According to a U.S.-based survey, (Statistia, 2022), consumers are enrolled in an average of 16.6 loyalty programs. Consumers are savvy—often seeking ways to earn points and burn points through value-add loyalty schemes—and companies need to provide a solution that attracts and retains their customers in a way that makes good business sense for them. 

Loyalty programs are steeped in traditional marketing practices, but the rules of engagement have significantly evolved over time. Airlines, hotels, coffee shops, telcos and financial services providers (credit cards and banks) now all offer loyalty programs, and they get more sophisticated every day.

Leaders of brands that wish to stay on top of these changes should carefully search for and choose a loyalty program specific to their customers’ needs. High-performing loyalty programs drive value by capitalizing on three core areas:

• Agile and scalable technology
• Personalized rewards
• Seamless and customized user experience

Agile and scalable technology 

The key to building a best-in-class loyalty program is to power it through agile and scalable technology. Airlines like American Airlines and ANA, financial institutions, and other loyalty-focused brands partner with loyalty and tech experts to access the technical know-how and agility without having to build an in-house tech teams from scratch. This, combined with end-to-end support and access to a large accommodation, flights, and activities inventory, are key components of a successful loyalty platform.

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Personalized rewards

Loyalty programs can often fail when they don't offer a customized user interface or the personalization offered to the brand's consumers. As this point from McKinsey's Next in Personalization 2021 Report illustrates, "Seventy-one percent of consumers expect companies to deliver personalized interactions. And seventy-six percent get frustrated when this doesn't happen."  For example, an airline may offer benefits and perks for its loyalty program members such as lounge access, priority boarding, and extra baggage allowance. Similarly, a bank might offer its loyalty members free concierge services, free breakfast, or late check-outs at its partner hotels.

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Seamless and customized user experience 

Being able to power a loyalty program that makes every consumer feel unique and provides data-led insights into what rewards appeal to consumers and provides consumer delight is essential for connecting and building brand loyalty. The ability to earn points, and 'burn' or spend points on travel captivates the consumer and is the original purpose of loyalty programs.

Leaders need to ask themselves about their audience and why they are implementing this type of program:
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• How do you want to engage your customers? 
• What do your customers value, and what kind of solution would be beneficial to them?
• What is the goal of your travel loyalty program?
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Increasingly, more brands across multiple sectors are turning to white-label experts for agile, customized solutions to enrich consumer interaction with their brands. Such solutions help brands expedite their go-to-market strategy, build consumer relevance, and stand out in a crowd of loyalty initiatives. Rocket Travel by Agoda partners with more than 80 brands to help them build travel loyalty programs that work for their customers. Learn more about our solutions.