Loyalty 360 had the opportunity to hear from Jen Hunter, Senior Solutions Manager for Maritz Loyalty & Motivation, to learn more about how a Deal of the Day offering and mobile app can be an engaging and useful addition to a loyalty program strategy.
L360: The traditional Deal of the Day offering, although loved by consumers, has taken some heat from the loyalty industry. How do you see Deal of the Day offers developing to better drive engagement and create loyalty?
Hunter: It’s very telling that although consumers love it, some in the loyalty industry are firmly opposed. What a perfect illustration of the disconnect we see between what consumers value and much of the traditional loyalty program thinking! Isn’t getting your customers to think about you every day a strong contributor to engagement? If Deal of the Day can do that, and show customers you’re serving up the things they want, those are great steps toward achieving loyalty on your customers’ terms. Deal of the Day also drives engagement through game dynamics, found in the time sensitivity of the deal and limited quantities available. The countdown clock and limited quantity deals add a gaming dimension, which we know garners engagement for participants. In addition, the strategy of the Deal of the Day includes an element of surprise. Each daily deal is different and can come from a different category of products, thereby encouraging the participant to check the site daily for items they are truly interested in redeeming at a discounted price. The ability for a participant to also see their wish list from the awards redemption site adds another element of engagement to the program. It’s not just about the Deal of the Day for total engagement – it offers the medium for a participant to reengage with their awards program on a broader level.
L360: Why is this a great add on to a successful loyalty strategy? How does the Maritz Deal of the Day strategy improve upon the traditional Deal of the Day tactic?
Hunter: Many loyalty programs are stale. Deal of the Day shakes things up and answers the desire of the program members who just love the feeling of getting a good deal. It won’t be attractive to 100 percent of a loyalty programs’ members, but to the ones who care about deals, this will make them feel their need has been answered.
The mobile app component of the Deal of the Day is important for engagement in that it brings the redemption site to a user’s device. We know that smartphones are the accessory that most people don’t leave home without, and the app makes the redemption easy for individuals on the go. Participants no longer need to actively and intentionally sit down to a computer to check out a Deal of the Day. Mobile apps are the new expected norm, and we can improve engagement and overall loyalty back to a client by making the app accessible, easy to use and enticing. It’s not a chore to check in on the daily deal when the app is always with the participant.
L360: How does the Deal of the Day mobile app increase customer engagement? Does it engender loyalty? If so, to whom: the loyalty program sponsor, the deal-sponsoring brand, or both?
Hunter: The increase in engagement is in two areas: First, it increases the frequency of interaction with your brand – those interested in deals will be looking at the offer daily and thinking about your program and brand. Second, it increases the good will customers who care about deals feel toward your brand since you’re serving up something important to them specifically. Certainly, the brand sponsoring the deal will have some good will spread over them as well, but to the customer, the offer is coming from you, the loyalty program sponsor, and that’s what you want.
L360: What types of programs make a good fit for implementing the Deal of the Day app into their program strategy?
Hunter: Programs that have been operating for a long time and are seeing a decline in redemptions and engagement, and programs where a large segment of customers are especially deal conscious would be prime targets for this tool. Also, with the availability as a mobile app, programs where the brand is seen as very progressive, or where many of the consumers are early adopters of new technology would have strong reasons to use this.
Read the recent press release from Maritz.