In my previous post, Loyalty Levers and the Pattern Trifecta, I defined three elements that are critical to building loyalty between a consumer and a brand: Value, Brand and Dialogue.
For the majority of situations, the loyalty pursuit begins with Value because it’s the reason most consumers choose to opt-in to a loyalty effort. Consumers generally want the financial benefit a brand is offering in exchange for permission to gain information on purchases, interests, preferences and activity on trackable media.
The problem is that in most situations, the brand’s program is little more than a frequent buyer model. A frequent buyer program is centered solely on an economic value proposition or a communication model where communications with the consumer are predominately one-way promotional emails.
Neither is what I would define as a successful loyalty approach. This is not to say these approaches don’t have value; it’s just they only represent one-third or two-thirds of the elements needed to achieve authentic loyalty. Yet, they are typically both defined as a good approach to loyalty.
True loyalty efforts blend the two value propositions--economic and emotional.
Barry Judge, the former CMO at Best Buy and guiding force for Best Buy’s Reward Zone® said it is the perfect blend of economic and emotional benefits that drive the best results.
Colloquy, a leading loyalty marketing publication, has shared empirical evidence that Barry was right.
So, what are the components of economic and emotional value propositions? Stay tuned for my next blog post to gain an understanding of each and how to build the best for your loyalty effort.