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bearly.bsky.social
•
672 days ago
Do loyalty programs actually generate customer loyalty?
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bearly.bsky.social
•
672 days ago
ICYMI: Comapnies like Starbucks and Chipotle both devalued their rewards points in 2022
A free coffee used to be 250 stars and is now 500
This means customers would have to pay twice the amount of cash to earn the same reward
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bearly.bsky.social
•
672 days ago
In theory they should lose customers right?
Opposite, Chipotle increased it’s loyalty rewards members by 20% in 2022
Why?
Although they decreased monetary benefits (cash back/discounts) they enhanced their rewards by including more a personalized experience
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bearly.bsky.social
•
672 days ago
I go back to my question…
Do loyalty programs actually build customer loyalty?
Loyalty programs started as a system intended to enhance loyalty by giving incentives to valuable customers
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bearly.bsky.social
•
672 days ago
Companies have incentivized people for years through points, discounts, or cash back
But today only 20% of total rewards points get redeemed
Why is this an issue?
Loyalty programs are becoming less effective and more costly to run for companies
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bearly.bsky.social
•
672 days ago
The Solution:
The social media era has show consumers gravitate to more authentic connections and brands
We’ve seen this with the rise of influencer marketing
Loyalty programs shouldn’t focus on rewards but act as the relationship layer between users and the brand
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A free coffee used to be 250 stars and is now 500
This means customers would have to pay twice the amount of cash to earn the same reward
Opposite, Chipotle increased it’s loyalty rewards members by 20% in 2022
Why?
Although they decreased monetary benefits (cash back/discounts) they enhanced their rewards by including more a personalized experience
Do loyalty programs actually build customer loyalty?
Loyalty programs started as a system intended to enhance loyalty by giving incentives to valuable customers
But today only 20% of total rewards points get redeemed
Why is this an issue?
Loyalty programs are becoming less effective and more costly to run for companies
The social media era has show consumers gravitate to more authentic connections and brands
We’ve seen this with the rise of influencer marketing
Loyalty programs shouldn’t focus on rewards but act as the relationship layer between users and the brand