Adopting Event-Based Loyalty Transcends Transactional Loyalty
Did you know that a staggering 75% of businesses that create loyalty programs fail to deliver lasting results?
The remaining 25% know the secret to loyalty program success: event-based technology. This technology transforms mundane transactions into meaningful customer interactions.
Understanding the ‘Loyalty Engine’
At the core of this technology lies the ‘Loyalty Engine’. With a loyalty engine, you can assign any reaction to any customer action.
White Label Loyalty captures real-world interactions and stores them as a series of "events." These events - from purchases to geofence entries to content interactions (and much more) - provide invaluable insights into customer behaviour.
Event-based loyalty in action
For example: to improve its social media presence, a business can implement a loyalty engine that tracks interactions across social media, including likes, shares, and comments. Rewards can then be offered to customers for these interactions, encouraging engagement and growing the brand’s platforms.
Or take this familiar example: a customer leaves items in their cart without purchasing (‘event’). The brand sends a timely reminder email with a compelling incentive, like “free delivery if you purchase today” (‘action’). As a result, the customer is much more likely to return and complete their purchase (‘reaction’).
It’s not just about sales recovery; it’s about reinforcing your brand’s presence and showing that you value your customers' business. The personalised touch of a well-crafted email can rekindle interest, overcome hesitations, and drive conversions.
Or picture this: you want to drive footfall, so you send customers that are near your store exclusive offers like “10% off in-store purchases today”. They can’t resist making a purchase, and you get valuable data about their activity.
Now the real magic: use this data to create tailored incentives. For example, if you know a customer bought children’s shoes, surprise them next time with “100 bonus points whenever you purchase a children's book”.
Wait, there’s more: you know they have kids, so you can reward them with discounted tickets to kid-friendly activities. A bespoke reward is much more appealing than a one-size-fits-all offer.
But remember that it’s important to go beyond transactions if you want to build real lasting relationships. Take a gaming company for example. A player reaches a significant milestone in their game (event). The gaming company sends the player an exclusive in-game reward and acknowledges their achievement (action). The player feels proud and recognised, strengthening their emotional connection to the game and company, and fostering long-term engagement (reaction). Thoughtful touches like this create long-lasting customer relationships, and it all happens within the loyalty engine.
The potential challenges
As with any innovative technology, adopting event-based loyalty may come with challenges. Businesses must navigate the intricacies of understanding event data, assigning appropriate reactions, and personalising the loyalty experience. Additionally, expanding loyalty beyond just transactions may require a shift in company mindset and program design.
Overcoming these challenges
White Label Loyalty’s event-based Loyalty Engine streamlines the process. While some of the automations mentioned above may be achievable through preconfigured rules in other reward systems, our engine makes no assumptions about the events or behaviours your company wants to drive. This makes it the most versatile engine on the market, suitable for all industries and use cases.
With our streamlined Loyalty Engine, businesses gain the freedom to assign custom reactions to any type of ‘event’. Interactions are also tracked in real time to respond quickly to customer needs.
Plus, businesses benefits from the ability to fully customise each reward to ensure they resonate with individual customers. This level of flexibility means businesses can create a lasting loyalty experience that goes way beyond the sale.
Event-based loyalty success stories
Take inspiration from SKB Bank, one of Slovenia’s leading banks, who embraced event-based loyalty to increase customer engagement.
SKB Bank wanted to influence non-transactional behaviour, such as word-of-mouth referrals and gathering GDPR consent. White Label Loyalty’s event-based loyalty engine was used to configure a gamified, tiered rewards structure to maximise engagement. All new users had to finish a set of 3 tasks to move up from the Basic Tier to the Bronze Tier. Once completed, new rewards got unlocked.
This program was successful in delivering non-transactional KPIs: users referrals increased, resulting in new-to-bank clients, and there was a 30% increase in GDPR consent.
Industry Expert’s Perspective
According to Achille Traore, CEO and founder of White Label Loyalty, “Event-based loyalty is a must-have in today’s market. By acknowledging and rewarding diverse customer actions, businesses can transcend transactional relationships and gain more control over customer behaviours”.
Conclusion
With event-based loyalty, you have the power to incentivize and encourage the behaviours you desire from your customers. Imagine rewarding social media engagement to boost brand advocacy, offering exclusive perks for referrals to drive new customer acquisition, or even gamifying interactions to enhance customer satisfaction and loyalty.
Beyond these examples, you can tailor your loyalty program to match your specific business goals and strategies. Whether it's promoting user-generated content, encouraging repeat purchases, or gathering valuable customer data, the versatility of event-based loyalty means you can create a loyalty program that aligns perfectly with your unique business needs.
The result is a seamless and rewarding customer experience that forges lasting connections with your brand. That's how you can be part of the 25% of businesses that achieve real loyalty results.