Why loyalty programs still work
As a marketer, I still find that many marketing promotions are effective on me. I love a great deal, even when I am aware of the hands behind the curtains.
One of my known weaknesses is the loyalty program. Maybe it’s the competitor in me, but I see loyalty programs as a fun game—the objective is to win.
So.
Yes, sign me up for all the reward points.
I’m game.
Why do loyalty programs work so well? I think it has something to do with the fact that loyalty rewards help bring a customer closer to the brand. It creates an emotional connection between the customer and the brand.
Think about it: when an airline upgrades you to first class as a courtesy for your loyalty, it’s a great feeling. When a hotel upgrades your suite, you’re ecstatic. You truly feel like a VIP, and we are more likely to remember people who make us feel great. By that logic, it’s also possible that we feel warm towards the brands that make us feel special.
Loyalty programs are still out there, working their magic by building emotional connection. If you can activate this level of connection with your brand, you’ll probably win me over.