Yusra3
VIP Contributor
In the battle for customers, there are now many incentives for businesses to encourage customers to keep coming back that is a Loyalty program. From airline to retailer and coffee shops you are being asked to earn points, get rewarded, and you're too given discounts and perks for your support all the time. While it remains true that loyalty programs have questionable value for customers, they do promote the interests of airlines, travel sites, and financial institutions. Whether the outcome will be positive or not depends on how you are able to deal with them.
Bonuses/Benefits of Loyalty Programs
In a properly organized loyalty program, the clients are presented with real benefits in terms of value.The primary benefits include:
•Cascade & Discount - Several platforms provide you with cash back, coupons, or savings on additional purchases all due to being in the membership.
Bonus Perks - purchasing a gift worth more than $75 with a free gift enclosed, receiving an alert on upcoming sales, or getting a complimentary product are those perks that are only available to loyalty members and not the other.
Personalization of Experiences - The more data that companies may have for your buying habits, the easier it is they thus to offer you precisely personalized offers and recommendations.
Brand Affiliation - By joining a loyalty program you become a part of the brand and its community, and it starts to influence not just your buying decisions but the way you see the world also. So in simple words, brand loyalty will definitely incline you towards advocating for the company you are loyal to.
The Con of Loyalty Programmes is an apprehension that they might be a hack or a fraud.
Nonetheless, discount programs might not always be worth the trouble. Be wary of these potential downsides:Be wary of these potential downsides:
They Make Overspending Possible - The credit card could now be the reason for over spending with the promise of earning rewards that may tempt you to spend before or more.This wipes out savings.
Redemption Complexities - On top of reward systems being hard to cash in like limited redemption options, confusing point systems and expiring rewards, redeeming rewards which are basically junk presents a great challenge.
Data Privacy Risks - For the purpose of providing personalization, people give access to companies a lot of personal information. This leads to the very core discussions of privacy concern around how the such data is collected, distributed, and secured.
Multiplication ofetary - There's no better way of managing dozens of programs and forgetting about rewards, losing track of those points, use in the wrong way, and eventually, paying higher rates than need be.
Bonuses/Benefits of Loyalty Programs
In a properly organized loyalty program, the clients are presented with real benefits in terms of value.The primary benefits include:
•Cascade & Discount - Several platforms provide you with cash back, coupons, or savings on additional purchases all due to being in the membership.
Bonus Perks - purchasing a gift worth more than $75 with a free gift enclosed, receiving an alert on upcoming sales, or getting a complimentary product are those perks that are only available to loyalty members and not the other.
Personalization of Experiences - The more data that companies may have for your buying habits, the easier it is they thus to offer you precisely personalized offers and recommendations.
Brand Affiliation - By joining a loyalty program you become a part of the brand and its community, and it starts to influence not just your buying decisions but the way you see the world also. So in simple words, brand loyalty will definitely incline you towards advocating for the company you are loyal to.
The Con of Loyalty Programmes is an apprehension that they might be a hack or a fraud.
Nonetheless, discount programs might not always be worth the trouble. Be wary of these potential downsides:Be wary of these potential downsides:
They Make Overspending Possible - The credit card could now be the reason for over spending with the promise of earning rewards that may tempt you to spend before or more.This wipes out savings.
Redemption Complexities - On top of reward systems being hard to cash in like limited redemption options, confusing point systems and expiring rewards, redeeming rewards which are basically junk presents a great challenge.
Data Privacy Risks - For the purpose of providing personalization, people give access to companies a lot of personal information. This leads to the very core discussions of privacy concern around how the such data is collected, distributed, and secured.
Multiplication ofetary - There's no better way of managing dozens of programs and forgetting about rewards, losing track of those points, use in the wrong way, and eventually, paying higher rates than need be.
