Loyalty isn’t just about the perks; it’s about the relationship.
A recent study from Queensland University of Technology in the Journal of Retailing and Consumer Services has found that perks, benefits, freebies, and discounts generally fail to keep customers around. In the age of the connected consumer, offers that are not tailored to individuals become lifeless enticements in a teeming loyalty landscape.
“Some interesting work here from researchers at the Queensland University of Technology suggests that as customers we value being treated as individuals,” Dr. Steve Fletcher, psychologist, said. “Retailers who make a unique emotional connection with each customer and make each one feel special are more likely to have that customer’s loyalty.”
When a close relative or loved one offers a personalized gift or a homemade card, it creates a deeper impact. The same holds true for company loyalty offers and treating them as “gifts.” The more a company can personalize a consumer experience, the more meaningful that impact will be.
These emotional connections operate at micro and macro levels. At the individual level, retailers have the opportunity to build unique interactions with each customer. On a larger scale, they can also build profiles of individual consumer behavior through loyalty card data and transaction history. Companies who can balance and leverage both will see great dividends in their loyalty programs.