Leading marketers such as Mastercard’s Global CMO, Raja Rajamannar, have questioned the future of customer loyalty, given the rise of digital consumption and the push for consumers to s subscribe to a multitude of services. However, new research from Ogilvy suggests that brands and marketers can still make this facet of marketing work.

An article by Ogilvy, The habit of loyalty, lists five steps marketers can take to redesign tired loyalty programs. The pandemic has upended old habits and customers are creating new ones online, the report says. According to a previous McKinsey study, 71% of users (first-time and regular) plan to continue using digital channels to the same extent or more post-pandemic.

Historically, brands have preferred to focus their investments in digital platforms primarily on customer acquisition. But with costs rising on big platforms like Facebook, Google, Amazon and Snapchat, reaching new customers online is only going to get more expensive, and brands that take this approach are likely to struggle to secure higher returns. forcing brands to rethink their loyalty programs. For example, when Apple rolled out its iOS 14.5 update in April 2020, new features made it harder to track users, causing the average price per ad on Facebook to skyrocket by 47% from a year-over-year in the second quarter of 2020. 2021.

Here’s how the document suggests brands can rethink their customer loyalty programs instead:

High added value actions: For most companies, successfully getting customers to perform a small number of these actions while interacting with a brand can have a disproportionate positive impact, according to the report. Consider in the media and entertainment space, a good example is the wishlist, with studies estimating that even an item on their wishlist is 70% more likely to come back the following month than those who don’t. not.

Timing matters: Once brands have identified an action with high added value, timing is essential to improve loyalty performance. With the rise of technologies like AI and predictive analytics algorithms, marketers can now more closely track campaign and offer performance. For example, Jakarta-based online grocery delivery platform HappyFresh needed to quickly resolve a surge in orders – and subsequent abandonment of carts from frustrated shoppers – in the Covid pandemic. To fix the problem, the online grocer identified these times and created an in-app message to notify users of the situation and give them a choice to opt in to the updates. This led to purchase rates of 33%.

Pushing creative boundaries: The authors of the report argue that customer engagement is a tool for generating data as much as a means of acting on information. Brands need to learn from this process, and to do that, they need to experiment with engagement to find out what works. For example, Australian ridesharing brand Car Next Door experimented with its onboarding process using triggers such as revenue badges to double conversions from cars listed to complete driver profiles.

Opt for a transversal approach: Tiket.com, an Indonesian online travel platform, was able to triple its revenue by implementing a cross-channel integration experience. The brand knew that app and web users had different experiences. So she designed two unique onboarding flows to make sure she spoke effectively to users on the web and within the app. To make the most of the potential, brands should consider an engagement strategy and organizational model that allows all this data to be shared and orchestrates engagement consistently across the user journey, according to the report.

Build a habit (long term): Brand loyalty is about brand value, says the report. Too often, customer engagement is seen as a short-term tactic and piecemeal approach. However, the authors argue that this process should encompass Mark building and engagement, and brands should use the loyalty process to “unlock loyalty, brand value, and business results.”