Brand Extension
Strategists
ProdigyWorks: Increase Revenue and Lifetime Value Through Innovative Loyalty Programs

As the holidays approach and we think about the spirit of giving, it’s hard not to consider the growing opportunities within the burgeoning world of brand loyalty programs. Does your company’s loyalty program make your brand stand out and win over the hearts and minds of your customers? Has your loyalty team simply looked at the marketplace to make sure your rewards offering matched the competitive set in your industry or are you truly adding value to customer engagement and retention?

Let’s face it, never in history has there been a better time to be a consumer.  With more information available at our fingertips than ever before and growing numbers of businesses and technologies competing for the same sets of eyeballs and wallets, brands must constantly be on their toes to come up with new ways to vie for the attention, patronage and loyalty of an ever-selective consumer.  Loyalty reward programs are one-way companies have attempted to stand out amongst the pack.

Whether it’s offering discounts on select items, free shipping, or reward points on purchases, loyalty programs present a direct way for a company to connect with consumers and drive retail action.  But what happens when a growing number of companies begin leveraging loyalty programs to reach their audience? How can brands create a rewards program that stands out against growing competition and increased consumer expectations?

Across industries, companies are looking for ways to up-the-ante with their rewards programs.  To stand out in a sea of sameness, companies have to think outside the box to gain and retain consumers attention and loyalty. Here are some innovative examples of programs that are advancing the ways consumers engage with a brand and how they are part of larger trends happening in the loyal rewards program space.


In October, retailer Nordstrom introduced The Nordy Club – a new program that rewards members with more and better perks, the more that they spend.  As a member, when you reach a certain level of spending you unlock Nordstrom gift cards and other benefits like workshops, curbside pickups and being first to shop select brands. 

 

Through the Nordy Club you also gain exclusive access to select member events. Compatible with the Nordstrom app, the Nordy Club keeps consumers engaged with time-sensitive perks and real-time updates on your loyalty status and points balance from your phone.  While reward points are prominent across many loyalty programs, adding benefits and exclusive access to events and workshops engages consumers in a different way than just a simple points-based system.  By creating an emotional connection with customers by bringing them back into the store for rewards and crafting a community, Nordstrom is interacting with their customers in new, valuable and ever-changing ways.

Like most major airlines, JetBlue has a loyalty rewards program, TrueBlue.  Recently, the airline revealed a new offering of free “points pooling” as part of their TrueBlue mobile and computer platform. With this new feature, members can create designated groups to earn and redeem points together, even more quickly. Adding flexibility to reward redemption adds a layer of attraction to consumers.  Not only does it encourage consumers to choose your brand over another brand that doesn’t offer such rewards but sharing or “pooling” points also inspires dialogue and collaboration between consumers, which builds affinity and positivity for the brand.

Lyft and Uber have both recently announced new loyalty programs. Uber’s new Uber Gold program even extends opportunities to earn and redeem into its UberEats platform. With new upgrade perks and status rewards, they’ll now both be competing for riders’ loyalty both on and off the road.

 

 

When Chase needed a way to stand out from the competition and attract affluent Millennials to its new Sapphire card, they turned to ProdigyWorks to tap into our diverse global network of creative geniuses to bring in rapid, high-level outside thinking to come up with entirely new benefits and rewards.

 

 

Chase knew that just catching up to the competitive set wasn’t enough. They needed to create their own disruption that would appeal to a more connected, socially active and community minded audience that places as much value on experiences as actual product rewards.

When it comes to reward and loyalty programs, one thing is certain – the expectations of consumers are not slowing down anytime soon.  With that in mind, companies must be tirelessly mindful of the future.  Brands need to look outside of their organization to identify truly innovative ways to cultivate and expand engagement with customers and anticipate shifts in how consumers interact with their brand.  Loyalty programs are proving to be a highly valuable tool for companies to meet the growing needs and expectations of their customers but the need to stand apart and differentiate you program for the rest is critical to your ongoing success.

From food to apparel to service industries, having a program that consumers can interact with and feel valued by your brand encourages participation, conversion and offers opportunities for additional engagement with your brand.  Offering unique rewards leads to a more meaningful connection to – and longer relationship with your customers!

 


 

Learn more about LMCA’s innovation subsidiary ProdigyWorks – Originating as a partnership with Mensa more than 10 years ago, ProdigyWorks is a unique, global, high-IQ network that takes incredibly diverse combinations of the world’s smartest and most creative thinkers and unleashes them on brands’ toughest innovation, futuring, naming and product development challenges. Come see how rapid, high-level, outside thinking leads to smarter, more sustainable innovation that drives long-term in-market success for the world’s best-loved brands.

 

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