7 Reasons Why Loyalty Programmes Are a Marketing Must Have In 2022!

Loyalty programmes are taking industries by storm. Despite being around for well over 200 years, these incentive schemes have begun to inherit a new form.


February 3, 2022

Driven by data collection and brand differentiation, businesses have moved away from traditional incentive schemes towards digital points-based reward programmes. With big names within the hospitality, retail, and leisure industry continuously updating their schemes to meet consumer wants and needs, the value of such reward programmes has been made clear.

Let’s delve into this a little deeper, and explore why your business should have a loyalty scheme in 2022.

Supports Customer Journey

Loyalty schemes have the ability to carry the consumer through to purchase. With the right incentives, your product and/or service can appear more attractive in comparison to competitors. Therefore, when a consumer deliberates on which business to purchase from, they are likely to opt for the purchase that offers the most value, whilst being rational in their decision.

An example of this can be seen between the two takeaway Coffee monopolies, Starbucks and Costa. Imagine a customer is standing in front of the two stores, they have a loyalty programme for both and like them for different attributes and reasonings. If either company can offer a strategic reward at this point, through geo-targeting, such as offering their usual order half price, this will likely lead to their decision.

Promotes Brand Advocacy 

Accurate, meaningful B2C interactions have been known to increase brand advocacy. Where many brands fall short in their incentive schemes is failing to view them as an opportunity for meaningful business engagement. Whether it be offering a discount on the customer’s birthday, or rewarding extra points on a specific number of purchases.

Many brands have begun to reward engagement, not just simply spending. The likes of leaving reviews, or referring a family or friend have become incentivised, altogether promoting advocacy characteristics.

Increases Habitual Purchasing

Loyalty schemes provide another reason for a customer to come back time and time again. This, in turn, creates irrational consumer behaviour, as the customer begins to see the brand as an extension of themselves, a habit that is potentially part of their day to day routine.

Attracts New Customers

As your loyalty scheme becomes more and more recognised for its ability to geo-target, its gamification, or simply its awesome rewards, it will naturally begin to attract new customers wanting to benefit from the same!

Highlights Differentiation

For many businesses, their loyalty scheme is considered their best attribute. Consider Tesco, and their Clubcard points. Greatly considered the most attractive loyalty scheme amongst its competitors, Clubcard provides Tesco with an invaluable competitive advantage.

A specific reason for its success is the customers’ ability to exchange Clubcard points for money off of other brands. Customers can choose between an extensive range of businesses within hospitality, retail and more, altogether allowing the customer to benefit from the reward scheme further than the business in which the purchase was made.

Expands Consumer Data

The move towards digital incentive schemes has meant that businesses can see a return on their investment through indispensable consumer data. This means brands can make more educated, consumer-centric business decisions backed by reliable inferences. 

Strengthens Client Engagement

Linking back to our previous point, reward schemes offer an opportunity for engagement, a direct line of communication between brand and consumer. This enhances the value of each individual customer, as they offer more than just purchases, but feedback, data and loyalty.

So how can you start a business loyalty scheme?

It is clear that incentive programmes can offer an impressive ROI, so why do they not always work?

Reward Schemes are complex, and with the wrong strategy, they can fall short of their potential benefits. This is where it may be worthwhile reaching out to loyalty scheme specialists such as ourselves. We are capable of adapting and personalising reward programmes to solve specific business concerns.

In short, we make loyalty work for every business- so get in touch with us to find out more.