The Recipe for Loyalty Success in 2024

As the loyalty space has grown in profile and popularity through the years, more and more companies have entered the arena. However, simply jumping on the bandwagon is not enough to make a lasting impact. To truly stand out in this competitive landscape, it is crucial to understand the key contributors to success. So, to offer a helping hand, I’ve put together my very own recipe for winning the loyalty game in 2024.

There was once a time where customers were looking for offers beyond material value, but now we’re seeing a shift back. As fun as extra enhancements to the customer experience are, what it really comes down to is how much time and money you’re able to save the customer.

In the midst of a cost of living crisis, loyalty can serve as a buffer. Many loyalty brands are reducing prices for cardholders in both physical stores and online. It’s a strategy aimed at attracting return customers with tailored deals. Consider last year’s ‘Your Nectar Prices’ launch – cardholders enjoyed discounts at Sainsbury’s, providing a personalised shopping experience based on the customers’ buying habits, all while meeting the need to save time and money.

Adopting a money-saving strategy for consumers is, in my opinion, the golden ticket to success in loyalty this year.

Customers prefer simplicity when it comes to promotions. They’re all about time-saving, so promotions seen around the store or online need to be straightforward. Ask yourself: What do customers want? What can you offer them? How are you making their lives easier? Keep your promotions simple and you’re onto a winner.

If you’re in the loyalty space already, you’ll be well aware that collaboration and partnerships within the industry have been gaining popularity and for good reason too. As the complete disappearance of third-party cookies looms, the spotlight intensifies on leveraging data owned by brands and media owners. 

We’re now entering a privacy-first era where first-party data is like gold dust. At Nectar, we’ve always been strong supporters of forming partnerships and collaborating because it forms the basis of how we personalise experiences for our customers and guide them on their journey. In the coming year, those who embrace a privacy-first approach through collaboration opportunities are the ones I anticipate will lead the way to success in the loyalty space.

While time and money take centre stage in customer loyalty this year, providing an enjoyable experience is equally important. If customers are using your service, you want to make it as rewarding as possible. Enhancing the shopping experience is crucial; think about how you can think outside the box to make it more enjoyable.

At Nectar and Sainsbury’s, one thing our customers love is our data playback scheme. At the end of each year, we offer our customers a summary of the products they bought and loved throughout the year. Not only does this create a fun, personalised experience for each individual consumer but it encourages the customer to continue their shopping experience with your brand – and a nice bonus is it also creates some good shareable content for socials, so good promotion for us.

One thing I see a lot that never works like brands think it will is over-communication with the customer. In loyalty and modern marketing, brands often miss the mark on this. Excessive emails and notifications can overwhelm customers, leading them to opt out then that line of communication between the brand and the customer is gone.

It’s essential for brands to strike the right balance in communication – staying connected with customers without becoming overly intrusive.

There’s a lot more behind how to really master the loyalty game but if you keep these tips as your foundations, I reckon you’d be off to a great start. If you fancy hearing more about potential partnerships and collaborations with the Nectar team, be sure to get in touch.

At the core of Nectar’s approach lies a dedication to enhancing the customer experience. Our use of data is closely tied to understanding consumer behaviour, allowing us to customise our offers to each individual. Our goal is to create a highly enjoyable and personalised experience for customers, and to achieve this, we rely on data taken from the customer’s purchasing preferences and habits. This information is gathered from the activity on their Nectar card, enabling us to tailor offers that cater specifically to their needs. Through this tailored approach, customers can maximise their shopping experience, enjoying not only personalised deals but also saving valuable time and money in the process.