5 Reasons for Using Exclusivity in Your Loyalty Program
Zsuzsa Kecsmar
International Loyalty Personality of the Year 2024 // Powering loyalty programs with tech. Proud co-founder and Chief Strategy Officer at Antavo (Gartner & Forrester Recognized Vendor) // Click FOLLOW #loyalty and #tech
Do you want to reward your customers, but without giving up your margin? Are you looking to go beyond “strictly business” and build a real relationship? Well, nothing revs up a customer’s imagination than exclusive loyalty programs!
It all comes down to behavioural science, really. The idea of receiving something unique, exquisite or reputable is a far stronger motivating factor than simple discounts.
Ok, let’s dive in.
More often than not, the way we “feel” about a brand determines how we act in relation to it. Exclusive loyalty programs may take different forms, but they all aim for the same overriding objectives: enhancing brand awareness, reducing customer churn, increasing market share. On an added note, having experiential rewards contributes a lot to the feeling of exclusivity.
While you can’t put a dollar value on emotions (they’re priceless—right-on, Mastercard), millennial fashion customers are really good at deriving brand value from the emotional reward. As brands become increasingly aware of this reality, exclusive loyalty programs with experiential rewards are conquering the fashion stage.
A VIP experience should, by definition, be an exquisitely special reward. It’s designed for a selected audience, the privileged few – and makes the perfect mix to convey the feeling of very special treatment. Like, for instance, a high fashion brand taking you to Saville Row, Mayfair, to see how traditional bespoke tailoring works.
Understanding which rewards appeal most to your high-valued customers is very important, because whilst a ticket to a summer festival, for instance, may seem like a special and exquisite treat to one person, it can actually be quite dull for the next. People want to feel like they are being offered something really special and not generic. Exclusive loyalty programs should be developed in a way that they hit the sweet spot of the most relevant customer base.
This was just the appetiser; for a full course, visit our blog and check out this article.
