the (ugly) truth of the loyalty point program: what marketers say vs what customers hear
TRANSCRIPT
2TRUTHTHE
OF THE LOYALTY POINT PROGRAM
(UGLY)
What Marketers Say What Customers HearVS
2NICESKY AIR
WITH
The traditional loyalty program
scopes around deferred gratification; slow
accumulation of points leading to large
redemption events.
Nowadays, several big brands
implement a “points ubiquity” approach; making the program
broader and increasing the number of
collection points.
ICY
NICESKY AIRWITH
icy
Nowadays, several big brands
implement a “points ubiquity” approach; making the program
broader and increasing the number of
collection points.
ICY
NICESKY AIRWITH
icy
BUT DOES IT REALLY
CREATE CUSTOMER LO
YALTY?
1 The Points Accumulation
TRUTH (UGLY)
1 Give customers
MORE WAYS to accumulate points
What marketers say:“ icy
So you can get
to
the redemption
point faster.
Give customers
MORE WAYS to accumulate points
What marketers say:“ icy
icy
Give customers more ways to
ACCUMULATE points
What customers hear:”
icy
Give customers more ways to
ACCUMULATE points
What customers hear:”I don’t h
ave to b
uy from
you to g
et points
.
... there’ll no longer be a strong bond between
your brand and the customers.
If most points are earned outside
at the partners network, ...
TRUTH (UGLY)1
2THE REWARDS
TRUTH (UGLY)
2 NICESKY AIRWITH
icy
Earn a lot of points and
get BIG rewards
What marketers say:“
NICESKY AIRWITH
icy
Buy from us an
d our partners
to collect
a lot of points
and redeem bi
g rewards.
Earn a lot of points and
get BIG rewards
What marketers say:“ NICESKY AIRWITH
icy
MyCoffee
Earn a lot of points
and get BIG rewards
What customers hear:”
icy
MyCoffee
1Forget
the big rewards
.
It’ll take me f
orever to get
them.
Earn a lot of points
and get BIG rewards
What customers hear:”
1...even though
the rewards are big.
Geared towards the heavy buyers,
the long tailed points program causes the less heavy buyers to lose their interest in
reaching the redemption points, ...
TRUTH (UGLY)2
TRUTH (UGLY)
LoyaltyThe
Stay with
OUR LOYALTY PROGRAM and you’ll get privileges
What marketers say:“NICESKY
AIR
NICESKY AIR
NICESKY AIR
Stay with
OUR LOYALTY PROGRAM and you’ll get privileges
What marketers say:“
Our loyalty prog
ram offers gre
at privileges
through our bra
nd and partner
s network.
icy
Stay with our loyalty
program and you’ll get PRIVILEGES
What customers hear:”
2It’s cool
to be a memb
er of
your loyalty pro
gram.
Stay with our loyalty
program and you’ll get PRIVILEGES
What customers hear:”
2...keep their
membership for the status, not the brand
loyalty.
Many members of big loyalty programs,
especially the Frequent Flyer
programs, ...
TRUTH (UGLY)3
icy
The “points ubiquity” approach, instead of driving
more loyalty towards the brand, turns the loyalty program into merely a
points exchange scheme… which doesn’t create true
customer loyalty.
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Watch the full video of
Common misconceptions
of loyalty program
by Regan Yan here
www.digitalalchemy.asia
?