The Payment Process as an Opportunity to Grow Loyalty
There was a time when loyalty was simply about offering more miles or discounts to program members and this was sufficient to increase acquisition and improve retention.
Although these tactics remain an important element of the marketing mix for loyalty program owners, with greater competition, greater consumer expectations, and greater adoption of e-commerce, this simple equation is no longer sufficient to drive engagement or garner loyalty.
Successful loyalty programs and participating retailers have to look at the complete consumer experience when defining the tactics necessary to generate customer loyalty. Each touch point, including payment, is an opportunity to engage with the consumer and enhance the experience for your brand.
Payments are an integral part of creating customer loyalty but often overlooked.
One of the least developed, but rapidly growing, steps to enhancing loyalty in the customer journey is during the checkout process. Consumers are looking for new ways to increase their purchasing power and want more payment options at checkout to help improve the overall experience.
Expanding payment options and offering the flexibility of alternative payment types in the shopping cart not only expands payment options, it also increases the likelihood of conversion and the likelihood of a return customer. By decreasing the impediments to purchase and making the transaction more convenient, you are creating a positive overall interaction with your brand.
Utilizing options like BNPL, crypto, or loyalty points as payment options in the checkout offers options for the consumer beyond credit or debit. By offering more payment options in the shopping cart, it benefits both the participating retailer and program owner. For the participating retailer, accepting alternative payment types can increase exposure, access other pools of funds resulting in the potential for more sales. For the program owner, it increases the potential for greater member engagement, program utilization and member loyalty.
In this new equation, loyalty points represent the best option for program owners and retailers to improve the overall customer experience. Loyalty points represent a more secure payment option, without the default potential of BNPL or the volatility of crypto. Loyalty points are something consumers have significant experience with and have readily available to spend making them the ideal choice to create a frictionless, convenient and highly valued payment experience.
For program owners and retailers alike, this broader view of enhancing loyalty through the payment process and utilizing alternative payment types helps increase customer interaction and create a true loyalty experience, not just a simple transaction.
And that is rewarding for everyone.
Engage People Inc.