Hope you had a wonderful weekend. The past month has been crazy & I had the chance to sit down & just re-evaluate all that had happened over the weekend. Now back to the grind, all set to start the new month with a clean slate.
Leaving you with one of my favorite quotes to help you kickstart the new week,
‘Try not to become a person of success, but rather try to become a person of value.’
Now with that thought, here's what we'll be talking about in today:
🥰Want More Loyal Customers? Offer a Community, Not Rewards
The irony of most of today’s customer loyalty programs is that they aren’t about loyalty at all. They have more to do with an economic transaction than with true affinity for a brand. For example: some companies allow you to earn points for following them or writing a product review. This sort of bribery usually attracts the least loyal and least valuable audience — people mostly interested in claiming the reward not invested in the brand.
True loyalty is emotional and irrational and leads to customers feeling like they’re part of an exclusive membership group which then leads them to become loyal subscribers or consumer network participants. Consider, for example, sneakerheads waiting in line all night to score a coveted item. They don’t do it to make money on resale; they do it for the in-crowd bragging rights.
In the modern aspiration economy, consumers are fans, influencers, hobbyists, environmentalists, and collectors. The best membership strategies, which trade on social and cultural capital, are designed for them.
The keywords are not necessarily prestige and exclusivity but identity and belonging. People take pleasure in the intimacy of consuming together and interacting with a like-minded community.
Consumers prefer small repeated gains and incremental rewards over big infrequent ones. So membership programs need to offer a steady stream of touchpoints. That's exactly how we have built our next-gen loyalty program keeping the same thought process in mind.
Once the effects of the pandemic slowly subside and restrictions continue to ease, many are questioning how businesses will adapt. Will they revert back to old ways of operating? Which trends will remain, if any?
1. Online purchasing is here to stay: The in-store experience is still enjoyed by many, but the absence of it in the past year has allowed consumers to see how simple and enjoyable the process of purchasing products online can be. As a result, it’s likely that the industry will still see a large share of purchases remaining online.
2. Personalized beauty: 80% of consumers are more likely to purchase a product if a brand offers personalisation, and 90% stating they find personalisation appealing.
3. Brand authenticity: Today, consumers look for authentic brands with a strong sense of purpose. As a result, many beauty businesses have developed a far better understanding of the importance of defining what they stand for.
Examples: Many forward-thinking brands have used the shift towards online sales as an opportunity to step up their digital offering. Aveda created a series of videos on Instagram to provide advice on hair styling and hair care, resulting in views increasing by over 200% since launch. Another example is MAC’s virtual try on tool, which allows consumers to try on eyeshadow and lipstick shades. This saw a 300% increase in consumer use since lockdown began.
The 1st episode of Yours Digitally Season 2 is here🥳️
In this episode, I was joined by Dilpreet Singh, Head- CRM & Loyalty, The Oberoi Group.
This podcast is a value-bomb for anyone who wants to learn more about the loyalty space. Dilpreet talks about his learnings working across different kinds of loyalty across various industries.
Tune in to the podcast to get a deeper insight into the world of loyalty, from the basics of why you need a loyalty program to scaling & running a successful one.
1. Do brands stand to gain from this year’s Olympics?
2. Nestle and Starbucks extend partnership to ready-to-drink coffee
3. Byju's has acquired Great Learning in a transaction valued at USD 600 million
That's all that I had for today. Take care & stay safe :")
See you next time, Pranav