you are interested or have an opinion on this, please drop me an email (rob@whitelabel-loyalty.com) to be part of my next article/research piece. We're bringing together leading voices across brands and agencies to gain your thoughts on what the post-lockdown shopper marketing experience will look like.


Hospitality operators failing to tailor loyalty programmes to consumers

Yet more evidence that large companies are still getting it wrong! A new global study showed that diners want more personalised rewards and generally find the loyalty offers not relevant to them. Hotel & Restaurant customers said personalisation based on their stated preferences would be far more appealing.

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Mobile Strategy in the hospitality sector

Loyalty Moves to Mobile in the Restaurant and Hospitality sector

Loyalty Apps give consumers easier access to rewards, in fact a recent study showed 52% of millennials want to use their mobile devices to take advantage of loyalty programmes offered by restaurants, bars and coffee shops etc, rather than their loyalty cards, which get lost and forgotten frequently.

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Are the days of loyalty cards numbered after Tesco’s change?

Some of you may know that Tesco recently made cuts to it’s Clubcard rewards, causing quite a controversy!

Customers, some who had saved their loyalty vouchers for as long as 23 years (when the programme was first introduced in 1995) were not happy and didn’t hold back on expressing their outrage.

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Loyalty Programmes are essential for retailers

A recent study showed that a large proportion of consumers (94% to be exact) would use a mobile wallet more often if they could earn loyalty points with each transaction.

Consumers also stated, in another study, that they see loyalty schemes as a ‘must-have’ for any restaurant or retail outlet.

The ugly truth is… 75% of loyalty programmes fail due to lost or forgotten cards.

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Why Customer Loyalty Programs Are So Important in the Retail Sector

The point of Loyalty programmes is to drive market share and although retail executives recognise the importance of customer loyalty programmes in this process, few have taken in depth action.

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