The key to a successful loyalty program exists not in a continuous stream of discount offers, but in the cultivation of long-term engagement and satisfaction. Today’s consumers want to feel attended to and cared for by the brands and retailers they support. In return, they are willing to spend more. Consider this: customers with an emotional connection to a brand have a 306% higher lifetime value than those without! Loyalty programs are nothing new, but tiered rewards provide a more engaging, gamified experience. 

When designing a tiered loyalty program, consider how you can meet the “hierarchy of [consumer] needs”:

• Physiological needs—Provide basic, easy, no-fuss benefits through a program with a “ladder” to climb.
• Safety needs—Guarantee privacy and data safety; allow for opt-in correspondence, customization, and opt-outs. 
• Social needs—Fulfill a social need via recognition with special offers unavailable to basic members.
• Esteem needs—Provide insider status to special sales events, new product launches, and exclusive services.
• Self-actualization needs—Deliver a truly customized program with individualized services and one-on-one attention.

Once the tiers are created, brands should strive to create a feeling of exclusivity with each new tier by offering benefits that differentiate their shoppers from shoppers at other stores. Many loyalty programs offer a basic “free” level, but upcharge for premium benefits at higher levels. Gamification strategies can work in tandem with a tiered loyalty program to solidify shopper engagement, while segmenting audiences delivers a more personalized level of service.  

Purina

Purina’s mobile campaign was designed to drive trial and consideration at Target stores during the busy holiday season. They leveraged proximity marketing to motivate shoppers upon entering the store and digital content to engage with them.

The results of the campaign were: 

• 36% increased brand awareness
• 47% of shoppers cited future intent to buy
• 85% incremental sale increase
• 4:1 campaign ROI 

Kellogg’s

To promote the launch of their new Bakery Delight Crumb Cakes, Kellogg’s ran a mobile campaign that rewarded users with kicks for engaging with branded lookbook content, for scanning the product barcode at-shelf, and for purchasing and uploading their receipt, ultimately earning shoppers a free gift card. 

App marketing results included: 

• 35% conversion rate
• 47% of shoppers were first-time buyers
• 55% lift in future purchase intent
• 5:1 campaign ROI

Claritin

During allergy season, Claritin sought the use of an effective mobile campaign to differentiate themselves from competitors, drive awareness, and increase sales at Walmart stores. They rewarded shoppers for scanning promoted products in-store.

The mobile campaign resulted in great success:

• 28 million+ campaign impressions
• 59% increase of incremental sales
• 4:1 campaign ROI

It’s all too easy to purchase with the click of a button, but in-store shopping is preferred by 82% of Boomers, 49% of Millennials, and 81% of Gen Z. Roughly 75% of shoppers say they “appreciate a well-curated store experience focused on a limited number of products,” and 73% of those surveyed say they use physical stores for product discovery. 

The trend is likely to continue so long as retailers continue to meet the demands of modern consumers with engaging, visually appealing stores that are whimsical, fun, educational, efficient, and share-worthy on social media. Today’s shoppers desire more than commodities; they want experiences, status, and memories.

For retailers, experiential marketing is not so much about the immediate sales bump—though some growth can be expected. Forrester and Adobe assert that “experience-driven” brands grow 19% per year, compared to 13% for ordinary brands. 

The true value of experiential retail resides in providing consumers with feel-good moments, who reward the retailers with their enthusiastic loyalty in return. The same report found that experiential retailers have nearly twice as many repeat buyers than their less-immersive competitors.