Being loyal is defined as being “unswerving in allegiance: such as (a) faithful in allegiance to one's lawful sovereign or government (b) faithful to a private person to whom faithfulness is due (c) faithful to a cause, ideal, custom, institution, or product.”. Loyalty programs alone, do not make a customer …
Brands launch loyalty programs in an effort to increase market share and try to: Increase customer retention Increase acquisition Get more referrals Get more sales Build brand advocacy Loyalty programs offer benefits to customers in the form of: Discounts Free shipping Free products Early access to sales Early access to …
Loyalty programs are useful only to the extent they create two things: Consumer behaviours Defensive moats which are strengthened by those consumer behaviours What defensive moats might a business want to shore up? Hamilton Helmer identifies seven categories (or “7 Powers”) under which all others fall: Economies of Scale Counter …
The different types of loyalty programs try to incentivize different types of brand-valuable behaviour. Points-based loyalty programs More frequent purchases (usually not specific / more valuable purchases) Leaving a positive review Engaging on social media Referring a friend who went on to make a purchase Signing up for an account, …
What impact/return a brand expects to make, depends on its stage/mode. Brands tend to operate similar kinds of loyalty programs across different sizes. The point of difference is how much they’re able to do within those programs. Most of the loyalty programs we see at big companies (Starbucks, Amazon Prime, …
So what value are these efforts delivering to brands today? What type of program works and what do consumers remember in the end?
Back in Nov, tickets went on sale for Taylor Swift's new tour, and almost nobody who wanted one got one. Ticketmaster, the biggest ticket seller in the world, couldn't handle the traffic. Asked to respond to complaints on CNBC, shareholder Greg Maffei called it "a function of Taylor Swift" rather …