Maximizing Loyalty with MarTech

Maximizing Loyalty with MarTech: The Power of Flexible Point Earning

Jeff Zotara

October 30, 2024

Modern marketing tech allows loyalty brands to maximize customer engagement and increase customer lifetime value through flexible point earning.

Fueled by customer demand for more versatile and seamless rewards experiences, loyalty programs are evolving beyond traditional, static awards structures. Today’s consumers can earn and redeem points across a wide range of brands and transactions thanks to marketing technology that enables flexible point earning and delivers personalized, dynamic engagement opportunities. For marketers, embracing this flexibility is key to a successful loyalty strategy and is central to the goal of increasing customer lifetime value (CLV).

A great example of a flexible loyalty structure is Delta Air Lines’ SkyMiles program. Through its brand partnerships, members not only earn miles through flight bookings but also through daily transactions like topping up their Starbucks Rewards account or taking a Lyft ride. This model ensures continuous engagement with all three brands. For travel loyalty programs in particular, the ability to earn rewards on everyday purchases is seen as highly desirable — almost half of the respondents in arrivia’s 2024 Travel Loyalty Outlook report say they prefer to earn points on daily transactions. By offering travel loyalty members the ability to earn and redeem points outside of the strict travel buying lifecycle, these brands create additional value that stays top of mind as their members navigate their daily lives.

While brand synergies and cross-promotions aren’t new, they have become more sophisticated with the evolution of marketing technology (MarTech). Take the integration between Delta and Lyft, which allows customers to accumulate miles for both airport rides and non-travel-related trips. With real-time data tracking and app integration, Lyft automatically transfers data to SkyMiles, ensuring that customers’ miles are recorded instantly after a ride, resulting in greater customer satisfaction and enhancing loyalty through convenience.

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Omnichannel Loyalty and Real-Time Optimization

The integration of marketing technology (MarTech) has been pivotal in transforming traditional loyalty programs into dynamic, omnichannel platforms that align with the needs of modern consumers. With these solutions, brands can seamlessly connect loyalty programs across mobile apps, websites, social media, and physical stores, ensuring customers can earn and redeem points wherever they engage. This omnichannel approach is critical to eliminating friction in the points-earning process and encouraging repeat interactions.

MarTech also empowers brands to test and optimize loyalty strategies in real time, allowing marketers to experiment with different point-earning structures and promotions to maximize profitability. For instance, brands might increase point accrual during peak shopping seasons, reward social media engagement, or offer double points for in-store visits. Another example could be airlines that increase the number of points customers earn for booking flights during off-peak travel seasons to encourage more bookings and balance demand.

Personalization at Scale

One of the most significant benefits of MarTech is the ability to personalize loyalty experiences. While personalization sometimes feels like the buzzword du jour, study after study shows that consumers are more likely to engage with brands that provide them with relevant content. Through data analysis, brands can offer tailored rewards based on individual behaviors and preferences. For example, a frequent traveler may receive bonus points for flight bookings, while someone who enjoys dining out weekly could be rewarded with restaurant discounts. AI-driven platforms take personalization even further by timing offers to coincide with when they are most useful to the customer, thereby deepening engagement, boosting redemption rates and strengthening brand loyalty.

Moreover, AI can help loyalty brands segment their customers more efficiently, identifying high-value members who are most likely to engage with specific promotions or rewards. For example, if AI algorithms detect that a customer is close to a point redemption threshold, it could automatically trigger an offer to encourage an additional purchase to reach that goal. These small nudges can have a significant impact on customer engagement and CLV in both the short and long terms.

Boosting Customer Lifetime Value through Flexible Rewards

A key benefit of flexible point earning is its ability to boost customer lifetime value (CLV). When customers can earn and redeem points in ways that suit their lifestyles, they are more likely to engage with the program regularly and make repeat purchases. By offering more opportunities to earn points, brands can increase customer spending, which improves overall program profitability.

Additionally, flexible rewards allow brands to extend their reach into previously untapped markets. For example, a Starbucks Rewards member who links their account to Delta SkyMiles might not have immediate travel plans, but their everyday coffee purchases will help accumulate points for future trips. This kind of integration not only strengthens long-term relationships with customers but also allows brands to capture new audiences, such as younger consumers or those who are not yet frequent travelers.

For marketing professionals, the future of loyalty lies in offering flexible, personalized experiences that resonate with modern consumers. By embracing flexible point-earning structures and leveraging the power of MarTech and AI, brands can create loyalty programs that are more engaging and profitable.

Loyalty programs that align with customers’ lifestyles—whether it’s earning miles for everyday purchases, redeeming points across different industries, or receiving personalized, timely offers—will see the most success in driving customer engagement and increasing CLV. As brands continue to integrate flexible point-earning structures and refine their loyalty strategies, the result will be more resilient programs that cater to the ever-changing needs of a dynamic market.