Top Mechanics and Features Every Loyalty Program Needs in 2023

Loyalty programs are evolving and improving with new features every day. It’s crucial that your program is staying ahead of its competitors to ensure your members are getting the best rewards and benefits from your program and not moving elsewhere. Staying ahead of your competitors doesn’t mean you have to integrate the most complex new feature that no one has done before- you just have to make sure the mechanics have a distinguishing aspect that stands out to your members and sets you apart from the crowd. We have put together a quick guide of the top mechanics and features your program should have to keep that competitive edge throughout the rest of the year.

1. Omni-channel integration

Having an omni-channel integration feature will allow for your members to earn rewards across various different platforms and channels. This is mutually beneficial for the customer and the brand because this allows the customer to earn more rewards throughout their day to day life and while giving the brands more insight on their customers and their habits. The more information you have the better you can market your program and everything it has to offer to your members. In order to have a successful omnichannel feature, your customers need to be able to earn points online but be able to redeem them in-store or vice versa. This allows more flexibility into the types of rewards your members can earn and will avoid them from having to redeem their points for something they don’t necessarily want because they can’t redeem them across all channels. Receipt validation is a great example of this integration being put to use. When uploading your recent from in-store you are able to earn rewards online and redeem points no matter where you are shopping whether in person or not. 

A successful loyalty program does its best to cater and meet the needs of its members. This feature is a great way to ensure your members don’t feel pressured to redeem their points on items they might not want. Brands are able to get a deeper understanding of customers buying habits and what marketing and offers really work. 

2. Personalization and Gamification

Personalization and gamification are not a new trend when it comes to loyalty programs but their importance still reigns true. By combining these two features you are able to make your members' experience as fun and personal as possible. People like to feel as though they are not just a number when it comes to being a part of these programs and they also love a little competition especially when a reward is offered. By tapping into both of these drivers, you are able to make your customer’s experience exciting and fun while also gathering important data that will allow you to better understand their wants and how they can be marketed better. The combination of these two allows your brand to utilize the data you have gathered and segment customers and make their games and promotions marketed based on their interests. If there is a game that rewards items or discounts that you know your members will enjoy then they are more likely to participate. The more engagement your members have with your brand the more memorable you become to them and they will begin to build brand loyalty. 

3. Partnerships

The idea of utilizing partnerships within a loyalty program has been a growing trend and it isn’t going anywhere anytime soon. This is one of the best ways to build customer loyalty and brand trust. When your program partners with other brands, you are able to offer a much wider range of rewards and benefits that you know your members will enjoy. When members see two brands that they love team up it will get them excited for what is going to be offered and they are more likely to share this news with others and that can broaden the target audience. For example, a transit company can partner with local cafes or restaurants to allow for discounts or rewards for those who used public transit to get there that day. This entices those who may or may not commute to work not only to use public transit but also to support local establishments in the area at the same time. 

However, it is important that you choose the brand that you will partner with carefully. If you decide to partner up with a brand that has a track record of little brand trust or loyalty then your members could question why you would want to be associated with them. In turn, this could make memers rethink their decision to choose your program to be a part of. Make sure to do your research, you could send out a survey, and determine which brands your members would be excited about and see which ones could integrate smoothly with your program. 

4. Tiered Rewards System 

A tiered rewards system is a great way to increase not only your customer retention but also your ROI. By offering different levels of rewards on your platform that are personalized to your customers' buying habits, your brand is able to better incentivize customers based on their specific tier. Brands are able to identify their most valuable customers and focus on customer retention by offering more exclusive rewards and perks to members not only when they make a purchase but also when they are engaging frequently on the program or on socials. 

If you are looking to kill two birds with one stone then a tiered rewards system is the way to go. You are able to increase customer retention and customer acquisition at the same time. Tiers allow for more opportunities to connect with customers beyond just their purchases. You can send different tiers personalized messages about different program updates, level-up opportunities, reminders, and exclusive offers. It’s been proven that a tiered program structure helps build customer loyalty on an emotional level. Once members reach that next level or status they feel recognized and special because the brand was able to make it a gratifying experience through their program. That motivation and drive to continue up the levels will cause them to stick with your program and build that brand trust and loyalty. 

With trends coming and going it can be hard to know what is worth implementing into your program and what could potentially be a waste of time. These 4 mechanics and features are not a part of a trend that will fade as quickly as it arrived. These are features that your brand should put on the top of their priority list when it comes to implementing a loyalty program. These are what will cultivate a long and beneficial customer relationship and as long as you are focusing on what your brand can do to benefit your members while also reaching new customers then your brand will see success. 

Want to know how your program can generate more revenue? Reach out to us today!