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Topics in this article
How many loyalty cards do you carry around or have scanned to an app? Many consumers are now members of many loyalty programs, earning rewards from their supermarkets, gyms, coffee shops and other retailers.
Several global retailers are setting benchmarks with their forward-thinking approaches in this area. Starbucks uses their loyalty program to give special offers and discounts based on a customer’s past purchases. Amazon Prime combines the usual benefits of loyalty programs with the appeal of premium services like free shipping and exclusive access to movies and music to create a strong value proposition for members.
In fact, more than 90% of organizations now employ some type of customer-engagement or loyalty program, according to an Accenture report, and 57% of consumers spend more with brands or providers they are loyal to. At the same time, 77% of consumers say they now retract their loyalty more quickly than before. This shows it is essential for organizations not to make missteps in managing their loyalty programs.
These programs are not just a perk for consumers but also pivotal to building customer engagement and retention – and they’re being significantly transformed by new technologies to make them even more integral to a retailer’s success.
Challenges and technological innovations
Retailers in the Middle East and Africa, like many around the world, face challenges such as low customer engagement, high operational costs and a lack of differentiation in their loyalty programs.
Technology can help them to combat these issues and revitalize their loyalty programs, focusing on omnichannel loyalty to ensure a seamless and consistent customer experience across online, social, mobile and in-store touchpoints.
Gamification and behavioral economics – which combines insights from psychology and economics to understand how people make decisions – make loyalty programs more engaging and fun, while AI and data analytics provide a backbone for personalization and predictive insights.
AI-enabled chatbots can provide full-time support and guidance to customers through natural language processing, conversational interfaces and voice recognition.
These programs must also integrate with a retailer’s ecommerce, customer relationship management and point-of-sale systems. This way, customers can easily earn and redeem rewards, access personalized offers and manage their accounts at all times.
Syntphony: a game changer in loyalty management
Bringing all these tools and functionalities together, Syntphony Loyalty by NTT DATA is a centralized, software-as-a-service (SaaS) cloud platform designed to integrate end-to-end loyalty solutions.
This powerhouse platform is equipped to handle the complexities of modern loyalty programs while delivering a personalized user experience. It supports multiple loyalty programs with unique rules and member bases, making it easier for retailers to scale up their programs as more customers sign on.
Syntphony Loyalty excels in creating personalized experiences through its promotional engine and tiered membership levels. It also improves engagement across channels, thanks to its omnichannel platform capabilities, because customers are more likely to engage with loyalty schemes that offer interactive and rewarding experiences alongside points and discounts.
Gamification makes the user experience better by adding elements like challenges, badges, rankings and rewards that can be shared across social networks. This makes program members more engaged and the program more visible.
The benefits for retailers
If you’re a retailer, there are many benefits of adopting Syntphony Loyalty:
- You can seamlessly integrate diverse digital experiences across channels, which is crucial for creating a unified customer journey.
- The platform’s real-time marketing module and dynamic campaign features let you talk to customers when they need it, making them feel valued and therefore more likely to remain loyal.
- The SaaS model is cost-effective. It can manage many entities and loyalty programs at the same time. This means you’ll get a return on your investment while reducing your overhead costs.
- The security features, including PCI DSS certification and the use of secure data centers in the US and Europe, guarantee that customer data is handled with integrity and security.
Stay one step ahead
The increasing role of technology in shaping loyalty programs is undeniable. With platforms like Syntphony Loyalty, you can ensure that your loyalty program not only fosters customer loyalty but also contributes to business growth.
A 2024 loyalty study has shown that the average consumer now has 19 loyalty cards, 9 of which are active. Don’t let your loyalty program be one of the other 11!