Keeping your eye on the emotion, not just the transaction
Many brands limit themselves to focussing on transactional loyalty when they review their programmes, as well as the cost of programme and its ROI. But are they really recognising the true value of rewarding customers? Today’s choice-rich customers expect more. They expect to be recognised, to have a powerful experience and to bond with the brand because emotion is the key driver of our behaviour, including our purchasing behaviour.
In our latest research, we observe that brands who reward their loyal customers generate emotions. After being rewarded customers feel excited (82%), compensated (68%), and recognised (67%). According to Gallup, when customers build emotional ties with brands, they’re 32% more likely to visit their store and will spend on average 46% more money. And guess what? Positive emotions drive loyalty: completing the circle.
Emotional loyalty engages customers at a deeper level of commitment, which helps make your customers advocates. Emotions go beyond transactional incentives. The more you make it about transactions, the less you get to create a genuine connection.
And the moment of rewarding is key to having a powerful and positive impact.
Three questions to make sure that you’re making the most of potential bond with customers:
- How quickly and easily can your customers get to that first moment of redemption?
- Are you offering the right rewards for them – those that feel personalised and in line with your brand values and theirs?
- Are your communications balanced – are they evenly balanced between earning and redemption?
Nike leading the way: their loyalty members have access to meditation services from a third-party app, free access to music on Apple, and athletic content. In the works: a new app concept which recognizes customers once they enter a Nike store, allowing them to scan products for availability and pay without waiting in line.
Bonding with your customers is all about rewarding them the right way to generate a positive emotion!