In times of economic uncertainty, customers often adjust their spending habits, prioritizing value and financial caution. For brands, this presents a unique challenge: how can you keep price-conscious customers engaged without relying solely on discounts? Kobie’s VP of Strategic Consulting, Chris Barnett, recently weighed in with Loyalty360 on this topic and we’re here to highlight the key takeaways of the conversation.
Given the economic environment, how should brands balance offering value through their loyalty program without relying heavily on discounts?
Building loyalty in tough times isn’t about cutting prices; it’s about making customers feel like VIPs. Create exclusive experiences and offer personalized attention that makes them feel valued and connected. Instead of discounts, focus on non-monetary perks like early access to new products or immersive brand experiences. Partner with complementary brands to offer compelling rewards at lower costs, fostering a sense of exclusive value without compromising profitability.
What advice do you give to brands to ensure their loyalty program remains relevant and valuable to customers, even as customers’ financial priorities change?
When budgets tighten, your loyalty program needs to be a lifeline, not a luxury.
- Personalize it – use your data to offer rewards that actually matter to each customer.
- Think utility – solve their problems, make life easier and more convenient.
- Be proactive – remind them of available points for rewards or timely, relevant offers. Make your program smarter, not cheaper.
How should brands track the effectiveness of non-monetary rewards in maintaining customer engagement and loyalty?
To measure non-monetary reward impacts, focus on key behavioral metrics beyond purchase frequency. Monitor engagement levels through app usage or program perks. Track how non-monetary perk redemption rates correlate with lifetime value (LTV) or retention rates. Leverage targeted surveys and sentiment analysis to gauge emotional connection, which often predicts long-term loyalty better than transactional data.
How can brands communicate the value of their loyalty programs to customers who are more price-conscious during these times?
With price-conscious customers, it’s crucial to emphasize the tangible benefits of your program beyond discounts. Highlight how it helps stretch their dollars further. Show them the cumulative benefits – not just the immediate savings, but the long-term value they’re building. Make it clear how your program fits their daily life, adding genuine value when every penny counts.
How important is building emotional loyalty during times of economic uncertainty, and how can brands achieve this?
Building emotional loyalty is critical during economic downturns. When wallets are tight, customers stick with brands they feel genuinely connected to, not just the cheapest option. To foster this connection, create moments that resonate – from highly personalized experiences to gratifying and accessible micro-burn rewards.
Loyalty programs are the key to building lasting relationships and driving brand value, even when financial priorities shift. Reach out to get connected with a loyalty expert today.
Written by: Chris Barnett
As VP of Strategic Consulting at Kobie, Chris Barnett leads loyalty program and CX design engagements for a portfolio of clients and leads Strategy on the Retail vertical as well as the Loyalty Health Center of Excellence.
