Comment vous assurez-vous que les récompenses de votre programme de fidélité sont pertinentes et précieuses pour votre public cible?

Generation Z looks for immediate rewards. People prefer recognition and rewards which can be redeemed with an intuitive user interface. It needs sustainable systematic yet efficient planning and execution

The 3 pillars of knowing your customer are conversations, analytics and strategy. First, you have to talk to your customers. Hire user research specialists to help if feeling nervous or unqualified. However, people are often wrong in understanding their past behaviors and are terrible at predicting their future behaviors. So, use analytics and set up experiments as you roll out your loyalty program. Guess how they will react based on research and then check it. The third pillar is strategy, which is understanding where the world is headed and how it will affect your customers. This is offering the car instead of faster horses. Winning Loyalty programs start with the customers. Unsuccessful start with metrics and tech.

To ensure that your loyalty program rewards are relevant and valuable to your target audience, start by understanding their preferences, behaviors, and pain points through data analysis and customer feedback. Tailor rewards to align with their needs, offering personalized incentives that resonate with different segments of your audience. Regularly review and refresh the reward options to keep them engaging and appealing. By continuously monitoring customer satisfaction and reward redemption rates, you can fine-tune the program to maintain its value and relevance, fostering deeper customer loyalty and sustained engagement.

Two points to add: "Who are your most loyal customers": Your goals may include increasing the future value of today's less-loyal customers, or engaging a new customer segment. Consider them in your thinking. "What are their demographics...": Don't forget time and place. What are customers' needs in the future? Do their preferences vary by where they are in their journeys with you? If you looked back in time at customers who are your most valuable today, what did they look like in the past? What would have been valuable to them, then? Ideally you'll be able to identify rewards and benefits that will stay relevant for some time, to avoid being forced into (possibly undesirable) repeated work and customer-facing changes.

Loyalty Programs Define Their Exclusivity To gain customers, brands must be willing to stop trying to be relevant to everyone. Likewise, Loyalty Programs can't be everything to all people. The key is to connect with a particular group that shares common goals. Customer loyalty happens when your efforts match the customers' goals. Go beyond the extrinsic motivations of the customers. To truly connect with them, brands need to uncover the intrinsic needs of the customers and try to fulfil them.

The loyalty program proposition is made up of the Six Currencies of Collection members care about: Money (financial benefits - “show me the money”) is the number one currency members care about. Choice (“let me choose my rewards”) Memory (experiential benefits - “Add moments of magic to my life”) Time (functional benefits – “Save me time. Make life easy for me”) Me (Personal benefits – “Show me you know me. Make me feel special”) Us (Social benefits – “Connect me with community and causes”) Consider a blend of benefits relevant to your customer base

There are 3 building blocks that one needs to hold onto and they must talk to each other --> "Recognition" "Relevance" and "Rewards" All 3 elements answer each other and can be the guiding principle, for rewards they have to be relevant and best when they recognize the need/behavior/achievement/member. Rewards can be published and also come as a surprise and delight, personalized to the nth level of detail. Rewards have to be connected to earn and burn velocity as well as lifecycle stage. It's more about how and when you reward rather than what you reward in many cases, building the emotional bond with the brand.

The power of choice as it relates to reward content for a loyalty program, allows you to do a few things for your customers. The first thing is, you’re making them feel involved by giving them the power to choose the rewards that they want. These choices, then give you the opportunity to better segment your loyalty members as they align themselves to specific experiences, brands and rewards. This strategy allows you to create audiences and have more impactful conversations that lead to outcomes within your loyalty program.

Proporciona opciones diversas que se alineen con los intereses y preferencias de tu audiencia. Permite a los participantes elegir entre descuentos, productos exclusivos o experiencias personalizadas. Realiza encuestas para entender mejor sus deseos y ajusta las opciones de recompensa en consecuencia. Mantén actualizado el catálogo de recompensas para reflejar las tendencias y necesidades cambiantes. La flexibilidad y la elección brindan un valor significativo, asegurando que el programa sea atractivo y relevante para tu público objetivo.

From a loyalty perspective, 'Know Your Customer' entails deeply understanding their preferences, behaviors, and needs. It enables tailored rewards, personalized experiences, and targeted communication strategies. By analyzing customer data, businesses gain insights into purchasing patterns, engagement levels, and sentiment, allowing for strategic decision-making and effective loyalty program management. Leveraging this knowledge fosters stronger relationships, higher retention rates, and increased customer lifetime value. Ultimately, it cultivates a loyal customer base that feels valued and appreciated, driving sustainable growth and competitive advantage in the market

For instance if you are a sportswear brand you can reward members for doing sport activities, like running or going for a hike. Or as Rip Curl, the global surfwear brand, did it, they created a membership program that rewards their members for what they love doing, surfing. By sharing their passion for surfing and the beach lifestyle they are on the way to building the largest and most engaged surfing community in the world.

In my experience, creating a reward network that resonates with your customers is what matters most. Another thing to keep in mind is that you want the rewards to act as incentives that drive behaviors you want from your customers…. If you can get both of these aligned, you will have a great reward strategy!

When considering needs for ourselves and our families, we all have values that are important to us. We can all think of brands that have mistakenly undermined consumer trust with strategies that put their brand values into discord with our customers' values. An example might be the high profile organic and ethical food retailer in the centre of London that offered to pay customers' parking bills when shopping at their store. Talking to their shoppers it was discovered that they would prefer a reward that discouraged bringing polluting cars into the city centre. This opinion could have been ascerained prior to the promotion and damage to store brand values avoided.

This is what will provide authenticity to not just your loyalty proposition, but your brand, too. Authoring a valid reason why to buy from your brand because it aligns to their values too. The best examples for me are programs like Harley Davidson's H.O.G, Kathmandu's Out There Rewards, MECCA's Beauty Loop, Starbucks Rewards and Prime.

You might offer to an audience that expect immediate rewards, but you have to accept the fact that your rewords will not be immediate. Consistency and audit are the keys. Try a little bit and check how it works. Try a little bit more and check...

One of the best types of personalization is based on ease of use. Instead of using AI to predict someone's interests, it's way more effective to incentivize new members to complete their profile and give them a reward afterwards. And when it comes to personalized promotions, I've yet to see anything more effective than a reminder to spend unused points that appears once a member lands on the website. At best, 50-60% of your members will open your personalized emails. Timing might not be right or whatever, an email is never sent when it fits the customer. They will however visit your website when THEY choose to do so, and it's often not a coincidence. Remind them when THEY come to you.

Your rewards budget must cover the cost of the reward, and delivering it to the customer. Spending more on the latter, or to manage a large number of reward options, can take away from the tangible rewards value you can provide. Bespoke suits cost more than off-the-rack. There is no universal rule to apply here. The right balance will depend on your offering, costs of delivery, and customers' perceived value of customisation. Keep in mind that personalising the communication of rewards, rather than the rewards themselves, may help manage the costs-customisation trade-off.

AI is definitely the way forward to canvass consumer opinions in volumes and to a depth never before imagined. There needs to be a carefully defined strategy to utilise the learnings from this to strengthen our reward strategies.

Keep it simple. Keep it simple. Keep it simple. Gain data. Crawl, walk and then Run. Place yourself as a guest/customer and think what will make you build the emotional bond and which functional element is going to help you reach there. Small moments and gestures make the biggest difference. AI will definitely help and make things faster.

Para asegurar que las recompensas del programa sean relevantes y valiosas, la personalización es clave. Utiliza datos del comportamiento de compra y preferencias para ofrecer recompensas adaptadas a cada cliente. Implementa sistemas de recomendación personalizados basados en historiales de transacciones. Ofrece opciones de redención flexibles y permite a los participantes elegir entre descuentos, productos exclusivos o experiencias personalizadas. Realiza encuestas para entender sus gustos y ajusta las recompensas en consecuencia. La personalización garantiza que cada recompensa sea percibida como única y significativa, fortaleciendo la conexión emocional y la lealtad del cliente.

Redemption rates and point balances are good indicators of program engagement and reward relevance. If point balances are low and redemption is high, this shows good engagement and relevance. However, if point balances are high and redemptions are low, perhaps members are not interested in redemption options or the redemption process is cumbersome. If both point balances and redemptions are low, the members are not earning enough to be able to redeem. In this case, redemption options are of lower concern versus driving spend and balances to enable such redemptions.

As well as having desirable rewards, communication is key. The rewards need to be easily accessible by removing friction. All too often I see programs fail when the program ignores the redemption experience or makes it too hard for members. A successful program is a high engagement program where members earn and redeem in a virtuous cycle. So listening to consumers and designing experiences that make it easy are critical here.

Firstly, loyalty programs should be designed to be easily understood by your audience. Too many layers, complications and having unreachable rewards thresholds will create a negative association. It is always great to add FAQs to your main site - as there will be a cohort of members who will self-service. You should spend time training your reps. Whether instore, online, call centre etc. They should live the program and be able to articulate the details. If your team doesn't know how to talk to the program, why should you expect customers to just understand.

Having a proper lifecycle implementation and interventions is one of the basic elements to increase the awareness and utilization of program benefits. Once a customer is onboarded, what do we need to tell him about the program, what happens after the first purchase, and next or the time in between... Leading all the way to them becoming an advocate or churn or in between. Building an automated lifecycle management + building community will increase the awareness and adoption/engagement. Also, having a listening post, acting on feedback and relaying the changes based on feedback are critical to let the customers know that they are heard and empowered.

Many brands shy away from communicating and encouraging redemptions. Redemptions are a win-win for customers and brands: - They drive post-redemption increase in spend by 20-25% - They drive positive brand perception and experiences - They provide a natural communication point to encourage customers to spend again and rebuild their point balance. I typically recommend targeted redemption campaigns, aimed at margin-positive members. This will protect the bottom line of the program.

If you get customer's feedback, use it to make your program better. Don't get offended and someone doesn't like it. Make it possible for your team to apply changes and improve your program if they find a bug.

Since rewards are for the members, brands need to know and understand what kind of rewards will be relevant for the members and you are not imposing something on them with forced choice. Some factors to be considered while finalizing the rewards for your loyalty programs could be around below areas. - Majority of members have desire for tangible rewards like savings, value adds or exclusive access to something. - Instant gratification is something which will never die. Make a balance between instant and delayed gratification as the latter ensures repeat engagement. - Don't make it predictable and have an element of surprise and delight for your members. - FOMO still works so have some exclusive limited period aspirational rewards.

Don't forget your P&L. You need a rewards offering that keeps your programme profitable. You are looking for rewards with high perceived (motivational) value, low incremental cost, and low cost of delivery. Or that make up for their shortcomings in another way. Do some rewards drive an upsell when they're redeemed, or have a flywheel effect? Can your rewards budget make you an attractive partner for another brand, in a way that benefits your business? 'Rewards' is a broad term - think broadly about them. And they're usually the biggest cost line on your loyalty P&L. If you can find cost-offsets for them, and be clever in how they drive revenue for you, you'll have a much more profitable programme.

Measure the engagement on each of your rewards (claim rate, redemption rate) against industry benchmarks and vs other rewards in your program. Compare the Cost per Engagement (CPE) and consider if there are derivative brand assets (if any) for specific rewards. Counter your transactional benefits with exclusive soft benefits that tap into your customers emotions.

Your Loyalty Program rewards must resonate with your audience, so get to know them inside out! Know their preferences, needs, and behaviors through surveys, feedback, and purchase history. Make these truly unique, fun, "light". Tailor your rewards, offering not just discounts, but unique experiences, services or products that they genuinely value. Keep the program dynamic; regularly update rewards based on evolving trends and feedback. Be transparent about how to earn and redeem rewards. Celebrate milestones, making every interaction feel personal and appreciated. You're not just rewarding transactions; you're building relationships. Surprise them, inspire them, and they'll inspire you back with their loyalty!

The best way to find out if rewards are relevant and valuable to your customers is to ask them! Make them your important stakeholders. Co-create rewards with them. Also rewards represent your program value back to the customers for being a program member. Think through on the below: Can your program can afford the cost? Is it easy to achieve those rewards? Does program need a partner support to increase the value of rewards through partner funding?