Loyalty programmes have long been a marketing tool used to reward customers. A lot has actually been said about the advantages, or disadvantages, of such programmes, but it seems that the accruing benefits are now widely recognised by businesses.

If we take a glance at the history of loyalty offers, the beginning could be traced to the late 18th century, when a US merchant started giving out copper tokens collected by customers and which could be exchanged for items in the store. In the 19th century, this marketing tool gained some momentum leading to the appearance of the Blue Stamp Trading System, with stamps redeemed for store products.

In more modern times, loyalty programmes were first adopted by the airline industry in the US. American Airlines announced the famous AAdvantage, the first frequent flyer reward and which marked a real evolution of the concept. The programme was copied by other airliners within the US and then outside, before it spilt over to other industries, mainly hospitality and retail.

Millions of people are currently members of loyalty programmes’ worldwide, although the discrepancy between proponents and opponents still persists. Many businesses have been reluctant adopters as they don’t see any value in them, but are forced to ride the wave because their competitors had such programmes. Some companies, however, were quick to enter this marketing sphere and just as quick to make exits. In general, businesses have learnt to have a favourable attitude.

The tech revolution has been a main driver in the evolution of loyalty programmes in recent years. It has enabled businesses to easily store and analyse data of millions of consumers thanks to the evolution of IT software and hardware.

In the era of m-commerce, e-commerce and the digital consumer, there might be a need for a new thinking about loyalty programmes. Big data, the cloud, and the ability to connect and communicate with consumers and trace their behaviour around the clock might very well affect or lead to a major evolution of the concept.

Our region was a bit late in adopting loyalty programmes but obviously these are now used across several industries. No research has been conducted to evaluate the number of subscribers of these programmes or their benefits.

I think it’s high time we spoke and listened to customers. Current loyalty programmes are imposed on consumers and there might be a need to engage consumers in designing new programmes.

I’ve been concerned that when loyalty programmes succeed, they do so to keep consumers loyal to the programme themselves and not to the brands behind these. That’s why a number of members are shared among various competing offerings.

In this case, consumers start comparing the benefits of each programme to decide the buying instead of being pushed to buy by the emotional rapport they build with a brand. The risk here is that loyalty to a programme is short-lived and can cease anytime, while loyalty to a brand has the potential to last for long unless the brand damages any of the elements of the loyalty mix, which include quality of the product, price, customer service and, I may add, communication with customers.

Undoubtedly, consumers are looking for rewards, but they also expect loyalty programmes to offer other value-added services. A fast-lane cashiering service and reserved car parking spaces could be other incentives members would expect as it helps optimising their shopping experience and gives them that privilege non-members don’t have.

Also, consumers are looking for co-branded loyalty programmes where an offering covers the benefits of several brands across various industries. A co-branded programme, for example can impact different aspects of members’ lifestyle, from fashion to sports, wellness, hospitality, travel, gastronomy, arts, etc. This way, the programme will enhance the lifestyle of members and consolidate their loyalty.

I would, therefore, tend to think loyalty programmes that are most likely to succeed in the future are those that will manage to shift consumers from being loyal to the programme to being loyal to the brand. These are the ones that will have an integrated view of the loyalty mix, where an offering is considered a contributor to customers’ loyalty to the brand and should receive an importance equal to the other elements in the mix.

— The writer is the CEO of Emax.