Loyalty programs have become an important tool for contribution in ROI of the company. The below mentioned trends are just sampling of what will come in 2015.
1. Touchier Transactions
One-touch ordering loyalty appear to be in its infancy but it will play an important role in changing trend of loyalty.eBay is working with several retailers to install touchscreen window displays so customers can shop even when stores are closed.Amazon, meanwhile, is investing in connected-home devices, including a WiFi tool that orders household items with the press of one button.These concept don’t mean a retailer won’t lose customers to competitors, but a good loyalty program with such facility will be seen as relevant and top of the consideration set.
2. Smartphones and Currency Equality
Apple may change the point system. With its iPhone 6, the company has introduced a digital wallet that has the potential to usher in an age when all types of currency, real and virtual, can be interchanged. This applies to loyalty points. The test will be whether loyalty operators join in, but they may have no choice. As the New York Times put it, “Some companies might lose value in their loyalty programs, but others will find enormous value in issuing their own currencies for advertising or data-tracking purposes.”
3. They Want It Now
Technology has spawned a population of Wonkaesque Veruca Salts, getting what they want now. These consumers have diminishing patience for rewards that take years to accumulate, and marketers will be taxed to deliver. It can take years to earn $100 in rewards in some programs, based on “time to reward” research by Environics Research Group, while Canada’s AIR MILES Reward Program takes just six months.
4. Data For My Phone
16% of consumers expect advertising to be available on their clothing by 2024, according to a survey by the DMA.Today, companies are creating wearable devices for infants and pets in addition to our wrists. In the interim, loyalty operators should be investing in mobile rewards as it will likely guide the way. As Jeff Berry, research director of COLLOQUY, puts it: “We are at the early stage of learning how loyalty can intersect with mobile as it branches out beyond the rectangular phone.
Loyalty programs that reward activities from mobile devices – and that collect data to better understand their customers – will find it easier to integrate activity from wearables.” Doing this well requires optimizing websites to incorporate the data.
5. Generation Regeneration
The currently emerging generation, is savvier about social sharing. Sixty percent of teen Facebook users keep their profiles private, according to Pew research. Drewitz suggests the “planting-a-redwood strategy” for engaging teens while targeting consumer based on behavior, not just age.
6.Frequent Flyer Blowback
As Delta Air Lines and United Airlines prepare to shift the earnings models on their frequent flyer programs, competition may emerge from an unlikely place – smaller, regional carriers. Major airlines offer fewer direct flights these days, and some small carriers already collaborate with the majors. Further, regionals with little flight overlap could partner for points and peanuts, giving consumers more incentive to throw their business to a coalition that operates under one program.