Customer Loyalty in 2024 Should Be Rewarded with Unforgettable Experiences
Throughout many years of experience in marketing and sales, I have witnessed the impact of prices on consumers in Serbia and the wider region, both in the B2B and B2C sectors. A similar situation is present in many other less or equally developed markets. The phenomenon of 'yellow prices' has become the main attraction for customers; we almost feel cheated if we pay the regular price. The question of who benefits more, retailers or brands, is often a topic of discussion on websites and social networks.
I don't have a definitive answer to that question, but based on research and my years of experience, consumers are placing less trust in brands and are becoming less loyal. Instead, they are turning to generic products, known as 'private label' products, and larger packages. The arrival of Lidl in Serbia further encouraged this trend, leading to intense competition where brands are attempting to cope by using different promotions, discounts, and other marketing strategies.
However, traditional loyalty programs that rely on discounts and material rewards are no longer the only option. Increasingly, I have the opportunity to create and participate in a trend that is changing the loyalty landscape - Experience-Based Rewards.
I am convinced that FMCG brands cannot win the race against discounters by competing solely on discounts. They may match them in the short term, but they lose out in the long term. Of course, there's the famous Keynesian counter-argument: 'In the long run, we are all dead,' so managers often opt for strategies that yield short-term return on investment (ROI). Business wisdom lies in finding the golden mean between these two approaches and balancing them effectively.
In the Loyalty Trends 2024 report, research conducted by the Open Loyalty organization with more than 100 senior experts in the field of loyalty marketing, we see that this is one of the key trends in the coming years. In essence, consumer loyalty should be rewarded with experiences that go beyond the ordinary, rather than just immediate discounts. This type of loyalty reward does not exclude discounts as important short-term incentives but adds a qualitative dimension to deepening and building long-term relationships.
Therefore, experience-based rewards focus on providing exclusive, memorable experiences and moments that leave a lasting impression on customers and create a meaningful connection with the brand.
- VIP events: Invitations to exclusive events, product launches, or behind-the-scenes tours.
- Travel and outdoor: Unusual locations and activities, road trips, rafting, mountaineering, skiing, etc.
- Extravagant parties: VIP access to concerts, plays, or sporting events, often with exclusive meeting opportunities. It's not just about watching; it's about consumers being part of the event itself.
- Gastronomic delights: Dinners at the chef's table, exclusive gastronomic events, cooking classes with famous chefs.
- Wellness: Participants can receive wellness packages, weekends dedicated to physical health, or personalized health consultations.
- Education: For the intellectually curious, loyalty programs offer workshops, seminars, or courses tailored to their interests.
Impact of Experience Based Rewards
So why the move to experience-based rewards? The answer lies in the emotional connection. These awards create an intimate connection between the brand and its customers. It's about making them feel valued, recognized, and part of an exclusive community.
For all of the above segments, I personally had the opportunity to see for myself the degree of satisfaction created by customers or partners who will be rewarded in this way, and Smartpoint Adria has extensive experience in creating and performing such business events of the most diverse profiles (parties, VIP events, team building, outdoor activation). If you want to reward your consumers or business partners, contact us!
For Marketing mreža website text written by: Bojan Balaž, Business Development Manager, smartpoint adria