Earlier this year, Amazon announced it has more than 100 million Prime members and ever since, there’s been a lot of chatter in the market about paid subscription loyalty programs. The lines between loyalty and subscriptions have increasingly blurred over the past few years as consumers now value convenience and time savings as much (or even more than in some cases) as money savings. To add, companies’ eyes have dollar signs on them knowing margins may improve with the potential incremental revenue subscription programs can drive. However, before plunging into a subscription-based loyalty model, marketers need to take a step back and evaluate if subscription models are best for their brand and its customers.
As loyalty marketers continue to evolve their marketing strategy to remain competitive and exceed the needs of program members, they’re surrounded by disruption and the noise of the latest innovations. Given the complexities that already exist around technology platforms, strategy, people and processes, many ask how do we make sense of all this?
Emotions are something we as humans all have and react to on a daily basis. But as marketers, do we focus on emotions? Do they factor in to loyalty program planning and campaign execution? The majority of humans make decisions emotionally, not rationally. For example, 95% of purchasing decisions, according to Harvard Business School professor Gerald Zaltman, take place unconsciously and emotions are leveraged to drive that decision. In other words, people feel first, and they think second. Appealing to someone’s feelings or emotions is most certainly an art. But naturally, the tendency for many marketers is to focus on the science of what we do as it’s calculated and easier to measure and attribute, especially when it comes to reporting back to finance. Focusing on emotions can be difficult, because they can be unpredictable, and often intimidating or confusing to marketers but they are just as important.