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Loyalty, Rewards, and Progress in the Digital Era

Digital loyalty and rewards programs bring both problems and opportunities.

The Right Way to Reward Your Customers

Guest post by John Carvalho In today’s fragmented marketplace, true brand loyalty seems like a hard thing for companies to acquire and harder still for companies to hang onto. Yet, it’s arguably ever more important. Loyalty programs are a key tool for doing so. From a psychological standpoint, allowing consumers to earn and use perks lead to feelings of status, stronger brand-consumer relationships, increased word-of-mouth, and increased purchasing intentions.

The Fatal Flaw in Loyalty Programs (And How to Minimize Damage)

Loyalty and rewards programs can be great motivators. When a business rewards the behavior they want from their customers – say, giving them a free coffee after they consume nine – they encourage that behavior. The most potent loyalty programs go beyond mere periodic freebies and confer status.