FIVE OPPORTUNITIES TO CAPITALIZE IN THE NEW LOYALTY ECONOMY
- Bryce VanDiver and Daniela Hawkins
Published: 01 October 2019
The new model for the ‘loyalty economy’ is coming into focus. Customers expect to be able to use their rewards currencies at the point of purchase and apply rewards to any item, rather than being confined to choices in the issuer’s rewards catalog. This point ubiquity—the universal ability to make purchases with rewards currencies at the point of sale using digital wallets— will trigger a huge change in consumer behavior, turning loyalty redemptions into a part of routine shopping and driving frequent an ongoing program engagement. Opt-in transaction data can also become part of data-driven, real-time marketing programs, releasing new sources of value, enabling new kinds of customer experiences, increasing engagement, deepening customer relationships and giving issuers new opportunities to secure ‘top of wallet’ status.