The speed of technological development in the modern age and the rise of millennials in the workplace have resulted in many industries having to change the way they’ve traditionally done business. The loyalty space is no different, as Kate Kennedy discovered.
The days of a one-dimensional loyalty programme that sees the customer earning points with a particular airline or hotel and redeeming them for a free flight or bed night are over.
Customers are no longer interested in an apples-for apple programme - they want to exchange strawberries and mangoes and oranges for apples. Thankfully, apple vendors – airlines, hotels and car rental companies – are open to this exchange.
That’s a good thing, because it ’s what is going to keep them relevant and in touch with the needs of their customers. Fortunately for the brands, customers still want to belong to loyalty programmes, but those brands on the receiving end are having to work even harder than ever before to show those customers real value.
It ’s about value and meaning, driven by a younger generation of loyalty customers that see things differently from their older counterparts.
“Both consumers and businesses recognise the value of loyalty programmes,” says Sharon De Leur, Emperors Palace Marketing Manager for the Peermont Hotels, Resorts & Casinos group. “Businesses and brands are strategically teaming up to offer more unique value-adds and lifestyle benefits to enhance the consumer’s perceived value of the loyalty programme.”
The problem is, in most cases, regardless of the sector, there are so many different brands to choose from. So, what’s going to be the deciding factor?
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