Loyalty programs evolve to account for individual preferences
Implications - Recognizing that the Millennial consumer prefers customization wherever possible, many brands are implementing highly personalized loyalty programs. By designing these programs to mimic social networks, or leveraging purchasing data to make targeted suggestions, these brands are tapping into a powerful generational preference to establish long-term relationships.
Workshop Question - If you were to create a loyalty program that allowed for personalization, what would you let your consumers personalize?
Trend Themes
1. Personalized Loyalty Programs - Many brands are implementing highly personalized loyalty programs to tap into a powerful generational preference to establish long-term relationships.
2. Data-driven Loyalty Apps - More loyalty apps are designed to gather and leverage consumer purchasing data to make targeted suggestions in exchange for rewards like free data or personalized offers.
3. Localized Rewards Programs - Both financial and retail-related apps are offering loyalty programs that provide rewards and deals targeted at small businesses and local stores and restaurants.
Industry Implications
1. Hospitality - Hotels and hospitality businesses can offer personalized loyalty programs to celebrate their most loyal guests and improve their overall experience.
2. Retail - Retail businesses can implement data-driven loyalty programs to sell exclusivity and personalize their rewards to fit the desires of their target demographic.
3. Financial - Financial institutions can create apps that offer data-driven loyalty programs in exchange for completing surveys or shopping offers to interact with and build the trust and appreciation of their consumers.
