

A new breed of loyaltyprogrammes focused on consumer emotion are helping brands extend beyond transactional engagement with their customers. Emotional loyalty can bedriven bynurturinga group of like-minded customers who become advocates of the brand or by using highly relevant content to enrich people’s lives. It also comes when loyalty programmes are entwined with good causes that meet the values of their members.
Why is this important right now?
A lot of loyalty programmes are recruiting members, but then failing to build on that initial point of contact. They are a straightforward point collecting exercise rather than a community-building, content rich, or charity-supporting platform with the potential to truly connect with the way people are living their lives.
In a world full of choice, people want to align themselves with brands that bring additional value. The value exchange between consumer and brand has evolved, with many people now happy to provide their personal information or sign up to an organisation’s loyalty programme as long as they get something tangible in return.
Ralph Browning, Business Development Director EMEA at Epsilon, explained on the latest Let’s Talk Loyalty podcast that consumers who get a reward or something that resonates from a scheme are more likely to return to that brand.
Browning said: “The sooner you can get somebody to get something out of a programme, even if it’s money off a pizza or two for one, if you get that in there in the first 100 days, you’ve got them for life. [If not], eventually, people forget they’re a member of a programme or what the points are for and what [they’re] trying to get.”
Deeper dive
These four brands do emotion-driven loyalty well:
Consider the ‘three Cs’
Community, content, and charity. These three Cs are the foundation of emotional loyalty schemes, with the above examples showing how considering one or more of these Cs when developing a programme can create a compelling proposition for the modern consumer.
The bottom line
Both brands and retailers are thinking differently about how they navigate a changing world. In challenging economic times, consumers will be more discerning about their purchasing behaviour and they will want more from brands, but equally brands know they need to continue to improve in such a competitive landscape.
The way brands communicate with consumers online needs to change in light of the ongoing depreciation of third-party cookies. Brands are increasingly looking at loyalty schemes to swell their data reserves, but as Browning said consumers are wise to what is going on. They are asking “why should I tell you anything about me?”, and “what’s in it for me?”. This creates a fertile environment for emotion-driven loyalty programmes.
Listen to the full Let’s Talk Loyalty podcast featuring Ralph Browning, Business Development Director EMEA at Epsilon.