Today’s consumers, particularly those in younger demographics, are looking to spend their money with purpose-driven brands. And young consumers are more inclined to stay loyal to brands that resonate with their personal values.
With an apparently bottomless array of options in global e-commerce, it’s vital for brands to find ways to keep customers coming back. The classic methods for standing out in a crowded field of competitors are marketing messaging that leverages need or value (e.g., you really need our doodad; it’s the best) or transaction-based loyalty programs.
For more than a century, brands have been rewarding loyal customers to keep them coming back. Free gifts, discounts, and exclusive perks are the mainstays of loyalty programs—which are, at their core, customer-facing vehicles for long-term brand relationships.
Rewards or incentives are on the member side of the equation, while on the brand side is the value of gathering data about spending habits and preferences.
Connect to consumers’ values
Today’s savvy brand leaders are strengthening their connections with like-minded customers through next-gen loyalty programs tailored to their brand purpose. Forming a connection rooted in shared values gives shoppers a reason to keep coming back.
We’re navigating a complex and challenging time—a global pandemic, an uncertain economy, and social unrest as long-standing inequities are questioned. And right now, many consumers are examining their purchasing options carefully. According to a recent Accenture Strategy global survey of 30,000 consumers, nearly two-thirds of consumers want companies to publicly take a stand on social issues like sustainability and social justice.
So reflecting and amplifying your brand’s values through your loyalty program should be a priority.
Get noticed for the right reasons
And here’s another benefit: Aligning your loyalty program with an overarching brand purpose reinforces brand values all around. It benefits consumers, sure, but it can also strengthen your corporate culture. Holistic strategic thinking about how brand values shape loyalty—and vice versa—helps companies avoid token gestures that might unintentionally be perceived as disingenuous.
Putting your brand values into action through your loyalty program highlights the best of your brand. And you won’t need a grandstand and a carnival barker to keep the attention of consumers.
Leverage these strategies to harmonize brand values with your loyalty program:
Build on what you’ve got. Structure loyalty benefits around your brand’s core values. Find ways for buyers’ purchases to help them achieve a personal goal or contribute to a sense of shared community. Peloton offers members (who aren’t required to own Peloton equipment) access to live daily classes, world-class instructors, and curated content, such as training programs and playlists. Members connect with one another through fitness challenges, social media and in-class exchanges.
Nurture the greater good. Loyalty programs are an exclusive club of sorts. Members want to be recognized, but not necessarily with VIP experiences or luxury goods. Consider reward options that bolster members’ drive toward social responsibility. Nike Adventure Club, a kids’ shoes subscription service, is a great example. The program hosts two shoe drives each year—and the donations go to foster children or get recycled.
Be compelling. Appeal to younger, socially conscious consumers by designing rewards that match member donations, or contribute a portion of sales proceeds to causes. Target Circle, for example, lets members be part of determining where Target allocates its charitable resources in their community.
Make it a win-win. You win when consumers choose to spend money on your products; and customers win the emotional reward of supporting others. TOMS Passport Rewards lets members donate their earned points to causes that address racial inequity, support teachers, and assist frontline medical workers responding to COVID-19.
Find the love
Rewarding customers with exclusively tangible benefits—such as perks and cashback - invites them to be lured away by better offers elsewhere. Successful brands are looking to win lasting consumer loyalty, not endlessly duel over benefits with competitors.
A 2019 report from Deloitte Digital shows that more than half of loyal customers use emotion descriptors (like happy, love, and adore) when talking about their favorite brands.
Embracing your brand values cultivates consumer loyalty by inviting customers into your mission. And sustaining that sense of shared purpose forges emotional connections that last much longer than a free macchiato.
The loyalty of all kinds is rooted in emotion. Your brand can access that emotional drive-by designing a values-driven loyalty program that reflects your brand purpose and lets consumers use their brand transactions for the greater good.