blog, customer loyalty
Loyal customers deserve loyal treatment. That’s exactly the reason why businesses offer reward points, discounts and gifts for returning customers.
But we all have to face the harsh reality – customers now more than ever have more options to buy from different brands. If one business offers a rewards point system, what’s to say another business can’t replicate it?
However, there seems to be a silver lining – more and more consumers are more inclined to show loyalty to brands they feel connected to on an emotional level. So it seems that emotional rewards are the next best thing to integrate into loyalty programs.
Why Focus on Emotional Rewards?
Everyone gets a rush of endorphins when businesses reward points or discounts in return for loyalty. But consumers aren’t always motivated by price cuts and the act of using the discount will soon fade from the memories.
The reality is human beings are emotional creatures. The feeling that brands care and treasure loyal consumers is simply irreplaceable. That’s why 82% of emotionally invested consumers are more likely to stay loyal to the brand. According to the stats, emotionally invested consumers also spend 2.5x more money on brands than emotionally uninvested buyers.
And customers build this connection through emotional rewards. Rather than reward cards and points, consumers receive rewards that appeal to their emotions. Whether it’s by uplifting customers, making them feel confident, or giving back to the world, these sentiments guide consumer decision-making.
What’s an Emotional Reward?
So now that we brought up the importance of an emotional reward, what exactly is it?
Rather than points and discounts, emotional rewards focus on customers’ feelings, on making them feel special, appreciated and cared for. It’s about making your brand relevant in their lives and showing additional value with every interaction.
Emotional rewards can take the form of personalised shopping experiences, random acts of kindness, printed pictures and so much more. “Speaking to your customer’s emotions and passions will build loyalty, advocacy and preference.”
Examples of Emotional Rewards
There’s no better way to explain emotional rewards than through examples. Here are how brands are offering emotional rewards to their customers:
Ben & Jerry’s
Ben & Jerry’s advocates for social justice with special flavours like Save Our Swirled! for the global climate movement and I Dough, I Dough for marriage equality. Not only do they have social justice-themed flavours, but they also donate sales to charities that support the environment, social programs, animal welfare, and other causes.
Aligning with a mission allows them to build customer engagement and drive repeat purchases through the shared values of their customers.
Unilever reached out to Stampix to help them develop a deeper emotional bond with their consumers. As a result, Stampix created an emotion-driven loyalty program that generated an 85% opt-in rate. Their family photos were printed and mailed for free as a gift to grandparents and distant family members during the lockdown. Check client case here.
Even leading makeup brand Sephora works on curating their emotional branding. To create a welcoming community, Sephora offers its members a chance to join makeup groups, get advice from beauty members and receive free makeup classes.
Emotion-based loyalty programs are proven to be the greatest way to inspire genuine and last longing relationships between brands and consumers. The key is to find the reward that fits your brand and start making some customers happy.
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