27th July, 2021
A study has indicated that brands need to consider the notion of “customership” as a key requirement in the post-pandemic era and must aim to be related as a “Loyalty Brand”.
In its The Loyalty Report 2021, Bond has asserted that it is imperative for brands to show loyalty to the customer, rather than the legacy paradigm of brands expecting customers to show loyalty to them first, this is what customership essentially refers to.
This year’s report features an assessment of 450 loyalty programs by more than 25,000 North American consumers across a range of key sectors.
- 85% of marketers and program operators agree that the pandemic has accelerated their digital strategy.
- Brands must look into relevance of tier structures, as access to enhanced tiered experiences (indicated by three out of five program members) can result in more business from members. Members of enhanced tiers feel a sense of reciprocity.
- Consumes have evolved their redemption goals and expect to be rewarded quickly.
- Younger customers and affluent consumers: Loyalty mechanics are more influential on member attitudes and behaviors as household income increases, and are most meaningful to Millennials and Generation X consumers.
Delete “Frequent Flyer Program”, here’s why
In case of airlines, loyalty programs have been a lifeline asset for them to ride out the pandemic. The team at ibs Software has asserted that now is the time to ride that momentum and step up new member acquisition. The more members a loyalty program has, the more interesting it is for third-party partnerships to tap into new customer bases.
ibs has recommended five steps:
- Delete “Frequent Flyer Program” (#FFP) to eradicate the notion that an airline tends to care only about its frequent flyers.
- Create benefits for all members: Most airlines don’t promote a discernable benefit for base-level membership besides the ability to earn miles.
- Craft enrollment messaging carefully
- Simplify the enrollment form
- Prioritize enrollment in the marketing strategy
A vital aspect of drifting from the concept of a frequent flyer program to a customer engagement program requires organizational change. As the team states, it’s also the step “that will truly open up the full revenue-generation potential of an airline’s loyalty program”.
By Ritesh Gupta
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