4 trends for loyalty programs in 2024

Learn about the main trends in loyalty programs and improve your strategies in 2024

The basic premise of a loyalty project is real and simple: reward your customer for their relationship with the brand and they will come back. But if all the programs follow the same path, have the same logic, work with the same partners and offer similar benefits, the customer may return to any of them. So how do you differentiate yourself and generate value for the customer?

With this in mind, we've mapped out and broken down the main loyalty trends that should be on your radar next year. From the use of Artificial Intelligence to the consumer behavior of new generations, we explain everything you need to know to evolve your loyalty program, delight your audience and generate the best results.

Artificial Intelligence: ally or rival?

In recent years, A.I. has already been used by Marketing, Loyalty and CRM professionals, mainly in automation software and chatbots. Now, with so many tools at your disposal, you have to be careful when choosing which ones to use or not, which ones will be facilitators or obstacles, which ones will amplify human talent or which ones will diminish your team's productivity. 

But to achieve this insight, you need to put the customer at the center of your strategy.

Companies that rush to use A.I. without a customer-centric vision, just to cut costs, are making a big mistake. The right way forward is to adopt Artificial Intelligence to improve your customer's life!

For Harvard, the companies that will be most successful in the future are those that are using Artificial Intelligence to:

• Connecting data and insights from different sources
• Rethinking the customer experience, creating a frictionless journey
• Activate different experiences on multiple channels 
• Reach each consumer in a personalized way
• Constantly carry out tests, seeking innovation and new business‍

‍Lessproducts, more experiences

Offering experiences consists of using products and services as a means to engage consumers on an emotional level, creating moments that are unforgettable.

The ideal time to start investing in offering experiences is now, because spending on experiences is growing at a faster rate than spending on goods and services, and millennials are the leading generation in this shift in consumption. 

Part of this movement is due to the fact that the vast majority of consumers have already resumed their pre-pandemic routines, which includes attending events, getting together with family and friends, shopping in physical stores and being away from home more in general. 

And anyone who thinks that experiences are restricted to amusement parks is mistaken. With well thought-out strategies, various business models can take advantage of this trend and increase customer loyalty to the brand.

The rise of Generation Z

How do you relate to a generation that masters technology like no other, is immersed in the online universe, is concerned about social and environmental problems, has lapses of attention and a great sense of immediacy? 

The first thing to pay attention to when engaging with Gen-Zs and developing loyalty programs for this audience is to create an omnichannel with a focus on digital touchpoints. After all, Generation Z spends the most time online. 

Gamification is also one of the key elements for strategies aimed at Generation Z. According to Forbes, around 60% of Gen-Zs play video games or online games at least once a week. Therefore, adding levels, ranking, missions and badges to your loyalty program will boost audience engagement on a daily basis.

Finally, like millennials, Gen-Zs also prefer to receive experiences as benefits. Behind-the-scenes access, exclusive events or even limited edition products are much more attractive than discounts and cashback for this audience. 

Deciphering the consumer of the future

Because it is sensitive to various factors, from the global economic scenario to personal characteristics, consumer behavior can change faster than you think. Year after year, the way customers relate to brands undergoes major transformations, causing companies to constantly ask themselves: 

• How much is my client willing to pay?
• How can I reach new audiences? 
• Which friction points need to be eliminated? 
• How do I keep my customers satisfied and loyal to the brand? 

And in order not to be caught by surprise, you need to be a few steps ahead, anticipating the main trends and adapting as changes are predicted .

• The evolution of phygital: In search of this balance, brands need to go beyond what was known as phygital and adopt new strategies that meet today's consumer preference: even greater integration between the physical and the digital in the purchasing journey.

• Data protection is a priority: Aware of the sensitivity of their data, consumers are more attentive to issues of information security and demand transparency from companies. They don't want to feel misled by fine print in regulations and want to take control of what will and won't be shared. 

• Conscious consumption and ESGThe consumer of the future feels responsible for making significant changes to environmental, social and governance issues. They recognize that individual attitudes can have a positive impact on the world and want to encourage more people to do the same. 

Loyalty 2024 eBook

2024 has already begun. Are you ready?"Loyalty 2024" is the exclusive eBook that introduces you to the main trends in loyalty and customer relations so that you can create the best loyalty strategies next year!

In this exclusive and free material, you will learn about:

• Use of Artificial Intelligence
• Offering experiences
• Rise of Generation Z
• Consumer of the future

Download it here!