Summary: Unlock True Loyalty: Your Path to Deep Engagement with the Loyalty Maturity Model
Greetings, savvy marketers! Are you ready to supercharge your loyalty marketing strategy? Introducing our groundbreaking Loyalty Maturity Model — a roadmap designed to propel your loyalty program from good to exceptional. This model will guide you through the stages of evolution, helping you ascend towards loyalty greatness.
|1||Points||Earn points for purchase. .||Transactional|
|2||Transactional Experiences||Customize your drink or get a seat upgrade. The experience is transactional.||Transactional|
|3||Product Usage||Receive points for using the product. Often includes points for sharing on social media. This is a huge step forward from Minimally Experiential as it engages the customer in product usage. However, the experience is still transactional.||Transactional|
|4||Deep Engagement||Engagement is a new category of Customer Engagement that is focused on creating a deeper connection between the customer and the brand. Deep Engagement is a huge step forward from Product Usage as it engages the customer in the brand experience. The experience is based around value and is focused on helping the attain the value they sought when purchasing your product. In this phase, the brand and customer are partners in the customer's journey and in building the brand.||Experiential|
All loyalty programs begin with points. Customers earn points for every purchase, which they can redeem for discounts. While this approach builds a foundation, it's inherently transactional, focusing on rewards for spending.
Most loyalty programs today are currently at Level 2 Maturity. In this level, customers are organized into a class structure based on tiers. As customers move up the tiers, they unlock additional perks and benefits such as customized drinks, seat upgrades or room upgrades.
This approach adds basic experiential elements, but the core remains transactional and is still centered around the purchase. Another challenge is that the benefits are often not aligned with the customer's aspirations.
In the Product Usage level, customers earn points not just for buying, but for product use and sharing on social media. This advances engagement but remains rooted in transactional interactions. Customers are still passive participants, and the experience is still centered around the purchase. Value creation is limited to the product itself and does not address the broader customer journey nor the value the customer wants to receive from purchase.
However, this level is a huge step forward from Minimally Experiential as it engages the customer in product usage. It is the first step towards attempting to engage the customer in the brand experience.
One weakness in this model is the product usage is still treated as a transaction. "If you share my product on social media, I will give you points". The customer is not yet engaged in creating the value, in helping build the brand.
This is where true loyalty blossoms. Deep Engagement transcends transactional ties, forging a profound connection between customer and brand. It's about creating a partnership on the customer's journey. The brand delivers value that aligns with the customer's aspirations, making their experience enriching and fulfilling, and the customer participates in building the brand.
In this phase, loyalty becomes experiential, centered around value and brand alignment. Customers are no longer passive participants; they're active contributors in building the brand's story.
Deep Engagement is the highest level of loyalty marketing maturity. It is characterized by a deep connection between the customer and the brand. In this stage, the brand and customer are partners in the customer's journey and in building the brand.
There are a few key things that brands can do to move to Deep Engagement:
By focusing on these things, you can move your loyalty marketing program to Deep Engagement and create a more loyal and engaged customer base.
Ready to embark on this exhilarating journey? Whether you're starting from scratch or seeking to enhance an existing program, the Loyalty Maturity Model is your compass to navigate the ever-evolving landscape of customer loyalty.
Whether you're a startup or an industry leader, our Loyalty Maturity Model is your compass for navigating the evolving loyalty landscape. Let's redefine loyalty together!
Sentrix Labs is a Customer Engagement platform that helps brands build Customer Engagement programs that drive customer loyalty and brand loyalty.