Why Loyalty Programmes Need To Be Personalised

These days, it’s commonplace to make a purchase at a shop, cafe or online store and get asked to join its loyalty programme. Many times, these programmes are enticing. Getting perks for simply continuing your spending habits seems like a no-brainer and is probably why U.S. consumers hold more than 3.8 billion memberships in these kinds of programmes.

At the same time, companies are more than well-aware of all the benefits they get from implementing loyalty programmes. After all, what’s better than having customers that wholly trust and recommend your brand? And this is true beyond retail. Think of hotel loyalty programmes or rewards credit cards.

Just think about the 80/20 rule. Known officially as the Pareto Principle, when applied to sales, it suggests that 80% of sales come from only 20% of the customers. In other words, it’s a relatively small group of loyal people that is often the driving force behind a successful business.

Loyalty Programmes: Great in Theory, Not Always In Practice

Looking at the numbers, it’s no surprise that loyalty has become a priority for all kinds of companies. When a customer is loyal, they spend more money, spend more often and become an advocate for the brand.

  • 57% of consumers spend more on brands they’re loyal to.
  • Loyal customers are 5x more likely to purchase again.
  • 59% of loyal customers are more than willing to refer a brand to friends and family.
Many loyalty programmes, with their benefits, deals, and rewards, are missing a vital component: personalisation.

Post on

Post on X

In many cases, efforts to inspire and strengthen this kind of devotion have taken the shape of loyalty programmes. Hoping to turn casual buyers loyal and keep top customers coming back, companies design programmes where loyalty is acknowledged and rewarded.

But despite the high expectations for these programmes, they don’t always deliver. Customers may be willing to join — the average consumer has around 15 loyalty memberships — but are rarely active in more than half of the programmes they’re a part of.

  • Only 18% of consumers engage with all of the loyalty programmes they belong to.
  • 41% engage with less than one quarter of the loyalty programmes they belong to.
  • 65% of consumers engage with less than half of their loyalty programmes.

What it comes down to is many of these programmes, with their benefits, deals, and rewards, are missing a vital component: personalisation.

How Personalisation Gets Results

Every day, consumers are bombarded with promotional messaging from every direction, whether it’s emails and texts or app notifications and social media ads. The worst part? They’re mostly irrelevant and unhelpful!

To keep from being constantly distracted by all of these messages, most of us have developed an evolved form of a little something called “banner blindness.”

Banner blindness:
A phenomenon where web users ignore content that looks like advertising banners

Originally referring to internet users consciously and unconsciously ignoring advertising banners on websites, the phenomenon has turned into “ad blindness,” in which any kind of generic advertising is recognised and dismissed almost instinctively.

Unfortunately, many loyalty programmes fall into that category of being easily ignored. By operating without personalisation in mind, their communications turn generic and, ultimately, irrelevant.

White Paper

Practical tips for making your loyalty programme work for your customers — and you

A majority of loyalty programme members (78%) are unsatisfied with the current level of personalisation of their programmes. They want to be treated like the unique individuals they are, not made to feel like just another random customer. And when loyalty members do get that personalised treatment, results follow.

By incorporating Personalised Video in loyalty programme campaigns, we’ve seen over 3x more conversions and dramatic increases in both engagement and sales.

Results From Personalised Loyalty Campaigns

  • 3.4x higher conversion
  • 8x increase in engagement
  • 10x uplift in sales

You too can get improved results when you make personalisation a priority. To help you get started, here are 3 ways you can get personal with your loyalty programme.

3 Ideas For Personalising Your Loyalty Programme

3 Ideas For Personalising Your Loyalty Programme

1) Start the Relationship Off Right

From the very beginning, your communications with your loyal customers should have a personal touch. Adding relevant details early will set the tone of your programme, emphasising that you value each member individually and establishing that your messages are not one to be ignored.

A great opportunity for this is onboarding. It’s critical for your members to understand the benefits of your programme from the start. To capture their attention, include personal details in the explainer as opposed to sending generic introductions to every new member.

In addition to having them pay attention, though, you’ll want your members to be able to recall the benefits over time. Make your onboarding process memorable by presenting the information in video form. With visual and storytelling elements, video makes complex topics easy to understand and remember.

Sam’s Club did a great job of this with their cashback onboarding video, which included the customer’s exact reward amount and step-by-step instructions — with visual aids — on how to redeem it.

2) An Offer With Their Name on It

A popular way to keep customers engaged is to send them offers regularly. To ensure these offers catch your members’ attention, add a touch of personalisation.

While addressing your members by name is just the tip of the iceberg, it’s a critical part of signaling that this offer is for them, making them feel special and attentive to your message.

From there, leverage membership data to craft a relevant offer. Try to include information to help them with the next steps, as well, such as the closest location to them or a quick link for them to make a purchase.

Watch how Celebrity Cruises combined engaging video with personal details when offering a special invitation and discount for their Elite Plus member.

3) Let the Good Times Roll

You can also improve engagement by reminding members of the value that your loyalty programme, club or subscription service brings.

Compile all the activities and benefits that they were able to experience from being a member and present it in an entertaining way that will have them ready to dive back into your brand. Remind them about the good times you’ve had together. A year in review can be a great way to do this.

End with a personal invite to continue the journey together, a special offer or simply a thank-you for their loyalty.

Quick tip: Make the content easily shareable to boost exposure. Fun and data-driven videos are great for members to post and share to their network on social media.

More Ways To Get Personal

You can also check out how other loyalty programmes have been leveraging data-driven video. Or schedule a call with an expert to get a demo on how Personalised Video can boost engagement and drive ROI.

We dive deeper into the best strategies and methods for personalising your loyalty programme in our free white paper. Check it out and let us know what you think.

Download the White Paper

Explore More Content

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post

Explore More Content

Subscribe to Our Newsletter

Email * Enter Email

Related Articles

AI and Email Personalisation: The Pen Pal Approach to Email Marketing

AI and Email Personalisation: The Pen Pal Approach to Email Marketing

There was a time when the highlight of someone’s week was a well-crafted, handwritten letter in the mailbox. Today, it’s an anomaly. Your physical mailbox has a stack of junk mail and your email inbox is an infinite well of promotions. When you stumble upon a tailored, meaningful and personalized email — it’s a showstopper. It’s a far cry from the impersonal, mass-produced emails that make customers feel like just another number. People want to feel valued, not targeted. But how can you do that at scale? Look to artificial intelligence (AI) as a clever assistant that speeds up your processes and makes your job easier. Email personalization in marketing uses subscriber data to deliver content that resonates with each reader. Thanks to AI and personalized content, it’s like blending the charm of a handwritten letter with the speed of digital. How Personalized Emails Get Noticed (and How AI Can

Read More
6 Ways Your Brand Can Benefit From Hyper-Personalisation

6 Ways Your Brand Can Benefit From Hyper-Personalisation

From being touted as the “next big thing in business” to the “future of customer experience”, hyper-personalization is quickly becoming a must-know strategy for brands looking to elevate their CX and marketing efforts. But why is it such a big deal? Simply put, customer expectations have risen. Generic marketing messages no longer cut it, with consumers wanting interactions that are relevant, timely and address their specific needs. Hyper-personalization offers brands a way to do exactly that. Leveraging advanced data analytics, automation, artificial intelligence and machine learning, hyper-personalization takes traditional personalization up a notch to deliver individualized experiences to each customer. This strategy helps businesses stand out by delivering the right message at the right time through the right channel. Those who embrace hyper-personalization strategies can expect all kinds of advantages. From boosting customer engagement to strengthening loyalty, here are 6 benefits of hyper-personalization. 1. Enhanced Customer Experience The first and

Read More
What Is Hyper-Personalization and Why Should Marketers Care

What Is Hyper-Personalisation and Why Should Marketers Care?

Did you know that 73% of consumers are willing to share their data with brands if it means a personalized experience? According to our latest State of Video Technology report, more and more people — particularly Gen Z and high earners — are placing high value on personalization. According to them, this is because: It simplifies things and is easier to understand. It makes them feel valued as an individual. It saves them time because the information is relevant. It enables them to discover new things of interest. In short, personalization improves and elevates the customer experience. But don’t think it’s just about slapping a customer’s name onto a generic email. We’re talking about hyper-personalization — the next level of tailored experiences that goes beyond basic data. According to Deloitte, when done right, “hyper-personalization can deliver 8x the return on investment on marketing spend and lift sales by 10% or

Read More

Request a Call

Leave your details below, and we’ll be in touch to show you what Personalised and Interactive Video can do for you.