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The (Ugly) Truth of the Loyalty Point Program: What Marketers Say vs. What Customers Hear

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(UGLY) TRUTH THE OF THE LOYALTY POINT PROGRAM What Marketers Say VS What Customers Hear


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NICESKY AIR The traditional loyalty program scopes around deferred gratification; slow accumulation of points leading to large redemption events. H WIT


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H NICESKY AIR WIT Nowadays, ICY icy several big brands implement a “points ubiquity” approach; making the program broader and increasing the number of collection points.


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H NICESKY AIR WIT Nowadays, BUT CREATE several big brands implement a “points ubiquity” approach; making the program broader and increasing the number of collection points. REALLY DOES IT OYALTY? TOMER L CUS ICY icy


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1 (UGLY) TRUTH The Points Accumulation


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“ What marketers say: Give customers MORE WAYS to accumulate points icy


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“ What marketers say: Give customers MORE WAYS to accumulate points get to you can So aster. point f mption e rede th icy


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icy ” What customers hear: Give customers more ways to ACCUMULATE points


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icy from buy e to oints. hav on’t et p I d to g you ” What customers hear: Give customers more ways to ACCUMULATE points


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1 (UGLY) TRUTH If most points are earned outside at the partners network, ... ... there’ll no longer be a strong bond between your brand and the customers.


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2 (UGLY) TRUTH THE REWARDS


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“ H NICESKY AIR What marketers say: Earn a lot of points and get BIG rewards icy WIT


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“ H NICESKY AIR What marketers say: Earn a lot of points and get BIG rewards ect icy to coll artners d our p wards. big re m us an redeem Buy fro nts and of poi a lot WIT


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MyCoffee icy ” What customers hear: Earn a lot of points and get BIG rewards


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MyCoffee rewards. them. he big t Forget t er to ge v me fore It’ll take icy ” What customers hear: Earn a lot of points and get BIG rewards


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2 (UGLY) Geared towards the heavy buyers, the long tailed points program causes the less heavy buyers to lose their interest in reaching the redemption points, ... TRUTH ...even though the rewards are big.


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(UGLY) TRUTH The Loyalty


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“ What marketers say: Stay with OUR LOYALTY PROGRAM and you’ll get privileges NICESKY AIR


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“ icy What marketers say: Stay with NICESKY AIR OUR LOYALTY PROGRAM and you’ll get privileges ivileges reat pr fers g twork. am of y progr ners ne r loyalt nd part Ou brand a gh our throu


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” What customers hear: Stay with our loyalty program and you’ll get PRIVILEGES


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ber of a mem ol to be It’s co rogram. yalty p your lo ” What customers hear: Stay with our loyalty program and you’ll get PRIVILEGES


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3 (UGLY) TRUTH Many members of big loyalty programs, especially the Frequent Flyer programs, ... ...keep their membership for the status, not the brand loyalty.


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The “points ubiquity” approach, instead of driving more loyalty towards the brand, turns the loyalty program into merely a points exchange scheme… which doesn’t create true customer loyalty. icy


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Want to see more details in motion ? Watch the full video of Common misconceptions of loyalty program by Regan Yan here Get social with us at: www.digitalalchemy.asia


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