The following was previously published in an earlier edition of Marketing Insider.
The ripple effects of COVID-19 have changed how businesses attract and retain
customers—and motivated many companies to change how they reward their loyal customers.
Offering transactional rewards attracts customers initially, but then it’s imperative to
create emotional connections that bond customers to brands. To build strong relationships with your customers via experiential rewards, consider implementing these four strategies:
1.
Reinforce relevant company values. Customers want to do business with brands that align with their values. Consumers expect brands to evolve, and they want proof of their ethical practices.
REI, for example, values protecting and sharing life outdoors. The company lives its ethics by raising money to restore nature and offset its carbon emissions. It engages members to support those
same brand values.
2. Expand experiences with strategic partners. Customers often first encounter a brand via a partnership with another brand. Consider recent partnerships between LEGO
and IKEA and between Lyft and Tinder. Finding strategic partners whose values align with and enhance your brand is a compelling way to improve your customers’ overall experiences.
- Consider internal business partners. This may include brand divisions or other product or service areas that can bring new value and experiences to life for your customers.
- Leverage corporate relationships. Sponsorships can offer access to special events and insider content, such as Amex sharing exclusive access to online and in-person event tickets for
select cardmembers.
- Examine potential partners that might solve customer pain points—or delight members. Given the challenging travel environment, many travel brands are
embracing this strategy. Delta, for example, integrated Lyft rideshares into its app, enabling members to get around easily and earn SkyMiles at the same time.
3. Align experiential
rewards with customer passions. Consumers are looking for enjoyment in life—now more than ever. Understanding your customers’ interests and providing valuable and appealing experiences
engages customers and improves their perception of your brand.
Marriott makes the most of this strategy with its Marriott Bonvoy Moments program, which offers experiences matched to
members’ interests in the arts, cuisine, entertainment, and sports.
While not all members are interested in reward experiences or able to access them, the offerings create positive
impressions that can create a halo effect for the brand.
4. Deliver flawlessly—in digital and physical spaces. Providing experiences without glitches is a basic requirement.
Impeccable delivery may require tech support—e.g., website development or app integration—or it may demand a highly personalized human touch.
- Think physical and
digital. Be prepared to execute in multiple spaces.
- Know your limits. Target the number of members to whom you can reasonably deliver an exceptional, brand-boosting
experience.
- Provide training. Front-line, operations, and customer-service employees need to fully understand what’s required.
- Consider costs.
Does your brand pay for the experience? Do you share the cost with a partner brand or even the customer? Is the cost supplemented by a marketing program subsidy?
As we continue to
encounter changing business realities, brands need to make nimble strategic adjustments. The key will be getting creative to find ways to create emotional connections through everyday brand
experiences and reward offerings.