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Loyalty programmes are a major differentiator for the consumers
The market shift from a product centric to a customer centric ecosystem has been rather swift. Millennials, show-rooming, and evolving technology platforms are disrupting businesses and stalling growth. In an environment where competition is extremely cutthroat, brands are cognisant of the fact that the competitive lead they once experienced due to product differentiation no longer holds value with the proliferation of similar services in the market. Competition in today’s market is severe, which makes securing new customers even more complicated and less profitable. Cost-cutting, hence, becomes the default strategic response. Yet, to build a long-term relationship with their customers, companies have over the years enhanced the overall service experience and established robust loyalty programmes.
Loyalty programmes help satisfy the ever-greater needs of consumers. Credit card companies make for a stellar example to portray how a lucrative loyalty programme can uplift your business model, by honing in on the rewards and perks that make using credit cards a great option for the consumers. Such schemes include cash backs, complimentary goods/services and other benefits allowing loyalty points to be accrued upon each swipe. Loyalty programmes are long-term customer retention strategies which enable you to drive market share, but they need to be easily accessible, pertinent to industry trends, and enticing to today’s digital consumer. The longer the customer enjoys your loyalty programme, the more likely that person will remain loyal to your brand.
Having said that, perks and rewards should not be a substitute for customer service. Guest satisfaction must remain high throughout their shopping experience, otherwise a rewards programme may feel like a payoff and it won’t be enough to earn a constructive review or a revisit.
Consumers today are more apprised, well informed, educated and discerning. Their expectations are ever greater, turning the traditional linguistic string ‘value for money’ into ‘more value for less money’, while still experiencing exclusivity. Exclusivity is often mistaken for expensiveness, especially when it comes to loyalty programmes. The power of exclusivity lies in scarcity.
Lounge access, business class upgrades, free hotel nights or spa treatments make for a comprehensive mastery of customer acquisition. Business travellers are the most valued targets because they book frequently and produce more ancillary revenues, so it’s important for hotels to provide a compelling loyalty value proposition to this customer segment. We at Accor, have recently announced ALLAccor Live Limitless, an all-encompassing platform which enacts as one’s lifestyle companion that integrates rewards, services and experiences throughout. With this, we are bringing value to everyday life whether guests and members live, work or play, elevating our relationship with clients, members and partners from transactional to emotional, and inventing a completely new aspirational way to Live Limitless. This new lifestyle loyalty programme will enable the group - more than ever before - to show it appreciates, understands and cares for its customers, talk with them and reward them, by providing them with a gateway to “ALL of Accor”. Loyalty may be a strong word to describe the relationship many consumers may have with the brands. If a rival offers more accommodating perks, tailored services and steady delivery of a brand promise, many consumers will be inclined to give it a chance – even if their existing brand is already battling to deliver all three.
Loyalty programmes help satisfy the evergreater needs of consumers