Recent research from Snappy’s 2024 Customer Loyalty Study has revealed some compelling insights into the power of loyalty programs. The findings suggest that these programs are more than just a nice-to-have—they’re becoming a crucial factor in customer decision-making and brand loyalty.
In this context, Marketplaces emerge as a game-changing solution, offering brands the ability to create dynamic, personalized loyalty experiences that go beyond traditional point-based systems.
What customers value
Consider this: 70% of consumers prioritize purchasing from brands with loyalty programs, and 76% of Americans are willing to spend more when participating in one.
The study highlights three key features that customers look for in loyalty programs:
- Redeemable rewards points for purchases and experiences
- Exclusive discounts for members
- Access to special perks
Interestingly, 73% of customers report viewing brands more favourably when they receive exclusive merchandise or experiences as part of a loyalty program. What’s more, 91% express interest in programs that allow them to select their own rewards.
The Marketplace approach
This is where the concept of a Loyalty Marketplace, like Hilton Honors Experiences, comes into play. By leveraging a digital ecosystem to create a Marketplace, brands can offer a wide range of rewards and experiences that cater to diverse customer preferences. This approach not only enhances member satisfaction but also opens up new revenue channels.
A Loyalty Marketplace allows brands to:
- Expand their reward offerings
- Create personalized experiences based on customer preferences
- Form partnerships with other brands
- Generate additional revenue through Marketplace transactions
Delta does a great job of this on their Marketplace, Skymiles Experiences.
Avoiding common pitfalls
The study also identified common mistakes in loyalty programming, including unattractive rewards, complicated redemption processes and poor communication about program benefits.
A well-designed Marketplace can address these issues, ensuring the loyalty program stands out and delivers real value to customers.
