Everything we do – as people, as companies – is about creating relationships, engaging the audience, shaping and creating true loyalty. We’ve made it our business, at least in buzz words, to focus on the emotional bonds between humans and brands. And, don’t fool yourself those emotional bonds are very real. In fact, I give you Dove.
So, if these emotional bonds are real, then why do so many loyalty programs lack a balance in considering rational decisions that humans make, as well as those emotional triggers which are by far much stronger, much more engaging, and can be the foundation of true loyalty. In the book “Switch” (by Chip & Dan Heath), the Heath brothers explain to us that the rational side of our brain is comparable to a rider and the emotional side, to an elephant. Think about that for a moment: if the rider knows where he is going, then he can easily guide the elephant there, right? But, what if the elephant decides he’d much rather get that jar of peanuts; you know the one that is 12 miles off course. Who wins – rider or elephant?
So, what does this have to do with loyalty? In early indications of an upcoming Maritz Canada Inc. research*, over half of the respondents say that the company brand influences their decision to join the loyalty program in the first place and also agree that the loyalty program becomes an important part of their relationship with the brand. Not only that, but they also say that they actually modify their shopping habits based on where they can earn loyalty points.
These early indications tell us a lot – people who love your brand, join your loyalty program and then use that loyalty program to deepen their relationship with your brand. Sounds pretty important, wouldn’t you say? It tells us that a lot of people are making decisions based on emotions even when it comes to signing up for a loyalty program. A few examples:
- It’s 7am: You need a cup of coffee, you choose Starbucks. Why? Maybe you appreciate the people-focus of the company, or want to support fair-trade coffee, or appreciate the art of caffeine?
- You just signed up for the local marathon: You need new shoes, you buy adidas. Why? Because you’re a huge Reggie Bush fan and if he chooses adidas then you should too!
- Your mobile device contract is up: You need a new device, you choose the new BlackBerry Torch. Why? Because with BlackBerry Messenger, you’re always instantaneously in contact with all your closest friends, and their friends, and their friends, and…
People’s choices are a reflection of both the rational and emotional side of the brain. The other element of the rational side: “I should really choose the cheapest option to optimize my cash flow.” – gets trumped by the emotional side that even rationalizes the choice: “If you choose the more expensive option, you get value, longevity, status…
The Maritz research also gave us a glimpse into the loyalty audience in Canada. Over ¾ of loyalty program participants would call themselves “knowledgeable” loyalty program members. KNOWLEDGEABLE – yeah, I wouldn’t try to pull one over their eyes. Integrity is key to your communications, your rewards, and should be a true reflection of the brand your loyalty members are in love with. We also saw that program members overwhelmingly would like to receive and redeem their points on their mobile devices… and, you know, maybe even get relevant communications, on the go, where they can take advantage of their membership.
Folks, Canada has the 2nd largest population of loyalty memberships per capita in the world (second only to the UK). In a country that is in love with loyalty, we need to step up our game so we can cater to our fans (remember, those knowledgeable people)!
Judi Samuels
* During the first week of October, Maritz Canada Inc will be releasing information on this unique loyalty focused research and will share more insight. Maritz Canada’s research team is conducting this work.