3 Modern Loyalty Program Upgrades to Deploy in 2022

“The pandemic has globally changed how businesses engage with their consumers.”

You might have heard this a lot and must be thinking, “Oh, come on, another article starts with this line!” Agreed, the line has become a cliché; however, the great part about clichés is that they are mostly true. This means that yes, the pandemic has disrupted the entire human existence on this planet. Everything has changed—from how we breathe to how we live. Hence, it’s evident that even the loyalty rewards program industry has changed.

People nowadays are bombarded with a loyalty program almost every time they interact with any brand, sometimes even when they are not interacting. This means people have become more immune to regular loyalty strategies. Big companies and industry giants have already changed their loyalty strategies because they can spot such shifts way before a mid-sized or a small business can. It’s because they have the kind of investment and infrastructure to study and keep an eye on the trends and how consumer behavior is changing. However, this time, even those giants were taken aback by the effects of the pandemic.

However, even after the darkest of nights, the sun always rises. Another cliché line? But again, it’s true! And the research from MarketsAndMarkets is proof of that. The study says that the global loyalty rewards program management market size is set to grow at a compound annual growth rate (CAGR) of 16.3% between 2021 and 2026, i.e., from 8.6 billion USD to 18.2 billion USD. The growing necessity of getting a competitive edge over one another among businesses, the implementation of omnichannel & multichannel technologies, and the change in consumer needs will be the primary drivers of the expected growth.

It is apparent that there is a significant shift in the process, and competing during this change is not an easy job. It would be best to try to employ innovative and advanced loyalty programs that generate results ahead of time. Business giants have already started doing it, and now it’s your turn!

You might say, “But large enterprises have the budget to deploy futuristic technologies.”

“83% of the brands are increasing their investment in loyalty by 5% or more this year.” (Forrester Wave)

Yes, affordability is a big issue, but don’t worry, Loyal-n-Save has sorted that part out for you! But first, let’s understand the 3 modern loyalty program upgrades to deploy in 2022.

1. Omnichannel Loyalty – Undoubtedly the First Thing You’d Want to Deploy

Omnichannel loyalty, to put it simply, means that you provide services to your consumers wherever and whenever they want. If they’re going to redeem their reward tokens/points/discount coupons earned through offline purchases on your online platform, let them do that. Furthermore, omnichannel loyalty rewards programs also includes engaging with consumers through all channels, be it social media, loyalty apps, emails, etc.

Going omnichannel brings a lot of advantages; in fact, your business’s brand value gets a step up just by going omnichannel. Moreover, having an omnichannel loyalty program is just the kind of insurance you want against the pandemic. During the pandemic, the businesses that went multichannel and omnichannel were the ones who came out of the pandemic unaffected. Some have even increased their sales during the pandemic because they had their consumers retained and engaged with them through omnichannel loyalty. Smokers Choice, the 7th largest tobacco outlet in the United States, is an excellent example of how implementing an omnichannel loyalty rewards program can boost sales, even during a pandemic. Smokers Choice is enjoying affordable omnichannel loyalty solutions from Loyal-n-Save.

2. Paid Loyalty

Paid loyalty is everywhere—Amazon Prime, Nike Membership, and many more companies. You might as well be a part of a paid loyalty program. Paid loyalty campaigns are where consumers pay to be a part of your program in return for exclusive offers, personalized discounts, and special treatment.

Though the change from free loyalty programs to paid loyalty programs was already in the process even before the pandemic, the pandemic has, in a way, also proved the importance of paid loyalty programs. Moreover, as per McKinsey’s report, “Members of paid loyalty programs are 60 percent more likely to spend more on the brand after subscribing, while free loyalty programs only increase that likelihood by 30 percent.”

It’s all in human behavior; if a person pays for a service, they will try to get the most out of it. People enrolling for paid loyalty tend to use the most exclusive discount coupons, early access, and many other benefits, which in turn increases a brand’s sales. Employing paid loyalty for the consumers who are most likely to opt for it can help you understand consumer behavior and create a loyal elite group of consumers who you know will be with you for a more extended period.

3. Email Personalization, Loyalty Tracking, and Personalized Exclusive Offers

Many retailers are looking to upgrade their loyalty programs in all of these three aspects. RSI reports, “Retailers are looking to upgrade their email personalization, how they track loyalty and exclusive personalized offers.”

You might be thinking, “Why these three aspects?” These three are the critical tools through which you can offer an ecosystem to consumers where they not only feel rewarded for their loyalty, but also are continuously incentivized and motivated to shop regularly and refer your products to their colleagues, friends, and family. This helps sustain a continuous line of valuable zero and first-party data that can be used by the businesses to retarget, build beneficial relationships, increase sales, and create personalized offers.

Wrapping Up

2022 is increasingly becoming the most competitive year for most businesses, as far as customer retention, engagement, and acquisition are concerned, because everyone is trying to recover from COVID-19 setback. Most companies are trying to bring their A-game to the table with modern customer engagement loyalty programs to ensure notable business growth. You can only survive and grow in this cut-throat competition if you continuously upgrade the technologies and strategies you use. Affordability is a big issue, but there are players in the market that help you create a perfect balance between advanced loyalty solutions and cost-effectiveness—Loyal-n-Save is one of the best examples among such loyalty rewards program providers.