Ash Ledran
Strategist
2 Dec 2024
These days, a typical shopping experience feels like juggling a wallet full of loyalty cards. Rewards, cashback, early access to gigs, discounts here, and free pizza there – each promises something enticing. But here’s a question I keep pondering: is it true loyalty anymore, or just a matter of not missing out?
Let’s take a closer look at how loyalty is evolving – and whether it’s still what it claims to be.
What’s loyalty without free will?
Often, loyalty feels less like a choice and more like a requirement. Opting out of a loyalty scheme can mean suffering at checkout. It’s like arriving at a party expecting to mingle and have fun, only to discover there’s an exclusive VIP lounge you didn’t know about. Everyone inside is sipping cocktails, and you’re stuck by the snack table with a handful of dry pretzels. All because you didn’t sign up for the ‘cool club’ in advance.
This dynamic reveals the double-edged sword of modern loyalty schemes. In many cases, loyalty schemes are as much about gathering insights into customer preferences as they are about offering savings. And while there’s value in that for both sides, it’s important to strike the right balance. Customers should feel like they’re genuinely benefiting from the exchange, not just trading data for a slightly lower price tag.
Anyone can click a few buttons…
For programs to mean anything, they have to reward actual loyalty. It’s about recognising customers who genuinely stick with a brand over those just popping in for a quick deal.
Picture this: you visit the same coffee shop every day for your flat white and croissant. As a regular, you occasionally get a free coffee. Then you realise that the person behind you – a first-timer – just got an instant freebie for joining the loyalty scheme. Fair? Not exactly. Loyalty should go beyond rewarding mere membership and instead encourage consistent engagement.
Price-saving is undoubtedly appealing during a cost-of-living crisis. But does leaning on it so heavily create loyalty, or just price sensitivity? As marketers, it’s crucial to ask if we’ve lost sight of what loyalty truly means. Is it a genuine preference for a brand, or just a reaction to the best deal of the day? Often, anything beyond price feels like an afterthought.
Sell the love of the journey with gamification
The most successful loyalty programs don’t just focus on price – they make the journey itself the reward. Enter gamification. Programs incorporating gamified elements – even subtly – engage customers in ways that go beyond discounts. Earning points, completing challenges (“Buy three coffees this week”), or unlocking milestones (“Spend £50 to double your points”) transforms loyalty into an experience.
Rewards tied to effort feel sweeter. That free coffee or VIP status isn’t just a perk – it’s a trophy, creating an emotional connection with the customer. Loyalty programs that gamify the experience keep customers coming back not just for the rewards, but for the satisfaction of achieving them.
How can CRM bring loyalty to life?
Loyalty and CRM intersect in ways that enhance the customer relationship. Loyalty schemes provide brands with something invaluable: owned attention. Picture a customer in-store, their app pinging with a message: “Save £5 on your next shop.” That real-time engagement is peak loyalty – your brand is front and centre.
Traditional CRM often relies on pre-empting or reacting to customer behaviour. Loyalty bridges this gap by allowing brands to proactively prompt desired actions. By tracking and grouping customer behaviour, brands can create personalised offers that feel timely, relevant, and rewarding.
The key? Genuine rewards. Empty perks may yield short-term results, but earned rewards create lasting connections. Think of it like a Christmas list: as a kid, you’d scribble down your wishes, do your chores, and behave. When you finally unwrapped that gift, it felt amazing because you earned it. The same principle applies to loyalty.
Where is loyalty heading in 2025?
This coming year, the brands that nail their loyalty will focus on:
Genuine Value: Building programs that make customers feel truly valued and appreciated.
Surprise and Delight: Crafting unexpected rewards that leave lasting emotional impressions.
Earned Loyalty: Designing systems where rewards are tied to effort, amplifying the sense of achievement and connection.
At ActionRocket, we don’t just follow trends – we set the standard. With cutting-edge CRM strategies, we’re driving the shift from transactional to transformational. Get in touch below to find out how we can make your strategy resonate – not just with wallets, but with hearts.