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The State of Global Loyalty: A Conversation about Latin America (Series)

The State of Global Loyalty: A Conversation about Latin America

What does customer loyalty look like outside of the US? How are companies around the world addressing the evolving challenges of customer retention? And what can US loyalty marketers learn from their global counterparts?

Welcome to our Global Loyalty Series! Seeking to find those answers, I recently posed questions to loyalty experts in our Maritz Global Partner Network, challenging them to offer insights unique to their regions around the world.

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This week, I connect with Mario Giuffra, Managing Director at Promotick.

In his early 20s, Mario founded Promotick, the first loyalty and incentive company in Peru, with his twin brother.  They started managing successful programs for big companies in many different industries:  banking, airline, supermarket, telecommunications, etc.  It didn’t take long before Promotick had expanded throughout Latin America.  They currently operate more than a hundred programs in nine countries.

Mario, what are some of the key challenges and opportunities companies in Latin America are facing when it comes to retaining loyalty program members?

One of the biggest challenges that companies face nowadays regarding the retention of users is the amount of loyalty programs that members have access to. Airlines, supermarkets, credit card programs and even smaller niche programs are adopting bigger and more complex offers over time. In this scenario, mechanisms of differentiation need to be more creative and dynamic to keep programs on track. This can be done through the following strategies:

  • Increasing use of technology to get ahead of new apps.
  • Build a solid structure of data and customer information management to understand their needs better.
  • Look for strategic alliances that allows more added value towards customers. A company rarely specializes in all kind of rewards, which is why finding the right partners strengthens the offer of benefits.

How are Latinamerican government regulations influencing loyalty strategies?

In some Latinamerican countries, tax policies are requiring the companies to pay taxes on some rewards redeemed by customers. This makes the products much more expensive and deteriorates the relationship between accumulated points and dollars spent, which in the end lowers the perceived value of the rewards.

Also, there are contingencies in the work environment when giving rewards. Tax collectors make companies pay taxes if an employee receives a reward. As in the previous case exposed, the product gets more expensive and this strategy of motivation becomes non-viable.

What does customer retention mean to you? What does the ideal, loyal customer look like?

For me, loyalty represents the preference for a product, service, or company over time in a constant and sustained way. Understanding the preference as the first option when it comes to the purchase.

Loyalty is the result of giving a good service at a reasonable price. A loyalty program should be built, therefore, after the service has been given efficiently. We cannot pretend to implement a loyalty strategy if we are not capable of giving the product or service offered initially. For example, if we want to implement a loyalty program for a newspaper company, first we must make sure that the delivery of the newspaper is done well and on time every day. Otherwise, the loyalty program will not work.

The ideal customer is one that buys our products steadily and recommends them to others by their own initiative.

What’s the biggest piece of advice you have for loyalty marketers?

When implementing a program, I consider that the following factors will help maximize the chances of its success:

  • Understand the customer by using all the information provided. It is important to watch and listen periodically.
  • Maintain high levels of communication throughout the duration of the program.
  • Utilize different platforms for operation.
  • Offer effective customer support.
  • Provide ease of use and understanding – clear rules, easy interaction and simplicity.

Finally, what is your wish-list for an ideal loyalty program for Latin American consumers? What would this program look like for participants?

The ideal loyalty program is one that can understand consumer needs and get ahead of them timely. This shows that it understands consumer behavior and  preferences. With this initial strategy, the program would always surprise participants with things that are inside their world of expectations.

Another initiative that I would like to see in a loyalty program is the capacity to provide future credit based on my consumption behavior history. For example, if I lack 5% worth of points to obtain a benefit today and my purchase behavior maintains the same for a long time, I would like the program to allow me to use that 5% I need against my future purchases.

About Our Global Partners

Maritz partners with top loyalty practitioners worldwide as part of the Global Strategic Partner Network.  Carefully vetted, trained in Maritz’ solutions and in regular communication with our solution leaders, Strategic Partners bring geographic market-specific expertise to our global clients.

Rewarding Customer Feedback: Build Loyalty While Gaining Consumer Insights

Consumers have opinions on just about everything. So, what if a company’s loyalty program rewarded customers for the opinions that matter most to the business?

Loyalty programs have traditionally focused on rewards and points for purchasing behavior. As a consumer, I try my best to be savvy about participating in loyalty programs of brands I consistently buy from.

A program I am highly engaged with is the Southwest Rapid Rewards program. I have a Southwest credit card, and like most millennials, I typically prefer being rewarded with experiences.

Because I do my best to get the most out of the loyalty programs I participate in, I pay close attention to the communications I receive from brands I’m subscribed to. That’s why this recent communication from Southwest caught my attention:

The email invited me to be part of a select group asked to participate in Southwest’s Rewards for Opinions panel. This offer gives the opportunity to take surveys on your own time and — this is the key part — receive Rapids Rewards points for completing each survey.

Rewarding customers with points in exchange for their feedback can be an effective strategy for keeping already loyal customers increasingly engaged for a few reasons:

  1. Rewarding for feedback makes customers and program members feel valued and special.

The language in the Southwest email presents the Rewards for Opinions panel as an exclusive group. When I saw that the panel was “by invitation only” I got the sense that I’m a valued customer because I was selected and invited to participate in this program. Likewise, the phrase “your opinions are worth thousands of points” tells the customer that their feedback on the brand experience literally has a dollar value.

To add to that sense of value, brands could consider ramping up the element of status by inviting top point earners to a “most valued customers” opinion panel, including formal invitations and a surprise gift for participating.

  1. Member surveys provide insights about consumers and their demographics that companies and brands can use to shape future business initiatives.  

Many of the surveys in the Rewards for Opinions portal asked about my demographics, spending habits, and much more.

A brand can leverage these surveys to collect new kinds of customer data that loyalty programs do not usually collect.  That information can, in turn, be used to make the loyalty program even more personal. The survey information can also be used by brands to further segment their customers and provide more insight into their spending habits and purchasing decisions. And by positioning the surveys as a tool to provide them with a better brand experience, it’ll be much easier to get a high level of engagement and candid response.

  1. Points for surveys help members increase their earn velocity.

While I am active in my Southwest Rapid Rewards account, I don’t travel often enough to accumulate as many points as I’d like. The Rewards for Opinions panel makes it easier for me to quickly earn points without a huge time commitment.

Based on new consumer research data from Maritz, the most common reason for disengaging from a loyalty program is rewards/benefits being too hard to earn or taking too long to earn — 44% of consumers rank it as their top reason for quitting a program. Member surveys provide an additional, quick way for members to earn points. If a consumer doesn’t travel frequently like myself, it might be hard for them to earn points. If they were given the option to take surveys to earn points, they could earn and redeem more frequently.

Adding a survey element to a loyalty program is a great way to diversify loyalty program offerings, gather information about your customers, and increase engagement within your loyalty program. Brands should consider this in their program design to further drive engagement and loyalty.

Do you receive rewards for providing customer feedback? If so, which programs do you participate in?