Insider Tips to Building Next Generation Consumer Loyalty Programs

It costs a business 5-10 times more to acquire a new customer than it does to sell to an existing one, and current customers spend, on average, 67% more than new ones do1. although the loyalty landscape is maturing, consumers are still actively engaged with loyalty programs: 92% of consumers are members of at least 1 loyalty program and they are a member of approximately 6.4 programs2. However, most loyalty program members have lost interest in participating in at least one program. The maritz Institute recognizes that people are driven by 4 motivators3: the drive to acquire, the drive to defend, the drive to bond and the drive to create, and loyalty programs must be designed differently to appeal to these drivers if they are going to differentiate and succeed in creating and sustaining brand loyalty.

Gamification is a game-changer in loyalty program design, because it enables loyalty programs to move beyond just the drive to acquire and triggers all four motivators. next-generation loyalty programs must consider consumers’ attitudes as well as behaviors, and create a mutual value exchange that deepens the connection between the customer and the brand. Loyalty programs must also maximize the efficiency and effectiveness of communications, especially email, which is still the dominant form of communication. The greatest ROI comes when customers’ perceptions of the reward value far exceeds the true cost and they bring in others from their communities by authentically advocating their brand experience.

1. inc. Magazine, august, 2010
2. Maritz Loyalty Study, 2012
3. the Maritz institute 4D Model

This white paper is 2 in a series of 4:

1. What Every Business Leader Needs To Know About True Loyalty
2. Insider Tips to Building Next Generation Consumer Loyalty Programs
3. How to Deliver Bottom-Line Results with Engagement Marketing
4. Critical Factors to Ensure a Positive Customer Experience