Zsuzsa Kecsmar is the Chief Strategy Officer of Antavo AI Loyalty Cloud, a top loyalty technology vendor.
Let’s start with a universal truth: Getting customers to choose you once is not that hard, but getting them to keep choosing you time after time? Now, that’s what separates thriving brands from the rest. And that’s exactly where relationship marketing comes in.
Instead of chasing one-off sales, relationship marketing is about creating a real connection—a partnership, really—that pays off over the long haul. One effective tool for that is a well-built loyalty program. Forrester found that 64% of online adults in the U.S. are influenced by loyalty programs regarding where they shop. Being the cofounder of a loyalty program software provider, I want to break down how loyalty programs can support relationship marketing—and what practical strategies you can start using right away.
Understanding Relationship Marketing
To understand the true value of relationship marketing, first, we need to understand how it differs from traditional, more transactional marketing. Transactional marketing is all about the quick win—getting someone to buy, maybe with a discount or a flashy ad, and moving on to the next. It’s short-term thinking, and while it might boost your numbers this month, it doesn’t always build true loyalty.
Relationship marketing, on the other hand, plays the long game. It’s about creating ongoing value, nurturing trust and keeping your brand top of mind even when customers aren’t buying. Think of it like dating: Transactional is the first coffee; relationship marketing is everything that happens after. You’re not just chasing conversions; you’re earning trust, time and attention. And in a world where switching brands is easier than ever, building that emotional connection helps customers stick, not just shop.
How Your Loyalty Program Can Help
It’s obvious that relationship marketing isn’t a “one-and-done” deal. It’s an ongoing conversation where brands consistently show up, deliver value and build trust over time. One way to keep that conversation alive is through your loyalty program. Being in this space, I might be a little biased, but here’s why I believe it to be true:
1. Creating Emotional Connections
The best loyalty programs don’t just offer discounts, though that remains an integral part, especially in times of financial uncertainty. They make customers feel valued. Think of loyalty programs where higher tiers unlock exclusive access to product launches, brand merchandise, events and gifts: People often keep using these programs and organically share their experiences with friends and family. This can help a brand gain not only a returning customer but also an ambassador and future prospects.
2. Capturing Data And Personalizing The Experience
Loyalty programs can give companies valuable first-party data. Every transaction can tell you something about your customers, such as what they like, when they buy, what matters to them, etc. If you sprinkle in gamified quizzes, challenges and profile fill-out options, you can get to know your customers and create the type of lasting partnership I mentioned earlier.
3. Engaging Across Channels
Modern loyalty programs shouldn’t be tied to one store or app; they should follow customers wherever they are and offer omnichannel accessibility that connects the online and offline experience. Another layer brands can add to this is partner rewards and brand partnerships. Cruise lines, hotels and airlines are prime examples of this; many let members earn and redeem points across hotel stays, airlines and partner brands. This enables value in relevance, recognition and relationship.
Tips For Building A Winning Loyalty Program
If you want your loyalty program to actually build relationships, not just rack up member numbers, here’s what you need to focus on:
Make rewards meaningful and achievable. Set point thresholds that are truly doable for program members, and choose rewards specifically tailored to your audience.
Use data to personalize the customer experience. Remember, relationships evolve, needs change and so do customer expectations. Collect data the right way: Reward feedback, encourage profile completion and offer regular quizzes.
Reward long-term engagement, not just short-term spending. Creating a tier system gives your customers something to aim for and achieve. Yes, they need to spend more, but they should also get better perks. Tiers can simultaneously create a sense of achievement and exclusivity.
Make the experience fun. Gamified experiences take that progression feeling to the next level. They tap into customers’ natural desire to win and achieve goals. Think prize wheels, instant win mechanics and randomized challenges. The key is to keep it simple, rewarding and aligned with your brand personality.
The Takeaway: Building Real Loyalty Takes Real Relationships
Points alone won’t keep customers loyal, but relationships can. Brands can use their loyalty programs as one part of their relationship marketing strategy to help turn casual shoppers into true fans.
But there’s one thing to look out for: Don’t overcomplicate it. In the noise and overwhelming digital era, I’ve found that simplicity wins. Customers want rewards that are easy to earn, easy to understand and genuinely valuable. When done right, your loyalty program becomes more than a marketing tactic. It becomes a key part of your brand’s relationship with its customers. And those relationships are what drive lasting, profitable growth.
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