Many of today’s customer loyalty programmes are centred on earning points through purchases. However, a more engaging method, termed “emotional loyalty”, is beginning to emerge.
Matthew Fitzsimons, head of strategy and innovation at agency Havas EHS, believes the points-based schemes have to differentiate themselves by the value offered per point.
Customers know their allegiance has a value and they want a fair exchange or they will go elsewhere.
In contrast, schemes based on emotional loyalty don’t offer money off. They are centred on core brand values that resonate with the customer.
One such scheme that has effectively boosted emotional loyalty is VIP (Very Important Pets) for Pets at Home.
Similarly, Waitrose recently launched the myWaitrose scheme.
Fitzsimons says: “These schemes provide a different reward for members’ participation.
For Waitrose it’s free coffee, discounted newspapers and special prices on everyday products for cardholders. For Pets At Home, it’s about helping shoppers’ pets.”
Retailers should do more at an individual level to maintain high levels of engagement in an emotional scheme.
Fitzsimons says: “This engagement can be delivered by generating strong, tailored and relevant content used to deliver highly personalised and relevant communications that continue to resonate with members well beyond sign-up.”
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