The Australian Loyalty Association recently hosted its third annual Customer Engagement and Loyalty Conference, featuring prominent keynote speakers such as Bernie Brookes, former CEO of Myer; David Galt, CEO of Webjet; Neil Thompson, CEO of Velocity; Dr. Sean Sands from Monash Business School; Sally McNamara from the VRC; and Lewis Pullen from the NRL.
The resounding message echoed by these industry leaders was that effective loyalty programs, which foster customer retention, are those that are (1) thoughtfully designed, (2) gather the right customer data, and (3) leverage this data to provide a personalized customer experience.
Customizing the customer experience plays a pivotal role in optimizing the effectiveness of loyalty programs. It cultivates trust and deeper engagement between the brand and the customer, ultimately leading to increased repeat business. This entails scrutinizing the customer's transaction history and skillfully utilizing the data to offer relevant rewards and tailored communications. For instance, the communication strategy for a new customer differs from that for a loyal, long-term customer with an established relationship. When it comes to rewards, the primary goal is to pleasantly surprise and captivate the customer, catering to their aspirations or delivering exclusive, priceless experiences.
Virtually all presenters emphasized that the digital realm is the future of loyalty programs. Digital Loyalty Reward programs swiftly gather and segment data, enabling timely insights before engaging with the customer. These digital programs also yield significantly higher returns on investment (ROI) compared to traditional card-based systems, thanks to their efficiency and reduced operational costs. Versatility and real-time capabilities are other key advantages of digital loyalty programs.
Mobile smartphones have been identified as the ideal platform for implementing Loyalty Rewards programs, as they closely align with today's consumer preferences. With over 80% of the Australian adult population carrying a smartphone, it offers a rapid and personalized means of delivering loyalty programs. The utilization of beacons for direct in-store communication with customers was consistently highlighted as one of the most promising opportunities for marketers in the coming years. Beacons have the ability to provide tailored in-app notifications based on the customer's transaction history, taking into account time and proximity. This is seen as a powerful way to personalize the customer's loyalty experience in the future.