How much loyalty is there in loyalty programmes?

While the term ‘loyalty’ is often used, it is worth taking a closer look at whether loyalty programmes actually contribute to the development of lasting customer relationships. Let’s discover the key elements that can influence the building of authentic loyalty between companies and their customers.

Loyalty programmes play an important role in building customer relationships, but is this enough? Read on to find out more about the impact of loyalty on consumer choices, and what actions you can take to build a truly dedicated customer base.

What does loyalty mean?

Loyalty can be defined as a customer’s willingness to continue a relationship with a particular company or brand and to make repeat purchases. A loyal customer is willing to choose a product repeatedly, even despite the existence of competition. Loyalty programmes are one tool for building and maintaining customer loyalty.
We distinguish between the following categories of loyalty:

• satisfied customers – who value the brand, do not complain, but are easily taken over by competitors with an attractive offer,
• customers who are loyal because of attractive product prices,
• customers who are loyal because of the attractiveness of loyalty programmes,
• loyal customers with regard to the convenience of, for example, communication with the company, accessibility, etc,
• loyal customers with regard to free products outside the sales offer,
• truly loyal customers – customers who recommend the company in their surroundings and make purchases on an ongoing basis.

We like loyalty programmes

Surveys show that loyalty programmes are highly appreciated by Poles. Data from 2022 shows that as many as 62% of Poland’s population participates in at least one. In addition, the number of people involved increases year on year: in 2022, as many as 96% of participants declared they were active in programmes, which include. Attractive discount offers and discounts on product purchases help to increase active participation. This growth is also due to the widespread availability of mobile apps to monitor purchases, points and available promotions.

The role of mobile technologies

The period of pandemics and lockdowns has led consumers to use e-commerce more intensively. Even with the end of these restrictions, many still prefer the convenience of online shopping, minimising the use of plastic cards or paper discount coupons. Mobile apps have become the standard, with as many as 87% of loyalty programme participants declaring to use mobile apps. The growing popularity of mobile technology shows that it is a key element for customer loyalty management.

Do programmes really build loyalty?

However, the mere presence of a programme does not guarantee full customer loyalty. What is important is long-term and consistent action, based on the values we communicate. It is worth following the partnership approach and treating customers as co-creators of the relationship. Adopting precise, clear and simple rules and being transparent are key to building trust, which is the foundation of true loyalty. In addition, flexibility to adapt to change and listening to the voices of customers are important elements to build long-term and loyal relationships with customers.

Analysis with AI

In this age of evolving technology, the possibilities of artificial intelligence (AI) in loyalty programmes are becoming increasingly attractive. User data analysis is a key element in a successful loyalty programme. AI, with its machine learning capabilities, can help collect and analyse data, allowing the creation of precise audience groups. This allows personalised offers to be constructed and delivered to customers in a timely manner. It is also worth using AI to create message content, based on customers’ purchase history and preferences.

Summary

Loyalty programmes play an important role in building customer relationships, but the mere fact that they exist does not guarantee full loyalty. The key to success is long-term commitment and consistency, based on values, transparency and flexibility to adapt to customers’ needs. The use of mobile technology and artificial intelligence further enhances the effectiveness of loyalty programmes, providing more personalised and appropriately delivered offers. Ultimately, however, it is the quality of customer service and attention to detail that creates true loyalty, not just the rewards or discounts themselves.

If you are looking for a B2B programme for your company, write to us at kontakt@interactivesystems.pl. We have almost 20 years of experience in this niche market.

References:

• Polacy bardziej aktywni w programach lojalnościowych – ARC Rynek i Opinia
• Raport Marketer+ – Programy lojalnościowe 2023
• https://www.oracle.com/pl/cx/marketing/customer-loyalty/what-is-customer-loyalty/
• https://www.marketingbusinessblog.pl/strach-otworzyc-lodowke-czyli-programy-lojalnosciowe-2022-r/
• https://spartavity.pl/blog/ai-w-sluzbie-marketingu-programow-lojalnosciowych-sprawdz-rozwiazania-ktore-sprawdza-sie-takze-w-twoim-biznesie
• https://spartavity.pl/blog/analityka-i-jej-rola-w-budowaniu-programow-lojalnosciowych-poznaj-najwazniejsze-wskazniki-oraz-rozwiazania-wykorzystywane-przez-sparta-loyalty
• https://questus.pl/blog/sztuczna-inteligencja-jako-pomysl-budowanie-lojalnosci-klientow/
• https://www.loyaltypoint.pl/blog/jak-zmierzyc-doswiadczenie-klienta-w-erze-sztucznej-inteligencji/

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