PUNCHKICK INTERACTIVE Mobile-First Brand Loyalty Strategy Guide HOW TO DESIGN A MORE EFFECTIVE CUSTOMER LOYALTY AND ENGAGEMENT PROGRAM ON MOBILE 55 East Monroe Street Floor 36 Chicago, IL 60603 800.549.4104 punchkick.com hello@punchkick.com
BRAND LOYALTY STRATEGY GUIDE 2 Table of Contents LOYALTY STATE OF THE UNION User-Centric, Mobile-First Loyalty Program PERSONALIZATION A Conversation, Not Spam Criteria is a Plural Word for a Reason Smarter Carrots for Smarter Phones INCENTIVE-BASED DESIGN Maximizing Minimal Session Lengths Intersection with Loyalty Programs American Airlines: Capitalizing on Game Mechanics MOBILE OPTIMIZATION Using Mobile to be More Accessible Using Mobile to be More Contextual Walgreens: Using Mobile to be More Personal LOOKING AHEAD From Personas to Personal From Channels to Channel From Mobile to Everything Else 3 6 10 12 14 16 18 19 21 22 23 24 25 27 30 32 33 34 35 36 37
BRAND LOYALTY STRATEGY GUIDE 3 Loyalty State of the Union Customer loyalty programs have been a favorite tactic of retailers and other brands to retain customers and maximize their interactions for decades. They re a proven way to boost customer engagement and increase spend, and have adapted to be relevant across a wide range of industries and verticals. But with the advent of mobile devices and the proliferation of digital channels, there have never been more opportunities for brands to embed themselves in customers daily lives and interact directly with their audiences, and so brand loyalty programs have had to evolve rapidly to translate to mobile.
BRAND LOYALTY STRATEGY GUIDE 4 But while mobile has revolutionized how brands are able interact with their customers, most organizations have been sloth to revolutionize their loyalty program approach in a similar way. Just because loyalty programs are more accessible than ever before doesn t necessarily mean they re more popular since 2008, McKinsey research has shown that loyalty membership increased 10% each year, with the average household subscribing to 23 total memberships. But of those, research also tells us that customers engage with as few as 8 of them on a regular basis, demonstrating that while it might be easier to subscribe to loyalty programs than ever, users find little use for loyalty programs in the long term. 2010 2011 2012 2013 2014 2015 2016 Since 2008, loyalty membership has increased 10% every year, with 23 total loyalty program memberships in the average household. SOURCE: MCKINSEY
BRAND LOYALTY STRATEGY GUIDE 5 So how can brands overcome this barrier to engagement and create more effective loyalty programs that transcend the competition? How can mobile become a true asset in the brand arsenal to engage customers more deeply and better demonstrate the lifetime value of a loyalty program? It might seem intuitive, but the simple truth is that loyalty programs that fail to resonate with users fail to accurately address users needs. The best loyalty and rewards programs come from brands who truly understand their customers not just the demographic data about who they are and what they like to buy, but instead the underlying psychological drivers for their behaviors. To remain relevant on mobile, brands need to structure their loyalty programs around what users actually want from a mobile context, and the best way to ensure alignment with users priorities is to start with a user-centric approach. Loyalty programs that fail to resonate with users fail to accurately address users needs. In this strategy guide, we ll explore how any brand can build a more effective customer loyalty or rewards program that better engages with target audiences and takes advantage of the unique capabilities of mobile platforms. By rethinking customer loyalty for the age of mobile micro-moments, brands can capitalize on users attention and reap the benefits of rewarding customers for their everyday brand interactions.