Leave individual loyalty programs where they are: in the past. Get to know the perfect alternative to this model, focused in increasing brand performance and client satisfacion.
According to a 2017 study conducted by Colloquy, 53% of respondents said they had given up such programs because of the lack of rewards arousing their interest. If this does not show a trend note that, although the number of people in individual loyalty programs has risen from 3.3 to 3.8 billions between 2014 and 2016, the growth rate has dropped considerably from 26% to 15%.
Is there a credible alternative to this type of program? Yes, multipartner loyalty programs. These are low-cost platforms in which customers are rewarded with points in each purchase they make in the different affiliated brands. After this, they can start redeeming the rewards they choose.
Do you know the advantages provided by this model?
1. Higher value of consumption
Having several partners from different sectors makes point accumulation easier and faster, influencing members to increase the number of purchases they make and the amount they spend. These two factors also make it possible to extend the available inventory and the accumulation of points for a longer period without expiring. This is the perfect solution to the inactivity of more than half of the clients integrated in individual loyalty programs. Even though brands are rewarding customers with better conditions by doing this, they end up seeing their profits grow due to the diversity and quality of rewards available as well as the increasing motivation to buy more regularly.
2. Higher efficiency at lower cost
Through the online platform it is possible to build a detailed database on client’s profiles and preferences. This will allow you to optimize your marketing actions and communications. Moreover, the fact that costs are divided by partners significantly lowers the costs associated while increasing return over the investment.
3. Competitive advantage
Since this kind of platform offers numerous types of rewards, customers will appreciate the differentiated and exclusive offers. Another advantage is the lack of competitiveness between partners because they all belong to different market sectors. This allows them to benefit from each other’s success. Additionally, the biggest and most recognized brands contribute to increase the visibility of those which are not that consolidated.
4. Service constantly being improved
The fact that there is an intermediary between the brand and its consumers, who continuously monitors the program in real time to improve it, saves a lot of work, time and costs to partners. The use of customer data, obtained through consumption patterns and actions in the platform, also allows a better knowledge on customers and its necessities, desires and preferences.
Convinced? Not yet?
Look closely at this data collected by SLI, a worldwide reference in the development of loyalty programs.
According to the US company, partnership platforms such as Travel Club in Spain or AIR MILES in Canada have reached a 70% active customer base. Nectar, in the United Kingdom, has brought up this rate to 68%. For those more skeptical, it should be enough to say partner’s sales in these programs grew between 10% and 20%.
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