Customer loyalty programs are at a point of change. Too often brands are rewarding transactions while overlooking the emotional connections that truly drive growth and real business impact. In a special webinar event, Amanda McMahan, Insights Director at CMB (ITA Group’s research group), and Chris Jones, Senior Vice President of Engagement Solutions, explored how brands may be underestimating opportunities to build stronger loyalty. Backed by exclusive new research, they shared thoughtful tips for transforming loyalty programs into engines for stronger spend, deeper engagement and lasting customer advocacy.
Here are just three of the insights brands can’t afford to miss.
1. Emotional connection is a multiplier for customer loyalty programs
New research from ITA Group and CMB shows that what most customers value in a loyalty program often isn’t what brands actually deliver. Emotional connection goes beyond transactional rewards and is a key driver of increased visits, higher spend and overall customer advocacy.
This expanded understanding suggests that loyalty programs must move past simple transactions and focus on building authentic emotional ties. Customers who feel emotionally connected to a program are more likely to become advocates, promoting the program and the brand to others.
“I think as marketers and people who run loyalty programs and people in professional services who work with loyalty programs, this is an idea that's always been kind of in our gut. But what we're excited about in this research is that we can take it beyond a feeling or a sentiment that we have and really turn it into a proven quantifiable difference that you can include in your loyalty program,” Chris shared.
Related: How psychological benefits affect successful customer loyalty programs
2. Value and ease remain the foundation of customer advocacy
The discussion in this webinar builds on findings from the first portion of our loyalty study, Transforming customer loyalty programs. Previous research revealed that value and ease are central to shaping perceptions of loyalty programs and, ultimately, to driving advocacy.
Customers who advocate for a program are 6x more likely to visit the brand, spend more and give greater wallet share. This level of advocacy is built on perceived benefit. And we learned that perceived benefit comes from two key associations:
- Value: Is the loyalty program worth my time?
- Ease: Is the loyalty program simple to participate in and engage with?
As Chris noted in the webinar, value is 3x more impactful than ease, making it the single biggest driver of program perception.
“Remember that when we say value, often you think of the discounts and offers, which are an important part of the equation. But we're also talking about information you provide. Access, exclusivity, recognition and, probably most importantly, appreciation of the people in your program. And I think we're learning that the key is to find the right mix for all of those for your brand in your program,” he said.
Related: How to build customer loyalty by adding more value to your customer loyalty program
3. A new formula for building emotional connection within your customer loyalty program
While value and ease matter, the new findings reveal a second formula that brands can use to deepen emotional connection. Programs that foster motivation and enthusiasm while ensuring customers feel genuinely appreciated can elevate loyalty into advocacy.
When loyalty program members feel motivated, engaged and valued for their participation, they develop a lasting sense of connection. That emotional bond turns ordinary loyalty program members into brand advocates, an essential driver of long-term growth for brands.
“We know that loyalty grows when customers see themselves in a brand and its community of members. Without that connection and relevance, programs lose personal associations and that membership pride which fuels high customer engagement,” Amanda said.
Emotional connection is no longer a “nice to have” feature in loyalty programs. As Amanda and Chris both discussed, it’s essential for brands that want to unlock the new frontier of customer loyalty. While this webinar offered a first look at the latest findings, the full research study is coming soon, with even deeper insights for brands hoping to evolve their loyalty strategies for the modern market.
If you missed the webinar, you can watch the full replay here and explore even deeper guidance for brands ready to elevate loyalty. Or get in touch with our team to further discuss our study findings by clicking here.