CUSTOMER ACQUISITION TAKES A BACK SEAT TO RETENTION

With increased competition, loyalty progammes need to go beyond the ‘one-size-fits-all’ approach to keep up

People want to feel special, valued and recognised. It’s the typical ‘surprise and delight’ element of a good customer experience NATHALIE SCHOOLING

CEO of nlightencx

Loyalty programmes do create brand loyalty, with numerous studies showing the simpler the programme is to understand and to receive discounts and cashback, the better. When you are at the point of paying and the cashier tells you how much in rand you have in to spend, that’s the “sweet spot”.

Customer experience specialist, Nathalie Schooling, CEO of nlightencx, says that over the past few post-pandemic years, customer acquisition has taken a back seat to customer retention or consumer loyalty.

“This is largely to do with the increased competition that brands face. It’s becoming harder for customers to remain loyal to one brand because they are both budget-conscious and spoilt for choice,” says Schooling. “So, companies really have to work hard to earn and keep their attention. This is where loyalty programmes can work their magic.”

However, loyalty programmes are not a silver bullet. In the same way that customer expectations keep changing, loyalty programmes need to keep up, and the successful ones are the programmes that are going beyond the “one-size-fitsall” approach, she says.

“The shift to more experience-based rewards in recent years has been driven by research showing that customers will choose a good experience over price, which means loyalty programmes that offer benefits over and above points or monetary rewards have a better chance of retaining customers in the long term.”

The free 10th item programme, says Schooling, is a short-lived model which doesn’t drive the kind of brand loyalty that will reach people on a deeper, more authentic level.

“People want to feel special, valued and recognised. It’s the typical ‘surprise and delight’ element of a good customer experience. If a programme can offer their customer exclusive rewards for their loyalty, such as the first offer on a new product or service, or access to additional services that add more value to their lives, it’s a win.”

The catch for brands is that they have to put in the hard work, she says. They have to get to know their customers and understand their wants and needs so that they can tailor and personalise their loyalty programmes to speak to their hearts and their minds.