Brands2Communities: The New Era of Loyalty

At last month’s Loylogic LIVE event, Loylogic’s CEO, Gabi Kool, opened proceedings by presenting a strategy for loyalty success called Brands2Communities.

In his presentation, Gabi stressed how traditional loyalty programs are becoming too generic, offering one-size-fits-all rewards and relying on easy technological integrations. Instead, Loylogic is working with brands to deliver a more effective approach that focuses on the unique makeup of each loyalty program's community.

Brands2Communities is all about making sure loyalty programs can be more effective by understanding the unique characteristics of their member base and partnering with brands that resonate with those communities.

During the session, which can be viewed on demand here, four key themes emerged:

1. Loyalty programs must understand community DNA

Loyalty program operators must delve deeply into the distinct characteristics of their community segments. This involves recognizing both commonalities and differences among members across various regions and demographics. For example, an Asian airline needs to distinguish between the preferences of its Platinum members in the US, China, Japan, and the Middle East. By doing so, operators can create more relevant and engaging marketing campaigns and brand partnerships.

2. Successful engagement requires segmentation strategies

To effectively understand and segment the community, loyalty leaders should start with basic demographic and behavioral data. These include but are not limited to geographical distribution, tier levels and customer value, engagement metrics, demographic insights that analyze age brackets, income levels, gender distribution, and communication channel preferences, and, of course, redemption behavior. As Gabi says, it’s important to monitor reward redemption patterns to understand member engagement.

3. Creating loyalty program value through brand partnerships

Once a detailed understanding of these segments is achieved, loyalty marketers can position themselves as valuable partners for external brands. These brands are keen to target specific audience segments that align with their own brand values and objectives. For instance, brands known for quality, innovation, customer focus, integrity, or sustainability can be matched with relevant community segments within the loyalty program.

4. Curating relevant content to build loyalty

Loyalty marketers should act as curators, akin to publishers, who tailor content to resonate with their audience. This involves mapping out and understanding the preferences and needs of each segment, categorizing them by strategic importance, and identifying complementary brands and offers. By doing so, they can enhance the member experience and strengthen brand loyalty.

To summarize, Loylogic’s Brands2Communities approach is about deeply understanding the unique DNA of each loyalty program segment and leveraging this insight to foster meaningful brand partnerships and marketing initiatives. This strategy not only enhances member engagement but also positions loyalty programs as critical players in the broader marketing ecosystem.

To chat with one of the team about how Loylogic’s Brands2Communities approach can boost engagement across your loyalty program, click here.



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