Many brands have launched loyalty programs in the last 5-10 years to address the risk of stagnation. However, they are but are struggling with three key things.
The first of these is that the bulk of their members are inactive. Often, when campaigns are first launched there is a flurry of activity and there are similar patterns when new members join. However, this is hard to sustain.
The second issue is with the relative value of the schemes and the benefits to members. It is often the accrued benefits for members have low redemption rates.
The third and final issue is that the overall program costs are relatively high and the costs ae generally growing. This is due to the ongoing management complexities of the loyalty technology used by the brand, which is invariably bespoke in nature.
So, how can brands combat this? Rob Fagnani, co-founder of Formation provides Digital Journal with some advice.
Fagnani foresees a future based on digital ledger technology. This centers on blockchain, a technology that can be employed on advertising networks to cut out the middleman and track who clicks and interacts with the advertisement or promotion. Continue reading: https://www.digitaljournal.com/tech-science/how-blockchain-will-affect-the-future-of-brands-marketing-tech-stack/article
The first of these is that the bulk of their members are inactive. Often, when campaigns are first launched there is a flurry of activity and there are similar patterns when new members join. However, this is hard to sustain.
The second issue is with the relative value of the schemes and the benefits to members. It is often the accrued benefits for members have low redemption rates.
The third and final issue is that the overall program costs are relatively high and the costs ae generally growing. This is due to the ongoing management complexities of the loyalty technology used by the brand, which is invariably bespoke in nature.
So, how can brands combat this? Rob Fagnani, co-founder of Formation provides Digital Journal with some advice.
Fagnani foresees a future based on digital ledger technology. This centers on blockchain, a technology that can be employed on advertising networks to cut out the middleman and track who clicks and interacts with the advertisement or promotion. Continue reading: https://www.digitaljournal.com/tech-science/how-blockchain-will-affect-the-future-of-brands-marketing-tech-stack/article
