Should I Be Taking “Experience” into Account When Creating My Loyalty Program?
Did you know that 95% of purchasing decisions are made in the human subconscious mind? We spend a lot of time comparing, contrasting, and reading reviews. We often only engage with brands or companies we feel emotionally connected to, aka loyalty. Speaking of emotions, what makes people feel satisfied or rewarded? There are many things, but that feeling of satisfaction comes from the release of the hormone dopamine, which also drives positive and long-lasting relationships, in this case, with customers and members.
There are many ways to add value to your loyalty program, and when creating one, it is essential to ask yourself what you want out of it. Loyalty programs have six cornerstones, beginning with transactional and ending with emotional.
- Money: Save money by providing discounts
- Memory: Provide positive moments and memories (experiences)
- Time: Make life easier
- Personalized: You are an important customer or member
- Choice of rewards: Ability to choose a reward or benefit
- Community: Connection to a similar-minded community and cause
These six cornerstones are crucial for a successful loyalty program and should always be considered the building blocks of your program. However, let’s revisit that emotional and long-term relationship connection and why experience rewards are so powerful. Experiential rewards, unlike other types, add a unique and memorable value. They often offer something the average person wouldn’t justify for themselves, such as tickets to a private shopping event, early access to concert tickets, or points for a luxury vacation. When these rewards are unique, personalized, and memorable, the emotional connection made will create a lifetime of genuine loyalty.
The takeaway is that loyalty programs are worth their weight in gold when considering the value of reward vs. the cost of reward. You can create a loyalty program with maximum value at minimal cost by combining the base cornerstones with a unique experience, making your loyalty program feel more valuable. This cost-effective approach ensures that you get the most out of your loyalty program. If you are looking for an answer to build your loyalty program, contact YCS Group. We have the cornerstones and experiences to create long-lasting relationships with your most valuable members and customers.
