Our team recently participated in The BIG Handshake (TBH) in Amsterdam, a must-attend event for loyalty experts and retail professionals. After experiencing the event last year, we knew it was an incredible opportunity and a collaborative space for learning and growth, so we were excited to return. This year, we also gained fresh perspectives and connected with top experts in loyalty strategy and customer engagement. Now back in the office, we’re energized and ready to implement new ideas that will elevate our approach to loyalty.
Here are our key takeaways:
The “Big L” of Loyalty: Going Beyond Traditional Loyalty Programs
In the loyalty industry, we often view customer loyalty with a 'little l'—primarily focusing on programs that offer rewards, points, and discounts. However, industry leaders at TBH emphasized the importance of loyalty with a 'Big L': the entire brand experience that shapes a customer's relationship with a brand. For today’s customers, loyalty isn’t just about points or perks; it’s about feeling valued and connected at every interaction.This concept resonates with us, especially with our retail heritage, as it broadens how we think about fostering loyalty and building genuine brand connections.
Aligning Executive Boards with Long-Term Loyalty Goals
Building long-term customer loyalty requires a commitment from the entire executive board. Yet, in many organizations, only the CEO andCMO are invested in loyalty beyond immediate KPIs, with most C-suite leaders focusing on short-term results. At TBH, attendees talked about how this lack of support can weaken the effectiveness of loyalty programs. Our takeaway? For loyalty programs to truly succeed, they must gain support from all key stakeholders, aligning the organization’s vision and operations toward fostering long-term customer engagement and loyalty.
Balancing Fundamentals with Innovation
Creating exceptional customer loyalty depends on a strong foundation in the basics: clear communication, straightforward benefits, and ongoing engagement. At TBH, leaders emphasized that while fundamentals are crucial, innovation is equally essential. Integrating AI, for example, can help personalize experiences and streamline operations, enhancing how customers interact with and feel about a brand. For us, striking the right balance between loyalty basics and innovative tools will be key to staying relevant and responsive to evolving customer needs.
The Power of Customer Psychology in Loyalty
Understanding the psychology behind customer loyalty wasa particularly fascinating topic at TBH. Loyalty strategies are rooted in behavioral science, and marketers can greatly benefit from exploring these insights when crafting campaigns. For instance, Veblenian signaling—a concept where brands display their strength by offering exclusive perks rather than discounts—caught our attention. This tactic allows brands to express their value while avoiding the perception of over-discounting, which can harm brand equity. Recognizing and applying these psychological insights enables us to build loyalty programs that resonate deeply with customers.
Attending The BIG Handshake was a valuable experience, providing the Lobyco team with inspiration and ideas to enhance our loyalty initiatives. We’re excited to incorporate these strategies into ourapproach, continuing to make loyalty a central focus as we strengthen connections with our customers.
