23rd February, 2022
Multiple generations, expectations from a specific product category, the loyalty earn and burn cycle, apt recognition for a loyalist, evolving habits of a digital shopper… dealing with these and other aspects make running a loyalty programme a fascinating exercise.
One experience that everyone detests is the last step related to wrapping up a transaction – it should be about the way we want.
It could be about paying via money, miles, buy now pay later or a mix of all it!
This could be for accumulating currency or laying our hands on that reward that we want.
Keeping up with pandemic payment behaviour
Payment specialists assert that everyone, including loyalty programme managers, must take note of payment-related habits that have developed or strengthened in the last two years and are expected to stay from here on.
Look at factors like convenience, choice, and security. Take the case of a shopper – who is willing to pay for a paid loyalty program or a subscription-based plan offered by an airline and is also looking for flexible payment option. Could be a new model or a new payment option, travel merchants have to be ready for them.
Being astute with what and how to deliver:
- Instant gratification: Loylogic refers to the significance of letting members earn or burn loyalty points instantly when paying online. Do consider all the facets of shopping (says the category that connects most with a specific audience) and blend it with the way one intends to pay.
- Making it smooth – Think of checkout-free technology and biometric authentication. Also, as pointed out by iSeatz recently, digital wallets not act as “holistic aggregators of digital assets, including payment cards (credit cards and P2P programs), loyalty program reward points, gift cards, and cryptocurrency”.
- Closing on a transaction the way a loyal shopper wants: Considering the popularity of certain payment options, offerings like buy now pay later (BNPL) have become mainstream. As for crypto, it is going slow, at least as of now. According to FIS’s study, only 5% of the overall respondents said they used crypto as a payment method. With 52% saying they weren’t interested, it was among the least popular options.
- Contactless: Consumers are using contactless payments more frequently and their usage level is expected to rise, according to FIS. What about the security or the spending limit? There might be some concerns on certain aspects, for instance, compared to other nations, the U.S. lagged in terms of positive feedback about contactless payments, but embracing contactless as part of the overall loyalty cycle is going to be imperative. According to FIS, millennials used the broadest range of alternate payment experiences, and were the group most likely to continue using them in the next 12 months.
The profile of a digital shopper has changed in the last couple of years.
FFPs or loyalty initiatives must incorporate payment-related expectations of these shoppers, who encompass various generations and indulge in a variety of shopping categories along with mobility and trip-related needs.
By Ritesh Gupta
Ai Team
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