Daily Insights

Get Loyal to the Game

By: Alizah Asif Farooqi | Jun 06, 2019

As loyalty programs proliferate, marketers must find new ways to augment their program visibility as well as grow member engagement. While brands fight for awareness by increasing loyalty prominence on digital assets, opportunities to support loyalty programs remain. Here’s one way brands are employing a holistic loyalty strategy that encompasses experience-based incentives and streamlined, consistent messaging across digital channels.

Loyalty program tiers gamify the loyalty experience by incentivizing participation at each tier with distinct benefits. Tiers give members a new goal to strive toward with access to enhanced experiential and monetary benefits like expedited shipping. 55% of brands tracked in Gartner L2’s report on the topic adopted a tiered loyalty structure in 2019, compared to 48% last year, with specialty retail and department stores driving the biggest increase.

Brands like Nordstrom and American Eagle Outfitters have relied on tiered structures to not only increase individual spend but also create natural segmentation of customer loyalty. Nordstrom revamped its loyalty program last September to include several tiers. Its diverse range of benefits ranges from personal double points days and a personal in-home stylist. The retailer hopes to sustain its program’s success through these enhanced benefits; Nordstrom’s active loyalty members spend four times more than non-members.