Eight types of loyalty programs that work. Secrets of the new generation loyalty programs One size fits all

Which loyalty programs are becoming a thing of the past, and which are replacing them? Some loyalty programs are effective in retail, but why don't they work in the restaurant or hotel business? I'll try to answer based on my experience in retail.

Discounts are not important, but an individual approach

Recently, many trading companies prefer bonus programs, refusing discount cards. Firstly, it is beneficial for retailers that the client constantly returns and makes more and more new purchases, and secondly, the accumulative bonus system assigns the card to a specific buyer, which allows you to analyze the demand of an individual, and not all his friends.

Today, a personalized approach is indispensable, because customers want to know about the availability of a very specific product in the store. For example, the Eurodom company, of which I used to be the CEO, used a loyalty program based on the study of customer preferences. When new collections arrived, we told specific customers about it, and the goods sold out in a matter of days: adherents of certain brands provided us with a steady increase in revenue.

Gradually, retail chains begin to realize the benefits of individual offers. So, according to one of the studies conducted by SAS together with the New Retail industry portal and the CRM Solutions professional community, 76% of networks still have offers addressed to all visitors, without any segmentation. But 23% of retailers already use the division into large age and gender groups, and 9.2% segment customers by purchasing power (“standard” and “premium”). Every fifth Russian retailer develops targeted offers for narrow groups and 11% make individual offers.

According to another study by Accenture Interactive, which surveyed 1,500 consumers in the US and UK, 56% of shoppers prefer to visit stores that identify them by name, and 58% are loyal to those retailers that keep a customer's shopping history. If three years ago only a third of buyers were ready to provide the retailer with detailed information about themselves, now there are one and a half times more such people.

What is good for the retailer, the restaurateur is at a loss

Somehow, the CEO of Restconsult and the owner of the Meat & Fish restaurants, Sergey Mironov, shared that restaurants have recently been massively introducing various loyalty programs, but they are not getting the expected effect. And he explained why.

In the restaurant business, loyalty programs are the same as in retail - discounts, bonuses, gifts for regular visits. Restaurants are actively implementing electronic loyalty cards and push notifications to inform customers about promotions, free tables, themed parties, and updated menus. They also develop mobile apps that allow diners to pre-order, track meal prices, and calculate loyalty rewards. The paradox is that all these technologies are of interest mainly to an audience with a low income - for example, students who do not do great weather for restaurants. And catering establishments still live mainly at the expense of wealthy guests, and you should not forget about it. By the way, for the same reason, the system of exchanging bonuses for gifts began to slip in retail. For people with incomes above average, this was not very interesting.

According to the restaurateur, loyalty programs in the HoReCa segment should not be tied to digital and mobile technologies at all: a person comes to a restaurant to forget about them and just have a delicious meal. Exploring a mobile app during lunch is like buying a theater ticket, where instead of a live performance, you will be offered to watch a play on a tablet.

I am absolutely in solidarity with colleagues from other industries - you should not blindly copy what is massively working in the retail market. Getting a discount on goods is one thing, most people strive for this, but when a person invites business partners to a restaurant, and at the end of dinner starts a conversation with the waiter about the accumulated points - this is not comme il faut. Those restaurants that practice free breakfasts and lunches and present new dishes are doing the right thing. Only one thing is required from the guest: write about their impressions on social networks or repost news about the event. This approach multiplies the number of customers, besides, the restaurant does not lose anything on free promotions, and even, on the contrary, earns: having eaten a free dish, a person will definitely buy something else.

Breakfast in bed is not important, but attention

In the hotel business, as in the restaurant business, there is no point in chasing clients with small incomes. They go to other countries no more than two or three times a year, which means that they do not return to the same hotel and do not justify spending it on participation in such programs. A typical member of the loyalty program is traveling at least 12 times a year. And in this case, the loyalty of a person to a particular brand is a big question. According to various experts, there are millions of people in the loyalty programs of large hotel chains, but only a third of them actively use the offered privileges. What is the reason?

If we are talking about the same bonuses, for example, it is not enough for people to convert them into free hotel services (laundry, breakfast in bed, taxis) or exchange them for miles from partner airlines. Both customers of shops and tourists need an individual approach to service. A person must see and understand that the hotel knows everything about his preferences and tastes and is ready to anticipate his every desire. This is why omnichannel approaches to customer service are more important in the hospitality industry than in any other industry. In whatever city a person stays, information about him should be stored in a single database of the hotel chain. But in the loyalty programs of many Russian hotels, alas, such technologies are not used.

Shopping club

In Russia, banking loyalty programs that offer cash back are becoming the most popular. And many retail chains are joining these programs. Demand is also growing for installment cards. It is understandable because all three parties benefit from them - the bank, the trading company and the buyer. By entering into partnership agreements with a store, restaurant or beauty salon, the bank receives a commission from each purchase, its partner increases revenue due to the growth in the number of customers, and the client himself gets the opportunity to buy goods on credit without paying interest on it.

Another trend is the use of chat bots in Telegram, Viber and Facebook messengers that conduct dialogues with customers. With their help, you can receive discounts or bonuses of the day, as well as a discount on your favorite products.

On the wave of popularity, all these programs in Western companies were some time ago. Now it is fashionable for our European colleagues to develop specialized clubs for the most loyal customers. Clients do not receive discounts, but are invited to various events, workshops and other closing events such as client days, sales or collaboration pre-sales. Gap, Adidas, Visa, MasterCard are examples of such companies. Many enterprises are merging with related businesses - for example, airlines with hotel chains. Of course, bonus loyalty programs in the West are also common, but there they offer to convert the accumulated points not into discounts on the next product, as is customary with us, but into useful services - for example, consultations of stylists in beauty salons or shoe care specialists in shoe stores .

Europeans also like to exchange bonuses for unusual experiences. For example, members of the Nectar UK loyalty program can redeem points for a ride in a vintage British Pullman sleeping car, a ride in a Ferrari or a speedboat. For Russian loyalty programs, such services are still rare. But there are also examples: the most frequent visitors to Modi stores will participate in closed sales and receive other privileges - for example, being the first to know about new collections. For them, we will also hold master classes with famous chefs who will agree to reveal the recipes of their author's dishes. Today it is not enough to give people back a percentage of their purchases. The resulting discount on the product is forgotten as quickly as the price itself. Meanwhile, the impressions received from communication with the store remain in the memory for a long time.

Flexible discount and reward systems for regular customers are an ideal option to build a long-term relationship between the store and the buyer. Using the example of American companies, we can consider the best results of introducing loyalty systems in the service sector.

Star system at Starbucks

One of the best examples of customer motivation comes from the world's most popular coffee shops. By introducing the My Starbucks Rewards reward system in the form of bonus stars that each visitor can receive when paying for an order with a card. Bonus stars can be exchanged for coffee, syrup, or tasty toppings. This system replaced the "loyalty for the elite" Gold, when the client had to buy a gold card for $25 and received only a 10% discount from the purchase.

Premium status from Best Buy

The largest electronics retailer, Best Buy, has introduced personal cards that accumulate points from purchases. As a result, customers can get about $50 back for a $250 purchase. However, this is not even the goal itself. The goal is to earn 2,500,000 points that will help you upgrade to a premium status and receive a unique discount newsletter, access to an online magazine and the opportunity to participate in private draws.

Loyalty for the elite at Neiman Marcus"

The largest premium goods store in America, Neiman Marcus, has developed its loyalty system in accordance with the characteristics of the target audience. The customer motivation system was introduced back in 1984. Its peculiarity is that club cards are issued only for purchases from 3,000 thousand dollars .Customers can accumulate bonus points and exchange them for services and purchases in partner stores and companies: American Airlines, United Airlines, Samsung Electronics.In addition, draws are systematically held among cardholders with valuable gifts and big discounts.

Bonus car rental from National Car Rental

One of the largest car rental companies in America, National Car Rental, the first in its segment, introduced a loyalty system back in 1987. By improving and modernizing it every year, it has achieved an absolute monopoly in its field. There are many benefits for Loyalty Card holders. From free car rental on certain days to the elimination of co-driver surcharges and expedited service.

Free stay at Intercontinental

Many hotels introduce a bonus program for regular visitors. The Intercontinental Hotel is no exception, with over 40 million members in their loyalty system, but only 30% of them are actively using the loyalty program privileges. The essence of the program is to accumulate bonus points, which can later be exchanged for free accommodation in Intercontinental hotels in any country in the world. In order to become a member of the loyalty program, it is enough to actively use the hotel's services for 12 months and access to the hotel's service privileges will be open.

The results of the success of these loyalty programs can be easily determined by the superiority of these companies in their segment. Customers want to feel superior and important, and companies that make extraordinary service decisions are the absolute leaders in their industry.

January 7, 2016

This morning I stopped at a gas station, and here a pleasant surprise awaited me, I did not pay a penny for a full tank of gasoline. And in a good mood on the way to work, I thought about what other programs and methods to increase customer loyalty are used by Russian companies.

Did you know that people who join a customer loyalty program are 168% more active than those who do not participate in it. At the same time, in the period from the 31st to the 36th month, they spend on average 67% more than in the first six months of cooperation with the company.

Many consulting agencies conduct special research to identify the best banks, airlines and retail chains that provide the best customer loyalty programs. I began to remember interesting facts about loyalty marketing and my personal experience, as well as the stories of my friends and colleagues who participate in loyalty programs for corporate clients and receive pleasant bonuses for this.

People who join a customer loyalty program behave 168% more actively than those who do not participate in it.

I present to your attention my list of tools to increase customer loyalty, which may be useful to you.

Loyalty card discounts

Usually, the discount program looks simple: customers receive cards that entitle them to a certain fixed discount. When the total amount of purchases reaches a certain limit, the percentage of the discount increases. This is how many retail stores operate: ECCO, Azbuka Vkusa, L’Etoile.

A good case of increasing brand loyalty through a discount program is the example of the construction company Legenda. All apartment buyers receive discount loyalty cards of the club "Legenda Friends" as a gift. Future tenants, as well as their friends or acquaintances, can buy an apartment with a 2% discount or a parking lot minus 100,000 rubles.

Future tenants, as well as their friends or acquaintances, can buy an apartment with a 2% discount or a parking lot minus 100,000 rubles.

With the help of discount cards, companies with minimal investment seek to expand their customer base. How is this possible? Yes, it's very simple - customers simply begin to transfer the loyalty card to their relatives, friends or acquaintances.

Discounts reduce business margins and provoke price wars.

Of course, such a system of bonuses has its drawbacks. Discounts reduce the margins of the business, provoke price wars and do not allow diversifying customer rewards depending on their value.

However, today the discount remains the most common and most effective tool for increasing customer loyalty for many companies in the world.

bonus program

In this case, the client accumulates bonuses for several months (stickers or points in proportion to the amount of the check), then exchanges them for special prizes or goods from the company's assortment.

At Telfin, we also use a bonus loyalty program for regular customers - "Bring a Friend". If a company recommends our solutions, we thank you and donate 1,000 rubles to your account. In turn, a new subscriber, to whom we were recommended, receives two months of free use of Telfin.Office PBX as a gift.

Personally, I constantly participate in various promotions and loyalty bonus systems of retail stores: children receive toys for purchases, adults receive discounts that can be used the next time they go to the store.

The development of a customer loyalty program using discounts and bonuses directly depends on the needs of the business. In the case of a correctly chosen strategy and competent implementation, a customer loyalty program increases the influx of new consumers. Customers also benefit, for example, in the case of gas stations - why go to the store to buy mineral water or glass cleaner, everything can be bought at the gas station, saving time and getting a discount.

Affiliate Loyalty Program

In my opinion, an affiliate program is also a fairly common tool for increasing loyalty, especially among banks and financial organizations, when customers accumulate points and receive rewards from partner companies.

Our affiliate program has been running for 4 years. Each company that brings new clients to us receives up to 20% of the monthly funds spent by them. Now 93 companies are already cooperating with us under this scheme, and every month there are 3-5 more of them.

For me, a striking example is the “Thank you from Sberbank” program. Last year, for the New Year, I became the owner of a brand new mobile phone, paying off the interest that the bank returns after each purchase.

The affiliate program is another opportunity to combine the efforts of two or more companies to attract new customers. The partnership allows the use of joint promotion - cross-marketing or co-branding - as a means of increasing loyalty among the client base of partners. Many organizations within the framework of cooperation even spend a common marketing budget, attract joint technological and operational resources.

I am sure that there are a huge number of other affiliate and bonus programs to increase customer loyalty. I would be glad if you share your experience of participating in a particular program.

Warning. This is not a user manual. Come up with your own non-standard motivation, while reading I came up with a few (2) interesting motivations, I'm sure you will get more!

1. One of the companies that provides Internet services has stopped all disputes about the annual salary increase using dice. Employees roll dice for good luck: the increase in salary can be from 1 to 6%, depending on who, what figure will fall on the dice!


2. A Russian company has created a kindergarten that solves a whole range of tasks: employees do not have to stand in line for places in state kindergartens, the loyalty of specialists increases, the return of young mothers to work before the end of maternity leave is much more painless. The average age of an employee — 27 years old, 40% of specialists are married, 59 married couples work in the company. Many have small children (and many of those who do not yet have children are planning to have them in the near future), approximately 40 employees take parental leave every year. The corporate kindergarten has become an example of the implementation of an employee initiative that is fully consistent with company values.

3. Naked Fridays. The management of the English company Onebestway turned to psychologist David Taylor with a request to raise the morale of their despondent employees. Taylor proposed the introduction of "naked Fridays" - one day a week to take off your clothes, and the complexes along with it. At first, the employees accepted the idea, to put it mildly, without enthusiasm, but, in the end, almost everyone completely undressed - except for one man who covered himself loincloth, and a woman who could never be persuaded to take off her underwear.

4. Facebook. Mark Zuckerberg's office has been located in Palo Alto since 2009. When designing the interior, the opinions of all employees were taken into account, who took part in many issues - from construction planning to finishing. The highlight of the office is that the management is based in its very center and is open for communication with every interested employee. There is a basketball court in the courtyard, and employees can move around the office on skateboards.

5. Many global companies, following the headliners, adopt the experience of creating original and employee-oriented offices. For example, employees of one of the architectural firms in Madrid work in a forest near the city. Their office is a streamlined tube lying on the ground, the interior is decorated in shades of green.

Tin (if you are under 22 years old, do not read)

6. Orgies for excellent students. The German insurance company Munich Re decided to encourage especially distinguished employees by arranging an orgy for them with the participation of professional priestesses of love. The event was an outdoor event and took place in one of the spas in Budapest in 2007. According to eyewitnesses, everything was organized with traditional German pedantry: ribbons of two colors were tied on the wrists of all the girls from the service staff - red denoted waitresses - they should only be contacted for drinks and snacks. Girls with yellow ribbons provided other pleasures to insurance sellers. After each client, the girl was given a special stamp on her hand in order to find out how much she had already “earned”.

7. Employees of Invention Land, located in Pittsburgh, create about 2 thousand inventions a year and issue a new license every 3 days. There is an opinion that the originality of the office, conditionally divided into 15 spaces, helps the team to tune in to the creative. Each zone is a scenery in the style of fantasy stories. You can work on a pirate ship, in a dollhouse and even in a toy auto track. The unusual office opened in 2006. Company founder George Davison conceived it as a constant source of inspiration and motivation so that employees could regularly create new products.

8. Software company Asana has developed a culinary approach to employee motivation. The owners have hired skilled chefs to prepare meals for the employees that stimulate their creativity. The menu should be not only tasty, but also useful, stimulate brain activity, eliminate drowsiness. Also in the office of the company there is always chocolate, which, as you know, is a good antidepressant and helps creative thinking.

9. Another interesting example of the "power of the word" was the empire of Steve Jobs. The consultants of his company, that is, people who are creative and intelligent, occupied a position with the modest title of "genius". This idea had a double benefit: of course, the leader emphasized that only direct people work in his staff, who, in turn, were very proud of their status, worked well in order to justify the trust placed in them.

10. Walt Disney in the middle of the last century understood the importance of a non-standard approach to motivation. In his department there were hotels at amusement parks, where, in addition to prestigious management positions, there were also technical departments, in particular laundries, in which there was a high turnover of personnel due to the prestige of work and difficult working conditions. But the founder of the Walt Disney Company was famous for his ingenuity in motivating staff and found a way out of the situation. Laundries got the proud name of "textile services". Thus, they became a whole division of the company, as a result of which employees felt their importance, and all negative aspects faded into the background.

11. The franchising network of the Masterfabrybr company, which has 33 branches in Russia, Ukraine and the Baltic States, has introduced its own corporate currency - “kenga” to increase motivation. The employee who collects the most keng receives a special prize - a gold coin. After collecting 50 of these gold coins, he can exchange them for a free trip to Australia. And ordinary coins can be exchanged for pool or sports club subscriptions.

12. Japan General Estate Co offered a cash reward of $3,000 to the manager who would establish the warmest relationship with the team. Conflicts have been eliminated, the general atmosphere has improved, and the cost of this is quite democratic.

13. In one of the chain stores of mobile phones and accessories, sales assistants received 1 sq. cm of living space for each phone sold. The action lasted for several months. During this time, the leader earned 20 sq.m. However, due to the fact that there are no apartments with such an area, he was awarded a certificate for a similar amount.

The best job in the world.

14. Perhaps the most colorful example of non-standard motivation was from the tourism department of the state of Queensland, Australia. It thundered all over the world in 2009. In order to draw attention to tourism in Australia and find an employee, they organized a competition. Everyone was invited to compete for the position of caretaker of Hamilton Island - "The best job in the world," as stated in the announcements. Not a dusty job, life on a beautiful island and a salary of $150,000 for six months! To win, you had to shoot the most creative video about why you deserve this job. Of course, there are people all over the world who want to. A Russian woman even made it to the final of the competition. But the vacant post went to an Englishman. He worked there for half a year and became so famous that he continued to work, changing his position from "observer" to "tourist ambassador". By the way, now the Australian tourism department is again announcing a competition for the best job, only this time there are 6 positions: a party-goer, a photographer, a taster, a traveler, a ranger, a conservationist. Each will receive $100,000 for six months of work.

15. The management of the Perekrestok supermarket group came up with an unexpected reward for the best employees. They can easily be "expelled" from their homes, however, while providing a better position elsewhere. It looks illogical from the point of view of the work of a separate unit, which is losing valuable personnel, but, understanding the prospects, the employee in his position will do everything to be noticed and promoted. His productivity is beyond all expectations.

Loyalty programs - business driver!

Loyalty programs have taken over the world. Companies massively launch customer incentive programs. And this makes economic sense. According to research by Rosetta Consulting, loyal members are 90% more likely to shop and spend 2-3 times more than non-members. Amazon is investing billions of dollars in loyalty programs for a reason. In a customer-driven world, a high level of customer focus is an essential element of a sales strategy. Loyal customers are the company's main source of income. In the early 2000s, researchers got a phenomenal result - a 5% increase in customer loyalty leads to an increase in company profits by 25-95%!

Launching a loyalty program is an investment in the long-term development of the company. Its impact on brand satisfaction is even greater than price and perceived value. Thanks to the recommendations of loyal customers, companies attract new customers and reduce marketing costs for acquisition.

To hell with loyalty programs!

A study by the Boston Consulting Group notes that loyalty programs often don't pay for themselves. The company calculated that in order to compensate for the cost of promotion and operational management of the program in the amount of 3% of revenue, sales would need to grow by 10%.

All over the world, traditional ways to stimulate customers through discounts and bonuses are becoming less and less effective. There are a number of explanations for this.

Every year the number of loyalty programs is growing exponentially. The wallet of buyers no longer holds all the cards, some of them have moved to mobile applications, but this does not change the essence. In the US, on average, a customer has 29 loyalty programs, of which he actively uses no more than 12. In Russia, the figures are not much better. According to RBC Research, 58% of loyalty cards remain practically unclaimed.

Decreased activity of participants. As a result of the growth in the number of programs, the average involvement of participants is constantly falling. Clients are fed up with the same type of classic discount or bonus programs. To attract the attention of buyers, you need to increase the attractiveness of the reward. But this cannot be done without reducing the profitability of the program.

McKinsey conducted a study among 55 of the world's largest retailers about the effectiveness of loyalty programs. The results of the study are sobering - revenue growth in companies that invested in loyalty programs is similar or even slightly worse compared to companies that did not.

Are loyalty programs an effective investment or a waste of company resources?

Both positions are sides of the same coin. A loyalty program is one of the tools for building relationships with customers. Those companies that skillfully use it achieve impressive results. “Hospital average” loyalty programs do not always live up to expectations. The problem lies not in the tool, but in how it is used. The decline in customer interest is connected not only and not so much with external factors. The main reasons lie in the poor quality of implementation and subsequent management.

Key mistakes in the implementation of the loyalty program

Uneconomical economy

Most of the problems associated with the incentive model are laid down at the design stage. Sometimes it seems to companies that developing a loyalty program is easy and simple. Accrued there, wrote off here. Delov then! The main thing is to buy the right software. Alas, this is far from the case. Behind the apparent simplicity lies a carefully thought-out mechanism. A well-designed program is mathematical models, consumer psychology and trade marketing all rolled into one.

Giving discounts without understanding how the company will recoup such investments is a generosity attraction that is bad for its financial performance. The launch of the program does not automatically lead to an increase in sales from the first months, but it definitely reduces the margins of the business in the short term due to the budget for rewards and the operation of the program.

The most active participants are loyal customers who regularly consume the company's products and are unlikely to spend more. Their share of wallet (the share of purchases from the total need in the category) is close to 100%. Customers who rarely make purchases receive few bonuses, which means that the loyalty program has little effect on them. What happens? The margin of loyal customers rises slightly or even falls due to the cost of bonuses, and those customers who can potentially increase consumption do not receive the necessary incentives.

A well-designed program is a combination of mathematical models, consumer psychology and trade marketing.

It is possible to improve the economy of the program and at the same time increase its attractiveness for various categories of consumers using a system of levels and targeted campaigns to “grow” regular customers.

Cut seven times, measure once

At the design stage, lays the foundation, but the main work begins after the launch of the program. Analysis, testing, optimization, evaluation are regular tasks that need to be done day in and day out. Which client segments are the most sensitive to bonuses, what is the correlation between the amount of remuneration and consumer activity of the client. This information is the basis for optimizing the incentive model.

A team of specialists is needed to manage the program. Many companies cannot afford to have a separate staff for this, or do not see the need for it. This leads to the fact that the results of the program are not measured, there is no comprehensive approach to assessing indicators. And as the saying goes, "you can't manage what you can't measure." Decisions are made on a whim by trial and error. As a result, the loyalty program instead of retaining customers, on the contrary, becomes the reason for the outflow of consumers.

One size fits all

Behind the abstract participants are people - unique and contradictory. They have different needs, decision-making patterns and consumer habits. The main driving force behind the loyalty program is customer centricity, which is formed on the basis of a deep understanding of the behavior of various consumer segments.

Imagine if you offer your client not bonuses, but shoes as a gift. Moreover, there are only elegant shoes in size 38 or sports sneakers in size 45. Now estimate what proportion of customers the gift will be in size.

The same goes for loyalty programs. Offering a single incentive model for participants, the company a priori loses a significant part of the target audience. It is either extremely difficult for clients to accumulate bonuses, or the reward is not attractive. Capgemini Consulting found that 44% of social media conversations revolve around irrelevant incentive models and unattractive rewards.

How to create a next generation loyalty program

Stop spending, start investing

As mentioned above, a common problem with loyalty programs is the lack of a clear strategy for working with different customer segments. The program becomes profitable when the company understands who, how and for what receives bonuses. Imagine that for each client a profit margin is set, on the basis of which an individual package of offers is formed. Segment goals should be reflected in the operating model of program management.

A good customer incentive model starts with an assessment of the customer's prospects for the company.

The right customer incentive model starts with an assessment of how promising the customer is for the company. CLV is a guiding star that indicates what level of rewards is acceptable for a particular participant. CLV is not just an indicator, but an ideology of working with clients, which is based on a total analysis of all interactions between a consumer and a company. To understand the value of a customer, it is not enough to measure financial indicators; consumption patterns, preferences and vital interests are important. According to research by Nielsen and McKinsey, the use of a value-based approach leads to increased consumption among the most profitable and loyal customers and a decrease in untargeted incentive spending on unprofitable and disloyal customers.

Personalize your membership

Geolocation and transactional data, responses to promotions, social media activity, analysis of calls to the help desk are bits of information that together create a digital shopper genome. Data is the new fuel for loyalty programs. The current level of technology development makes it possible to implement individual trajectories of client participation in the program based on the analysis of many factors - from purchase history to analytics from CCTV cameras.

Data from various sources of information form the consumer's digital genome.

Bond found that 2/3 of the programs did not apply a relevancy analysis of rewards to participants. Nothing kills interest in a program like uninteresting prizes. The personalization of the reward system affects the activity and satisfaction of participants without increasing the cost of incentives. For example, some customers do not use bonuses, their consumer behavior does not change after joining the program. This may be due to the unattractiveness of rewards, or the method of motivation does not meet the needs. In this case, other mechanics are tested - special service conditions or non-material motivation tools - participation in a socially significant initiative or charity event.

Combine different types of customer motivation

Unfortunately, the vast majority of loyalty programs affect the rational loyalty of customers, built only on the stimulation of purchases and completely ignore the emotional component. The result is dull and monotonous programs that do not arouse any enthusiasm among consumers. They encourage brand tolerance instead of really building long-term loyalty. The emotional involvement of participants is not a one-time creative, but a strategy thought out with engineering precision to keep customers' attention and stimulate the required consumption model. Gamification, sweepstakes, non-purchase initiatives, educational projects, surprises and instant prizes, competitions, etc. The ingredients are known, it only remains to prepare and serve correctly.

The emotional involvement of participants is not a one-time creative, but a strategy thought out with engineering precision to keep customers' attention and stimulate the required consumption model.

The sole purpose of most programs is to encourage transactions; other aspects of the consumer-company interaction are overlooked. Encouraging any activity around the company, including reviews, participation in promotions, posting, creates an additional emotional connection between the brand and the buyer. At the same time, it is important to understand that this kind of activity cannot be stimulated with material bonuses, it corrupts customers and attracts prize hunters.

Nurture an omnichannel model of interaction with the company

Cultivate an omnichannel model of interaction with the company Point of sale, website, mobile application, social networks, chat bots - this is not a complete list of ways to communicate with customers. The combination of different channels of interaction increases the reach of the audience, since the customer experience is not limited by the geographic location of the buyer or the time of day. The omnichannel consumption model is sweeping the world with leaps and bounds following the spread of mobile devices.

A loyalty program is a great tool for building new habits and consumption patterns. Let's take an example. Traditionally, offline retail has one channel of interaction with the buyer - the point of sale. If a person installs an application that allows you to make a list of purchases in a store, then his customer experience will expand beyond the point of sale. Why not stimulate such a consumption model with the help of a loyalty program - I made a list, bought it, received an increased accrual of bonuses.

Obviously, the loyalty program should be available through the channel that is available to the client at the moment. Someone prefers a beautiful card in their wallet, while someone prefers to use a mobile application or just give a phone number. Having a presence across multiple channels allows you to capture customer insights and use it to optimize future interaction scenarios.

Actively manage customer experience

Surprisingly, the fact is that traditional loyalty programs do not work with customer claims and problems. Moreover, loyalty programs are on the balance sheet of marketers, and complaints and suggestions go to the service and / or sales departments. According to statistics, 71% of customers leave the company because of poor service. The question is, why does the client need bonuses if the level of service is categorically not satisfied? Every company has problems. But leaders know how to take "feed" from customers in time and smooth out claims. A description of approaches to dealing with negative customer experience can be found in.

The new generation loyalty program is aimed at creating a positive customer experience and smoothing out difficult situations (claims, malfunctions, bad customer mood). Another direction in the evolution of loyalty programs is to increase the value of a product or service. The program should create a tangible benefit, solve the customer's problem. A great example is the Amazon program. Members of the program do not pay for shipping every time they place an order.

Conclusion

The loyalty program is an asset of the company and an additional competitive advantage. At the same time, it is no longer enough to distribute bonuses to customers. The classic discount and bonus mechanics are being replaced by comprehensive new generation programs that solve a wider range of tasks than just incentives for repeat purchases.

Fokin Mikhail, Managing Director of NGM