At a time when new brands are being created every day (in all industries, including cosmetics), the general public no longer knows where to turn. In a recent article, Mintel, a forward-looking consultancy, urges manufacturers to rethink their loyalty programs in order to keep their customers’ loyalty.
“A bad, disconnected loyalty program is worse than none at all,” says Mintel. The firm has identified a number of ways in which these programs can be made more effective and relevant.
The question of added value
In times of uncertainty, consumers expect “immediate, tangible value,” rather than mere long-term promises. While points-based systems still have their place, they need to be complemented by tangible benefits such as immediate discounts, cashbacks, free delivery or exclusive rates.
Mintel also recommends focusing on flexibility, giving consumers the opportunity to “accumulate discounts, choose their own rewards, or use them directly at the checkout.”
Personalized offers
“Consumers want to be seen, understood and recognized,” says Mintel. “In a world saturated with standardized offers, personalization is becoming an essential differentiation lever. Thanks to AI, brands can now offer tailor-made experiences: recommendations based on purchase histories, offers sent at the right time, or early access to preferred categories.”
A question of emotion
In an ultra-competitive environment, it’s important to unite consumers. “Brands need to create a sense of belonging that goes beyond discounts. This can involve access to exclusive communities, previews or VIP events, whether physical or online.”
