New customers are expensive to acquire – brands want to ensure they stick around. Loyalty programs have been a staple for years to drive additional purchases and revenue. When most brands think of loyalty program examples they picture Starbucks or Ulta Beauty – two of the best. But, there are many ways to drive loyalty that gives points for purchases. The best loyalty programs think about people based on their history, behaviors, and consumer graph info to program an experience that will maximize their engagement with the brand and reward them appropriately.
Loyalty done right increases key retention metrics such as lifetime value (LTV), purchase frequency, and customer satisfaction. But, loyalty programs don’t have to be the old school “create an account to earn points” mentality.
The future of loyalty programs is about segmenting audiences to drive up engagement based on their history, then providing appropriate rewards (points, coupons, gift cards, cash) based on the user and action.
Extole delivers the future of loyalty by allowing brands to track individuals, segmenting people into valuable audiences then targeting them with programs to drive engagement. Programs can drive purchases or other engagement behaviors.
Brands must think about how they are driving loyalty, but how they do it should be a reflection of the current state of consumer purchase, as well as their own business model. Asking consumers to buy, buy, buy will only go so far if you don’t create other loyalty behaviors to deliver value to the consumer and ultimately, back to the business. Extole helps brands increase loyalty by driving effective engagement programs across customer bases.
