Loyalty reward programs indeed are not anylonguer a way to stand out of the competition as most of companies now own one. It is also costly to maintain. But I believe that with the rise of two trends, loyalty reward programs may have a bright future in front of them:
- Ibeacon/mobile technologies
- Big data
What really matters for the loyalty reward program to be efficient is that it allows the customer to have a customized and top of the line customer experience. And loyalty reward programs may give you the opportunity to know your customers based on its purchases and when and how it got in contact with your brand, but if it is linked with Ibeacon technology, it may even give you some insights on the way it shops.
Shopping is a key element of the customer decision making process, and hence of its whole experience. By having clear insights on its shopping path and experience, you may provide a unique experience to your customers. So far, I don't think anyone has yet tested this kind of process and Ibeacon is still at an early stage of usage. But there is a lot of potential in terms of CRM strategy.
