As a business, it’s important that you meet and exceed customer expectations. Consumers need to see value in the products that you offer.
There are two types of loyalty – attitudinal and behavioral.
Attitudinal loyalty is when a customer likes a brand but they don’t necessarily buy from them. Behavioral loyalty involves liking and buying from a brand.
So, how do loyalty programs generate loyalty towards a brand? They do so in two ways. The first is that you give them a reward for buying your products, such as points. The points can add up to provide discounts.
For example, after spending a certain number of nights in a hotel or taking a particular number of flights with an airline, a customer might earn enough points for a free weekend away or a free flight.
Rewards are important, but what’s more important now is recognition. Many customers enjoy surprise rewards, too. For example, if a customer is checking into your hotel and you offer a free wine as part of your loyalty program, it’s a nice surprise for the customer.
Every big hotel company, such as Marriott and Hilton, provide loyalty programs to their customers. Similarly, the big airlines, like United Airlines and American Airlines, also provide great programs.
Companies use something known as Customer Relations Management, shortened to CRM. These are huge databases that use sophisticated data mining, artificial intelligence, and deep learning to figure out the consumer behavior.
If you have lots of data about the purchasing behavior of a consumer across the course of the year, you can use this data to estimate when the consumer is likely to travel throughout the year. You can then adjust your prices and rewards to provide more attractive offers to customers to boost their loyality to your brand.
