ST. LOUIS, MO. (Oct. 26, 2010) The world of commerce is evolving at lightning speed. The channels, the products and even consumers, themselves, are constantly changing. However, one aspect of commerce has failed to keep up with the current pace of commerce: the loyalty program. Barry Kirk, vice president of strategic consulting, Maritz, explains the problems these static programs create and points to opportunities in a new whitepaper, “Earn, Burn and Yearn: A New Paradigm for Loyalty Marketing.”
“Loyalty marketing is stale,” said Kirk. “That doesn’t mean the programs no longer work or consumers aren’t loyal. It simply means while the Internet and digital and social media have shaped the way brands and consumers interact, most loyalty programs can still be boiled down to a ‘do this, get that’ formula – a formula that fails to connect with consumers emotionally.”
Kirk’s whitepaper discusses the prevailing view in business: that consumer loyalty is singularly created at the time points are redeemed for a reward – the burn. However, this is a model that has remained virtually unchanged for more than a quarter of a century. Modern loyalty programs must begin to differentiate themselves from this foundational model, primarily because the rewards given by most loyalty programs offer far less competitive advantage in the age of the internet and global commerce.
“Loyalty programs must connect with the consumer on an emotional level, by tapping into the earn and yearn, not just the burn like the old model,” said Kirk. “Findings in neuroscience point us to an understanding that the earn experience can be, and should be, just as captivating as reward redemption. Intrinsic motivators, particularly the power of thinking and feeling, can be more powerful than extrinsic rewards in driving human behavior.”
According to Kirk, different consumers are loyal to brands for different reasons – it’s not always a bare-bones economic decision. One-size-fits-all programs no longer satisfy consumers. Therefore, loyalty marketers’ approaches must adapt to multiple consumer personas when designing their programs.
Access the whitepaper at: http://www.maritz.com/White-Papers/New-Paradigm-For-Loyalty.aspx
About Maritz
Maritz is a sales and marketing services company, which helps companies achieve their full potential through understanding, enabling, and motivating employees, channel partners and customers. Maritz provides market and customer research, communications, learning solutions, incentive initiatives, rewards and recognition, effective meeting, event and incentive management services and customer loyalty programs.
For more information, visit www.maritz.com or call 1-877-4MARITZ. Follow us on Twitter at twitter.com/Maritz_LLC and twitter.com/barrykirk.
“Loyalty marketing is stale,” said Kirk. “That doesn’t mean the programs no longer work or consumers aren’t loyal. It simply means while the Internet and digital and social media have shaped the way brands and consumers interact, most loyalty programs can still be boiled down to a ‘do this, get that’ formula – a formula that fails to connect with consumers emotionally.”
Kirk’s whitepaper discusses the prevailing view in business: that consumer loyalty is singularly created at the time points are redeemed for a reward – the burn. However, this is a model that has remained virtually unchanged for more than a quarter of a century. Modern loyalty programs must begin to differentiate themselves from this foundational model, primarily because the rewards given by most loyalty programs offer far less competitive advantage in the age of the internet and global commerce.
“Loyalty programs must connect with the consumer on an emotional level, by tapping into the earn and yearn, not just the burn like the old model,” said Kirk. “Findings in neuroscience point us to an understanding that the earn experience can be, and should be, just as captivating as reward redemption. Intrinsic motivators, particularly the power of thinking and feeling, can be more powerful than extrinsic rewards in driving human behavior.”
According to Kirk, different consumers are loyal to brands for different reasons – it’s not always a bare-bones economic decision. One-size-fits-all programs no longer satisfy consumers. Therefore, loyalty marketers’ approaches must adapt to multiple consumer personas when designing their programs.
Access the whitepaper at: http://www.maritz.com/White-Papers/New-Paradigm-For-Loyalty.aspx
About Maritz
Maritz is a sales and marketing services company, which helps companies achieve their full potential through understanding, enabling, and motivating employees, channel partners and customers. Maritz provides market and customer research, communications, learning solutions, incentive initiatives, rewards and recognition, effective meeting, event and incentive management services and customer loyalty programs.
For more information, visit www.maritz.com or call 1-877-4MARITZ. Follow us on Twitter at twitter.com/Maritz_LLC and twitter.com/barrykirk.