Loyalty programs have been associated with digital marketing strategies. What is the relationship between loyalty programs and digital marketing? Digital marketing is defined as the application of marketing strategies through digital media and at the same time, it is done using digital technologies in order to reach its target audience.
Digital marketing is increasingly using new channels to reach their consumers and that makes companies learn how to enhance customer loyalty and at the same time, thereby getting more growth. Below we share interesting data extracted from the study conducted by McKinsey Company on loyalty programs.
User navigation is important
Today, consumers have changed their shopping behavior and do not stay in a single channel, but use several and do it through different devices. Although it may seem very obvious, there are still loyalty programs that are static and offer obsolete rewards that follow patterns of the past.
Generate dynamic rewards programs
Rewards programs have to adapt to the new consumer and their new consumption habits, so companies must develop a flexible strategy that allows them to adapt to any change.
The following graphs are taken from the McKinsey Company study and show that rewards programs which propose offers tailored to consumer needs and add value to them are more likely to be successful.
Aggressive campaigns are not the solution
Encouraging people to spend money is no longer useful, but there are still programs that offer massive discounts and many times for consumers and the brands themselves it is no longer enough.
Why? These are aggressive strategies that no longer work. The most important thing is no longer to just get the user’s transaction, but to offer additional experiences and services that create new points of contact with the consumer and bring them value.
As can be seen in the graph above, consumers no longer want massive offers, but value more that their good behavior is rewarded. Apart from McKinsey also said to be successful when launching such a program, you must take into account:
- Understand consumer needs.
- Have brand synergy.
- Offer product diversity.
- Take into account the user experience.
- Data and technology.
This last one is quite important, because if we take into account that the digital world is in continuous change, brands must be committed to be aware of new regulations to connect technologies and share data.
The cashback programs created with Triple’s technology can be fully integrated into banking applications without the need for technical integration on the part of the brands, which means that when a brand wants to launch its own program, it only needs to take into account:
- How much cashback it wants to offer to its current and future customers.
- Analyze the results and adapt the product according to the consumer’s needs.
More than 50 brands have already made use of our technology to incorporate a new customer acquisition strategy that puts the consumer’s needs first, leaving aside the old loyalty programs that, as we have seen above, provide neither value nor good results.
If you would like to incorporate a cashback program into your strategy, please contact us for more information.
