Wednesday, May 25, 2011

Fundamentals of Loyalty Marketing

Fundamentals of Loyalty Marketing
In the old world of loyalty programs, communication predominantly focused on the tangible benefits available to the consumer - what I call the "ER" words, that is to say, "Our program is..." 'bigger,' 'better,' 'faster,' 'easier.' As all organisations adopted these terms they have now ceased to have meaning. Everything works now. As such, the market has changed in that consumers are demanding more.

Rewards have evolved in the marketplace from being a nice little extra for one's loyalty to being perceived as an entitlement (partly the result of the commoditsation of loyalty programs). Concurrently, consumers have shifted, to some extent, away from a desire for possessions to a desire for experiences - partly due to changing demographics. Overall, consumers are looking for the meaningful (which includes value and relevance).