The typical U.S. consumers belongs to 16.6 loyalty programs. So how can your business offer standout experiences and stay ahead of your competitors in 2024? Here are five ways to elevate your loyalty program strategy and brand.
1. Differentiate your brand by mixing transactional and experiential benefits
91% of consumers feel that loyalty programs are too similar, so it’s important to go beyond the buy stuff, get points approach. Starbucks, for example, launched its Odyssey experience as part of its rewards program. This gave members unique interactive journeys and experiences, leveraged web3 technology and added a personal touch to the member journey.
2. Consider adding a paid loyalty experience
Research shows 60% of consumers spend more with a brand if they have a paid loyalty membership. Amazon Prime and fast-food restaurants like Panera and sweetgreen offer subscription-based loyalty programs. These programs generate steady revenue while promoting regular in-store visits.
3. Make earning and redemption faster and more flexible
Nearly half of consumers think it takes too long to earn rewards. Offering a variety of ways members can earn and redeem rewards helps get them to redemption milestones faster. Partnerships can help expand your value proposition while giving members more ways to earn and redeem. Airlines often provide multi-faceted loyalty programs where customers can earn miles through flights as well as credit card partnerships, dining and shopping.
4. Introduce tiers to boost value and engagement
34% of consumers prefer loyalty options that align with their shopping habits. Many retailers use this loyalty program strategy to foster a sense of exclusivity and engagement. Sephora’s Beauty Insider program offers tiers based on spending thresholds and perks such as exclusive events and early access to products.
5. Improve personalization by leveraging zero- and first-party data
62% of online shoppers admit non-personalized experiences weaken brand loyalty. Sephora’s Beauty Insider Community uses quiz and survey data to deliver custom recommendations and personalize in-store experiences.
Revitalize your loyalty program strategy with these tips to foster long-term customer relationships, build emotional bonds and drive growth in 2024.
About Hydrate
Hydrate is a human-centric loyalty agency that believes that loyalty’s full potential is unrealized in today’s marketing mix. We help brands rethink, create, and optimize their loyalty and CRM initiatives to resonate with their consumers while maximizing their investments in those channels. Our expertise and future-forward innovations in loyalty are grounded in one simple belief: Brands obsessed with their customers create customers obsessed with their brands.
