Observed Signal · May 3, 2023 · Other · Source: CMSWire · Impact: 2/5 · Sentiment: Positive
8 Transformative Ideas Shaping Next-Gen Loyalty Programs
This CMSWire article explores eight key trends transforming loyalty programs in 2023, moving beyond traditional points-based systems. Experts Paula Thomas and Julio Lopez highlight subscription-based models (e.g., Panera's MyPanera), experiential rewards that build emotional connections, gamified experiences like KFC's Rewards Arcade, and demographic shifts affecting program design. The article also covers simplicity as a value driver, Web3 tokenization of rewards (citing Starbucks Odyssey), socially responsible loyalty tied to ESG causes, and AI applications for personalization and churn prediction. It emphasizes that next-gen loyalty programs focus on brand loyalty to customers first, using technology to create deeper, more collaborative relationships. The piece includes examples from major brands like Amazon, Boots, Delta, and Bilt Rewards, and references data from McKinsey, Motista, and other studies.
Provides insights into evolving loyalty marketing strategies and technologies, relevant to MarTech and customer experience professionals.
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Key Takeaways & Evidence Grounding
- 68% of businesses plan to increase investment in retention, and 70% of loyalty program owners plan a major revamp in 2023.
- Members of paid loyalty programs are 60% more likely to spend more on the brand compared to free programs.
- Bilt Rewards, a loyalty program rewarding rent payments, is valued at $1.5 billion.
- Starbucks launched its Web3 loyalty program 'Odyssey' in December 2022.
- 68% of Gen Z and millennials view purchases as a reflection of their identity and values.
Connected Companies & Entities
6 Entities mapped“Bilt Rewards is the first loyalty program to reward people for paying their rent on time, launched in June 2021 and valued at $1.5 billion....”
“The December 2022 launch of Starbucks’ Odyssey officially marked the entry of mainstream loyalty programs into Web 3.0....”
“Amazon Prime, with its flat, all-in pricing is a pioneering example of simplicity in subscription-based programs....”
“Delta SkyMiles has revamped its loyalty program to provide members with personalized offers based on their travel history and preferences....”
“Julio Lopez, senior director of strategy, retail practice lead of Movable Ink, a content personalization provider, weighed in....”
“One legacy brand that has totally modernized its loyalty proposition to include gamification as a core mechanic is Kentucky Fried Chicken in...”
Ontology Mapping & Concepts
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