3 reasons loyalty programs aren’t an option

If you happened to be at TUCON 2013, TIBCO’s user conference, you heard about Turning Customers into Fans from Head of Client Technical Services Wen Miao. In Miao’s words, “It is no longer acceptable to have only a transactional relationship with customers.” He’s absolutely correct. We are in an age where we can use our loyalty platform as the way to capture each and every engagement with our customers.

Here are three compelling reasons why loyalty programs are no longer an optional part of marketing:

Mobility

Consumers are on the move and accessing information about brands from traditional sources like stores and the Web, but also on laptops and tablets, sometimes from within physical locations. Keeping track of the use of multiple, even simultaneous interactions, are impossible without a platform that listens and knows the customers voice over any channel. The same goes for outbound engagement—brands need to instantly discern a customer’s preferences, the channel for communication, and the context for each moment of engagement.

Big Data

The amount, variety, and speed with which data moves in today’s marketplace are growing rapidly; but so have the tools and techniques to keep track of what’s happening. Some of that data is in systems of records as transactions and stock, and some is on the move, like geolocation. Brands require a platform that can keep track of historical information, inventory and sell-through, and what’s happening now in the customer’s ambient environment. This amount of data creates analytical treasure troves that can be used to better position offers, test and learn, and increase revenue and loyalty.

Permission

This may be coming last, but the permissioning aspect of a loyalty program is critical to avoid being creepy. Loyalty is more than a reward for spending—it is a customer raising their hand to be part of something more than just a purchase. Loyal customers are advocates as well and spread the good word about a brand. Lastly, loyal customers are forgiving of a brand’s faults and less likely to create “negative press.”

These three reasons for loyalty programs are in themselves enough to compel most brands to start down the path to customer loyalty marketing. This reminds me of the fourth reason for loyalty programs: Your competitor has or is about to launch one.

This post first appeared on the Loyalty Lab Blog and has been lightly edited.