Momentum Protocol Knowledge: Our CEO Kees de Vos wrote an article on Thrive Global.

Loyalty programs are still relevant as a tool for marketers, but changes need to be done to keep those programs, that were created in the ‘80s, up to date with the needs of consumers today. So what should companies do to revamp loyalty programs from?

Emotion is one of the strongest, most unique driving factors behind customer loyalty. If marketers could find a way to drive people’s emotions, they would then discover the key to attracting customers long term. Companies know that it costs more to acquire a new customer than to retain an existing one, and loyalty programs were designed to encourage just that: loyalty. Loyal customers spend more money on brands that they like, leading them to become brand ambassadors.

A lot has happened since Holiday Inn and Marriott launched their first reward program back in 1983; according to the loyalty report 2017 “the average consumer is involved in 14 loyalty programs, but have the capacity to engage with only seven. Companies lose money on time and effort, and customers get no more value from the businesses to which they are loyal”.

Loyalty programs are still relevant as a tool for marketers, but changes need to be done to keep those programs, that were created in the ‘80s, up to date with the needs of consumers today. So what should companies do to revamp loyalty programs from the past?

Read the whole article on Thrive Global.

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