Industry Applications of Success Factors from Loyalty in Luxury

Using state-of-the-art technology that is easy to use, fast as well as secure, is vital for the success of any loyalty infrastructure. Considering the research observed, a blockchain-based infrastructure provides all these benefits, as described by Deloitte in their, “Making blockchain real for customer loyalty rewards programs” article.

Also, don’t forget to use the power of social media, and user engagement. As it can be a great way to leverage technology in your favor and enhance your marketing capabilities.

95% of loyalty program members want to engage with brands through a mix of new, emerging, and growing tech, including blockchain-based platforms, augmented reality (AR), virtual reality (VR), and more (Bond).

People always follow the newest trends, and that is no different with technology and loyalty. When customers find out that a platform is getting an upgrade or that a new app comes out, they want to try it out. So automatically by using the newest up-to-date technology, you are putting your brand at an advantage.

Another study by Bond shows us that early technology adopters are willing to pay more for enhanced loyalty benefits linked to technological upgrades → 69% of early adopters said yes to paying more for enhanced loyalty tech. Even in households with children, the result was surprising with 44% willing to pay more.

Industry Example:

• In an industry like gaming where users are more up to date with the newest tech, implementing innovative loyalty programs with new features is easier and more appealing to the target segment.
• In the retail industry, 85% of loyalty members who were able to use multiple touchpoints, such as apps to redeem their points, reported having a greater experience due to technology (Bond).

Integrating new partners into your own network or joining one should be at the forefront of your decision-making. Find partners that compliment your philosophy and collaborate on loyalty projects, decentralize the process and always integrate new brands. That is the key to success when planning for a loyalty program that should be durable in the long-term.

It was shown that “70% of consumers overwhelmingly like the idea of programs partnering with other brands to increase ways to earn loyalty points” (HelloWorld).

We know from previous research that stand-alone programs are not long-term in fact they tend to die out… so it is important to join a loyalty ecosystem, a network of partners where loyalty between brands and fans can be shared. Leading to a better customer experience where fans can benefit from more options both on the earn and burn side.

Industry Example:

• The Louis Erard program allows the brand to access the whole member ecosystem of Miles & More and Etihad Guest Miles, which includes 35m+ members. Creating more value for existing watch enthusiasts by giving them more earn and burn options as well as appealing to a whole new audience of watch lovers.
• Take the Chinese company, Tmall, and their loyalty program “88VIP”; So far the loyalty program has already established a collaboration with Alibaba and their video-company, providing users free streaming benefits if they are part of the program. Similarly to what Amazon is doing with Amazon Prime.

Point 1: Exciting redemption options are the most valuable incentive for users to join your loyalty program and engage with it, so keep this success factor at the top of your list. Industries like gaming could profit from improved reward options.

Point 2: Always seek to implement state-of-the-art tech, give yourself that advantage over the competitor and work from there, build upon blockchain-based infrastructures as they will shape the future of loyalty as we know it for all industries.

Point 3: Think long-term, join a loyalty ecosystem. Put your fans at the forefront of the discussion and allow them to access a larger network.