In today’s competitive market, brand loyalty is no longer driven solely by product quality and price. Consumers seek emotional connections with brands that share their values. This trend presents a unique opportunity: values-driven loyalty programs.
The rise of values-driven loyalty is transforming customer-to-business relationships. Learn how to weave your brand’s beliefs into your strategy and create deeper connections with your customers.
The Power of Shared Values
Kobie’s 2024 Consumer Research Study shows that sustainability, diversity, equity, and inclusion are key drivers of brand loyalty. When a brand authentically embodies its values, it fosters emotional connections that lead to loyal customers.
Loyalty programs are a great tool to connect with customers on a deeper level. They can be more than just points and discounts; they can be a platform to champion your brand’s
values and allow customers to participate in causes they care about.
Values-Driven Loyalty in Action
- REI Co-op: This program goes beyond traditional benefits by offering members opportunities to support environmental causes and connect with their community.
- Target Circle: Members can use points to support local and national charities, aligning with Target’s commitment to giving back.
- IKEA Family: Their buy-back program promotes sustainability by encouraging furniture recycling.
- J.Crew x thredUP: This partnership allows customers to shop for pre-owned J.Crew clothing and promotes a circular fashion model.
These are just a few examples. Many values can be woven into loyalty programs, from wellness to social justice. The key is to identify your brand’s core values and find ways to integrate them authentically.
Authenticity is Key
The most critical element of a values-driven program is authenticity. Consumers can spot inauthenticity from a mile away. It creates doubt and undermines trust. Ensure your program aligns with your brand’s actions and overall mission.
Embrace Transparency, Not All Customers Will Agree
Taking a stand on social issues can be tricky. While some customers may not agree with your stance, those who do will develop stronger emotional connections. Transparency is key. Be prepared to explain your values and the causes you support.
Here’s an example: Bud Light’s campaign involving a transgender influencer received backlash from some customers. However, others likely felt a stronger connection to the brand because of its commitment to inclusivity.
Do’s and Don’ts for Values-Driven Loyalty
- Do: Align your brand’s values with program benefits.
- Do: Weave your values into your loyalty program offerings.
- Do: Track program impact through relevant metrics.
- Do: Be authentic. Inauthenticity is a program killer.
- Don’t: Create an inauthentic program that doesn’t reflect your brand.
- Don’t: Stop at sustainability. Explore all values relevant to your brand and customers.
Final Thoughts
Values-driven loyalty programs are a win-win. Brands gain awareness for their causes, programs benefit from deeper engagement, and customers feel a stronger emotional connection. Start small and focus on authenticity. Every step towards genuine values-driven loyalty strengthens your customer relationships.
Related Reads!
In the Feels: Unveiling the Intrinsic Value of Emotional Loyalty
Loyalty Personalization 101: Best of Loyalty (just for you)
Written by: Julie Gerola
As Kobie’s VP of Consulting, Julie is a data-driven marketing leader, passionate about leveraging customer insights for sustainable business growth. She has deep experience advising leading brands, focusing on how to harness the power of loyalty data to create hyper-personalized experiences and drive customer lifetime value.
