Are show-and-save enterprise loyalty programs still relevant, especially when Card Linked Offer (CLO) based cashback programs are on the rise? This is a question that many businesses are asking themselves. In recent years loyalty programs have been on the rise, growing ever more comprehensive and sophisticated. Today’s leaders know that now more than ever brands need to find ways to add value and create positive experiences with their customers. As we navigate a post pandemic marketplace the organisations that thrive in this new era will be those that strengthen and expand their consumer loyalty strategies.
Enterprise Loyalty Programs
We believe show-and-save enterprise loyalty program will have a place in this world and will continue to be relevant.
- New ‘Show and save’ programs will continue to emerge to:
- Engage their customers and understand their purchasing behaviour as they are increasingly worried about ‘Walled Gardens’ and directly impacted by ‘banning of cookies’
- Maintain the same competitive position with their peers (e.g., if one health insurer develops a successful loyalty program, their competitors may find it advantageous to offer a similar member benefit)
- Not every new loyalty program will be a ‘CLO’ program as depending on the targeted customer segment, there may be challenges in incentivising users to link their card to their loyalty program
- Enterprise clients have varying audience, with varying habits – not everyone will feel comfortable with CLO and it’s good to offer members a choice they are comfortable with, and not force a direction for their members. ‘Show and Save’ offers are one of many multiple formats in market in which users can engage through a loyalty program, giving both Business & members a choice on how they wish to engage, cratering for user needs and wants.
- Most of the existing ‘Show and save’ programs are expected to continue, not everyone can shift to a CLO (Card Linked Offer) program and not everyone is comfortable switching:
- Existing successful ‘Show and save’ programs with significant users have a need to continue their programs as these programs are important customer retention tools
- Not all ‘Show and save’ programs will be able to transition to a card link offer program. It is critical to them to keep their customer base engaged in their ‘show and save’ programs to remain relevant in a competitive landscape
- Consumers increasingly seek to maximise the buying power of their money. They will continue to engage with ‘Show and save’ programs that offer value & relevance
The 3 common factors of a successful ‘show and save’ loyalty program will be:
- Making the loyalty program a priority – Energy goes where attention flows, meaning that brands that prioritise their loyalty program as a key value proposition to their customers will succeed. These organisations actively promote the program to their audience, encourage and reward participation. Further to this, they create a narrative for their loyalty program that is consistent with and is supportive of their Brand identity. See examples below:
- A leading multi-purpose Australian insurer (with more than a million members) has made their loyalty program a priority. They communicate and encourage members to leverage the value of their loyalty program. This has resulted in significant member growth and retention of 10%+ year on year. With 10% of engaged users saving more than their annual premium value through the program you can understand why.
- A leading Australian salary-packaging provider (with nearly half a million members) had always made loyalty as part of their core value proposition. Their objective is simple but powerful, they strive to ensure that none of their members are out of pocket through their program (i.e., every member will recover their salary packaging membership fee via loyalty program). 40% of their member base uses the loyalty program regularly and nearly half of them fully recoup the cost of their membership at a minimum.
- Designing the program to foster ‘repeated’ behaviour from their customers – Loyalty programs succeed when their customers use them for the same purpose in repeated occasions. Key drivers to foster ‘repeated’ behaviour from their customers are:
- Offering a variety of offers that encourages first time members to engage with the program
- Keeping a reasonable broad set of ‘Always on/Daily’ offers that inculcate repeated visitation and stickiness
- Keeping the program fresh and update, with a roster of new offers, campaigns and features
- Regular member research to keep abreast of shifting member needs & trends
- Maintain excitement about the program – Loyalty and rewards program is a central part of customer engagement. Members need to feel excitement about the program to stay interested and engaged. Some great ways to maintain the engagement and excitement are:
- Regularly communicate what’s new to the program – it’s a great way to keep your existing users engaged and attract new users. A great new merchant in the program, a great new offer in the program from an existing merchant, or a great new feature in the app can deliver a sense of freshness. Dynamic offers that provide the ‘surprise and delight’ is also a fantastic way to keep your members engaged
- Gamify through engagement – value-seeking engaged members love competition and a chance to win. Best competitions are those that have simple rules and an award that is relevant to the season (e.g., travel offer during school holidays). Redeemable points for activities are another great way to engage the users.
- Develop a roadmap for the loyalty program– continuous improvement of the program (I.e., the App, rewards and offers) makes engaged member feel like the program is invested in. It also provides a channel to offer new ideas and feedback
Entertainment Group’s, Frequent Values was one of Australia’s first corporate loyalty solutions and remains one of the most trusted ‘show and save’ loyalty programs. This program is delivered through three formats – (1) Custom App, (2) White label App and (3) API service. Frequent Values Program has been running for over 15 years and has a program retention rate of 93%. It currently has 40+ Enterprise Customers, 500,000+ engaged audience and 5m+ audience universe. Frequent Values app has recently been re-platformed and is in the process of being rolled out to its customer base. The new app was launched in the market through the launch of 7Rewards program in Dec, 2021.
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Authored by:
Ani Chakraborty, CEO, Entertainment Pty Ltd
Brent Trimmell Richard, Head of Enterprise Solutions, Entertainment Pty Ltd
