Traditionally, loyalty programmes have relied heavily on transactional rewards to incentivise repeat purchases. With increased saturation in the loyalty space and lack of added services and perceived value, consumers tend to ignore (or not check regularly) their points status. This represents a major stumbling block for Generation Z for whom transactional points are no longer a significant draw; instead, they are highly conscious about important causes that support purpose-driven initiatives, and seek to explore how loyalty programmes embrace such initiatives.
This video examines how leading operators, reliant on point-based programs, can innovate to differentiate and add value, fostering stronger brand loyalty.
The airlines industry is one of the mature industries in adopting loyalty programmes as frequent flyer programmes morph into a profit centre. With shifting traveller behaviour, airlines have to transform engagement through different touchpoints to stay relevant, especially to appeal to younger generations. Airlines are working to provide mobile-led, personalised touchpoints that leverage on latest AI technology to increase their relevance with the younger generations and yield better customer loyalty.
Over the past decade, subscription services have reshaped many of our habits and behaviours, providing us convenience and practicality. For instance, when looking for entertainment options, consumers can now access an endless variety of films and series from the comfort of their own sofas.
Mobility brands are looking at novel ways to interact with customers along their journey, as well as enhance consumers’ lifetime value. China’s Electric Vehicle (EV) player NIO is shifting away from a traditional dealership model and embracing the user operations model for client acquisition, building its own strong community of “super fans” to help drive customer loyalty.
With consumers rethinking their spending and retailers actively looking to revitalise their operations to increase their store appeal and sales, gamification elements as part of loyalty programmes stand as a powerful tool to facilitate engagement and in-store experiences, while enhancing the overall shopping journey.