The numbers prove it: loyalty programs have become popular among Brazilians. Whether they are consumers seeking discounts, benefits, and other advantages; or entrepreneurs and companies that see loyalty as a way to improve customer relationships and bring positive returns to the business. Data from ABEMF (Brazilian Association of Loyalty Market Companies) indicate that the number of enrollments in such programs in the country is increasing every year. There are already 320 million registrations, according to the latest study released by the association (3T24).
With this market boiling, companies that want to invest in loyalty often wonder which path to take. What type of program to adopt? How to truly turn relationships into business? The answer to all these questions is: it depends.
Before implementing a loyalty program, the recommendation is always to study your business, outline and understand your goals and objectives, and get to know the profile of the clients you have and want to attract. Although the characteristics of a good loyalty strategy are specific to each business, there are some general rules that can greatly assist those who are starting on this journey or even those who already have a loyalty program and want to make it more effective. We list here some of the items that cannot be forgotten along the way.
Engagement- A loyalty program can have various goals. Bring more people to the store, increase the number of items in each purchase, gain through recommendations and brand promotion on social media. What they all have in common can be summarized in one word: engagement. In the end, what a loyalty program needs to do is engage and direct behavior in a way that is profitable for the business. So, always consider your customers' behavior when developing loyalty strategies.
Data collection and analysis- With so much technology available, there are countless tools that can help a company with data, information, and insights about the business. Regardless of which platforms you will use, keep in mind that you cannot neglect to monitor the progress and results of your program. Is your program really changing behavior? Are the customers buying more? Did the recurrence increase? Who are your most loyal customers? What are your preferences? All of these are questions that cannot go unanswered if you want to succeed in your loyalty program. In addition to measuring impacts, this type of information can help correct routes in case of strategy failures.
Communication -As in any relationship, presence and dialogue are essential for the success of a loyalty program. Remember that engagement is built over time and needs to be "nurtured" through frequent interactions, listening, and feedback. But not only that. Communication must be relevant. Use the data you collect to establish this relationship. Show the client that you know them, that you have prepared offers, conditions, and personalized experiences for them, or even that you are attentive to their needs and desires.
Rational and emotionalThe ideal value proposition for loyalty must combine both aspects, the rational and the emotional. It is, of course, important that the customer feels the benefits of participating in the program "in their pocket," through discounts or redeeming a product with points/miles, without needing to spend more for it. But it is also essential that he feels recognized, part of a community, perceives exclusivity, and has good experiences.
Segmentation –People are different from each other and have distinct behaviors. Don't forget to take this into consideration, and take care of your program's segmentation. The possibilities are many. You can consider transactional, demographic, and even generational aspects. But never judge your consumers as people with a single profile.
And one last tip: no loyalty strategy can help you fix fundamental business problems. There is no loyalty program that can fix a bad product or service, poor customer service, or a brand that doesn't deliver on its promises. So, pay attention to these points to avoid harming the relationship with the audience.
*Paulo Curro is the executive director of ABEMF – Brazilian Association of Loyalty Market Companies; Fábio Santoro and Leandro Torres are loyalty specialists, responsible for the loyalty training course, a partnership between the association and Loyalty Academy and On Target.
