The future of loyalty technology is here for brands to master customer loyalty
Customer experience is a key differentiator for brands. Personalised marketing can create such differentiation and that is why every brand today is trying to understand, ‘What does the customer want?’ Reward programs remain to be the most essential tool to understand customer choices. Customers tend to stay with a brand, spend more and even recommend the brand if it has a reward program meeting the customer’s expectations. So, reward programs need to be more attractive.
However, programs are not performing to their optimum and failing to generate valuable insights that can direct modern day marketing. Reasons are as simple as,
· It takes too long to earn a meaningful reward
· Customers lack the freedom to use points like gifting, donating and even converting to other brands.
· Very limited and expensive options for customers to combine points for meaningful redemptions
…. all creating an inertia in the entire loyalty industry.
Scope for innovation
1. Eliminating the inertia
Our deep research and PoCs with some of the biggest airlines and SMEs reinforced our understanding around the existing inefficiencies in the loyalty industry. When we say that the industry is ripe for innovation, it is more at the core- the very engine that drives loyalty ecosystems.
Businesses are unable to scale partnerships beyond certain level. Coalitions have always been cumbersome. Customers have suffered huge delays in loyalty transactions. For e.g., points would take 2 to 60 days to be updated on their accounts. Means to exchange points to other brands would typically cost 30-60% of the reward value.
This leaves the customers with no other choice than to exchange points only as the last option when they are abandoning one program and want to redeem the remaining points somewhere else. This is in no way a pleasant experience. Reward programs can become highly attractive to the customers if the existing inertias are eliminated.
As per Collinson report of 2018, redemption is the prime mover of
· creating sustainable habits of loyalty
· increasing earning activity
· boosting overall brand engagement and loyalty.
However, redemption has to be on something meaningful to the customers and the reward has to have good value. A reward points exchange network should allow customers to collect from multiple brands and redeem for something meaningful to them, all in real-time. Technology is now available that can bring down costs of operations and thereby, no longer reduce the value of the points passed down to the customers.
2. Generating all-encompassing customer insights
Single CustomerView or 360-degree view is achievable only if the brands participate in a reward points exchange network that allows customers to convert points between brands and redeem as they prefer. This will
i. give insights to the brands on customers' wallet distribution across multiple sectors
ii. increase the perceived value of points manifold for the customers.
Imagine a world where every cup of coffee or haircut could earn points convertible to miles? Now imagine the wealth of insights such a network could generate. However, technological inefficiencies have kept the brands to embrace an open model of exchange with varying degrees of openness with every participating brand. It is a matter of trust between the brands so that reward points issued by a local coffee shop is immediately accepted by a global airline.
That is where innovation in the loyalty industry is desperately needed- an affordable solution that will include end to end payment industry grade security, provenance, irrefutability, counterparty risk handling as well as, automatic reconciliation and financial settlement. This will create exponential value for every stakeholder in the ecosystem by freeing up a great deal of time and reducing cost, so that more value can go to the customer.
A big ask. LoyalT is the solution to make the future real, today.
"LoyalT is bespoke in its model of currency exchange and versatile in on-boarding any size of business, irrespective of their maturity."
LoyalT is a global network of reward programs underpinned by blockchain technology. Each brand can join with its unique reward currency and rule set that gets encoded in a smart contract. This will always protect the brand's interest, giving complete control and flexibility of operating within the network. Brands can collaborate with each other at their own discretion and whenever they want, without going through contractual negotiations.
The network of brands increases redemption options for customers. It helps them to quickly generate enough value by combining the points they collected, to make a meaningful redemption.
The brand gets access to the complete network intelligence of their customers behaviour across all the industries, leading to a 360-degrees view. This is the best available insight to give the best possible personalisation to the customers. LoyalT generates accurate campaign recommendations and provides access to a global customer base for brands to run targeted campaigns with a high degree of accuracy.
To further the ease of collection and redemption of points, we have introduced the LoyalT Virtual Card in the LoyalT network. LoyalT technology enables merchant onboarding in minutes.
The customer now has one virtual card to do everything; from making payments at the merchants, collecting and spending points at their will, giving them a completely hassle-free life, when it comes to payments and loyalty.
We have completely transformed IT from being a bottleneck to an enabler. The process is fully automated and click-through.Millions of in-store and online brands can join in minutes without having to involve an IT department. The online brand can be any brand running on the eCommerce and CRM platforms like Shopify, WooCommerce, Magento, Salesforce, HubSpot or even running on a bespoke eCommerce platform. LoyalT completely automates settlements and reconciliations, eliminating any back office intervention.
1. Outcome driven
Brands are charged only when loyalty points are either redeemed or exchanged.
We believe that the industry needs to move up from traditional subscription-based model to an outcome driven collaborative model. Businesses should not pay for a loyalty solution unless they have acquired a loyal customer. Our innovative business model and the intent to become a partner to the brands makes it possible.
2. Fast & scalable
LoyalT offers the brands an efficient way of expanding business networks andon-boarding partners, across the world. LoyalT gives an efficient way of experimenting and reaching the appropriate partners, quickly. This will help the brands to scale quickly with the right co-branded experiences to their customers. A single connection with the LoyalT network gives them access to hundreds of potential partners, automated workflows, consistent reporting, automated reconciliation and settlement. This will help the brand sto stay completely focused on what they do better, instead of worrying about processes and IT.
3. AI driven recommendations
LoyalT is connecting the isolated consumer interactions across the brands in the network to build a first ever real-time network profile of the customer. A customer’s LoyalT wallet share, and activities are the important inputs to build the persona, recommend future campaigns to the brands and real-time efficacy of the campaigns. This is powered by the advanced machine learning algorithms which work on the rich and unique transactional data taken from the network. Brands can communicate instantly with their customers and push offers on the consumers mobile. This results into in-moment engagement with the brands.
4. Secure & irrefutable
LoyalT ensures protection from all fraudulent activities leading to establish trust between brands, globally. The network also identifies every issue of currency and its provenance while providing a common financial view. This makes liability management, regulatory reporting and fraud detection more efficient. Each partner brand has the flexibility to negotiate and update the engagement rules, leading to a more profitable engagement.
5. Scope to globalize & grow
SMEs using our exchange-enabled reward program can issue their points which are then exchangeable to points issued by other brands globally. For example, a local brand becomes special when their points are exchangeable for use across leading travel brands. This can help those travel brands acquire the happy customers who collected to travel to their dream destination.
Even the brands without a reward program, can join the LoyalT Exchange and start rewarding customers,globally, with immediate effect. We provide a quick onboarding and Exchange-enabled reward program to help such brands.
6. Influencer backed promotions
LoyalT Brand referrals: The brands can build an Influencer base by incentivising their customers to refer their brand using LoyalT’s Brand Referral feature. Brands are able to do marketing promotions through influencer advocacy in an extremely efficient manner. The brands tap this data and reach out the individuals who are naturally bringing them more sales and use that to incentivise them further. LoyalT makes the entire process fully transparent and easy to manage and highly attractive for both, the brands and the customers.
LoyalT network referrals to brands and friends: LoyalT focuses on incentivising consumers to generate consumer traffic in the network. Consumers can refer LoyalT to peers and earn points when they register. These points are freely usable in the network.
LoyalT also focuses on using the consumer advocacy to increase the brands in the network. LoyalT incentivises consumers handsomely when they approach brands and help us to onboard them. Many affiliates and agencies around the world are currently working with us, to extend the network by onboarding brands of all sizes.
"Our aim is to remove the frictions in the loyalty industry and make reward points as liquid as cash. The brands do not have to resort to heavy discounting or expensive cashback schemes anymore, to attract customers. LoyalT brings benefits to the entire loyalty ecosystem, thereby making reward points more rewarding."
Watch how LoyalT is bringing benefits to the entire loyalty ecosystem.