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Loyalty 3.0

Discover the development of customer loyalty program with C3 Merchant.

The Evolution of Loyalty Programs

Loyalty 1.0

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One-Way Engagement

  • Physical Rewards Redemption​

  • Manual Data Collection

  • Data Are Fragmented

Loyalty 2.0

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Two-Way Engagement​​

  • Automated Data collection

  • Segmented Rewards

Loyalty 3.0

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Revolutionary Engagement

  • Big Data Utilization

  • Gamified Programs

  • 360° Customer Preferences & Lifestyle

The Loyalty 3.0 Model

  • ​Loyalty 3.0 programs combines the traditional loyalty elements, such as points or vouchers with:

    • Engagement Rewards (Gamification)

    • Personalized Rewards (Non-Transactional, Experiential Rewards)

    • Moral Incentives (Promoting Charity and Healthy Lifestyle)

  • All elements are combined with data-driven personalization and several loyalty mechanics including, tiers & badges.

Engagement Rewards

  • Customers Interaction

  • Brand Awareness

  • Trust Building

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Example:

Members are rewarded with freebies each time they interact or review the brand.  

Personalized Rewards

  • Surprise Excitement

  • Personalized Experience

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Example:

Members are rewarded on their Anniversary to create personalized experience.  

Moral Incentives

  • ​Brand Enthusiast Status

  • Society Contribution Status

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Example:

Members will be given the title, "The Savior" when they donate their points to charity.

Customer Loyalty Development in the Current Market Environment

According to Salesforce, 72% of marketers say meeting customer expectations is more difficult than it was before. Shoppers may have many requests:

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  • Quick & Hassle-Free Shopping Experience

  • Monetary Benefits

  • Quality Products ​

Wake Up! Customers Have Changed!

Attitudes Today

Loyal behavior is more than shopping

Personalization is essential

Experiences over Possessions

Curated content, need influencers' recommendation

To-Do

Reward all brand loyalty behavior

Personalizing communication, experiences & rewards

Create memorable experiences using events

Aligning with customers' interest & beliefs

The Benefits of Customer Loyalty Programs

According to business.com, returning customers spend 67% more than new customers. Therefore, retention is the top priority in loyalty programs. A well-designed loyalty programs can drive a variety of other business KPIs such as:​

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Higher lifetime value

Encourage customers to increase their average order value.

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Recurring member interactions

Companies can increase their engagement with customers daily.

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Social media virality & influencer marketing

Reward customers who invite their peers. Offer influencer-only perks and rewards.

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Data collection & user-generated content

Encourage customers to provide reviews, ratings, social media activity.

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​Generate a positive ROI

According to Ogilvy, influencer marketing can increase ROI by up to 30%

Loyalty Program in Return of Investment:​

 

According to Antavo,

93.1% of companies that offer a rewards program have a positive Return on Investment (ROI). 

Digitalizing Your Business Now!

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