White Paper

January 2, 2018, 11:00 AM EST

Defining Loyalty for Your Brand

Defining Loyalty for Your Brand

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Author

Synchrony

Contributors

Megan DeCosta
Vice President, Loyalty, Client Strategy and Engagement
 
Katie Hughes
Vice President, Loyalty Strategy
 
Sue Yasav
Vice President, Thought Leadership

Abstract:

Loyalty is the result of timely and relevant engagement with consumers that drives them to become advocates for a brand and to consciously select one brand over another.
Loyalty is more than just discounts and rewards points. Customers are loyal to brands because of quality products, experiences, and benefits. For a brand to build loyalty, it needs to create the best experiences for its customers. So, before a brand launches a new loyalty program or modifies an existing one, it needs to have a clear understanding of what would drive a customer to be loyal to its brand.
 
“Customers have unique aspirations, and every relationship is different. Our job is to create an experience that shows we understand our customers’ needs, we care about them, and we will exceed their expectations. It’s important to form a bond that will create a unique relationship and ultimately drive loyalty to your brand.”
 
Bart Schaller, 
CMO Synchrony Financial

Table of Contents

Do you know what is important to your customers? Making unfounded assumptions about customers can lead a loyalty program in the wrong direction, costing money and wasting time. The best way to truly understand what customers want is to ask them directly. 
 
In 2016, Synchrony Financial conducted an Affluent Study that showed that:
  • 84% of customers feel quality is more important than brand
  • 71% of shoppers select retailers for their excellent customer service
By identifying what delights customers and prospects, brands can create solutions that better align with their customers’ wants and drive more of the brand’s desired behaviors.
 
Drivers of a successful loyalty program for a brand:
• Repeat patronage
• Increased sales/share of wallet
• Purchase of ancillary services
• Non-price based differentiator
• Insights from consumer data
 
Drivers of a successful loyalty program for a customer:
• Recognition and reward for their patronage/loyalty
• Assurance that they are getting the optimal deal 
• VIP and insider services
• Personalized offers
 
Reward the actions that drive incremental results. Find the balance between meeting customer needs and managing ROI.
Do you know what is important to your customers? Making unfounded assumptions about customers can lead a loyalty program in the wrong direction, costing money and wasting time. The best way to truly understand what customers want is to ask them directly. 
 
In 2016, Synchrony Financial conducted an Affluent Study that showed that:
  • 84% of customers feel quality is more important than brand
  • 71% of shoppers select retailers for their excellent customer service
By identifying what delights customers and prospects, brands can create solutions that better align with their customers’ wants and drive more of the brand’s desired behaviors.
 
Drivers of a successful loyalty program for a brand:
• Repeat patronage
• Increased sales/share of wallet
• Purchase of ancillary services
• Non-price based differentiator
• Insights from consumer data
 
Drivers of a successful loyalty program for a customer:
• Recognition and reward for their patronage/loyalty
• Assurance that they are getting the optimal deal 
• VIP and insider services
• Personalized offers
 
Reward the actions that drive incremental results. Find the balance between meeting customer needs and managing ROI.
Do you know what is important to your customers? Making unfounded assumptions about customers can lead a loyalty program in the wrong direction, costing money and wasting time. The best way to truly understand what customers want is to ask them directly. 
 
In 2016, Synchrony Financial conducted an Affluent Study that showed that:
  • 84% of customers feel quality is more important than brand
  • 71% of shoppers select retailers for their excellent customer service
By identifying what delights customers and prospects, brands can create solutions that better align with their customers’ wants and drive more of the brand’s desired behaviors.
 
Drivers of a successful loyalty program for a brand:
• Repeat patronage
• Increased sales/share of wallet
• Purchase of ancillary services
• Non-price based differentiator
• Insights from consumer data
 
Drivers of a successful loyalty program for a customer:
• Recognition and reward for their patronage/loyalty
• Assurance that they are getting the optimal deal 
• VIP and insider services
• Personalized offers
 
Reward the actions that drive incremental results. Find the balance between meeting customer needs and managing ROI.
Do you know what is important to your customers? Making unfounded assumptions about customers can lead a loyalty program in the wrong direction, costing money and wasting time. The best way to truly understand what customers want is to ask them directly. 
 
In 2016, Synchrony Financial conducted an Affluent Study that showed that:
  • 84% of customers feel quality is more important than brand
  • 71% of shoppers select retailers for their excellent customer service
By identifying what delights customers and prospects, brands can create solutions that better align with their customers’ wants and drive more of the brand’s desired behaviors.
 
Drivers of a successful loyalty program for a brand:
• Repeat patronage
• Increased sales/share of wallet
• Purchase of ancillary services
• Non-price based differentiator
• Insights from consumer data
 
Drivers of a successful loyalty program for a customer:
• Recognition and reward for their patronage/loyalty
• Assurance that they are getting the optimal deal 
• VIP and insider services
• Personalized offers
 
Reward the actions that drive incremental results. Find the balance between meeting customer needs and managing ROI.
Do you know what is important to your customers? Making unfounded assumptions about customers can lead a loyalty program in the wrong direction, costing money and wasting time. The best way to truly understand what customers want is to ask them directly. 
 
In 2016, Synchrony Financial conducted an Affluent Study that showed that:
  • 84% of customers feel quality is more important than brand
  • 71% of shoppers select retailers for their excellent customer service
By identifying what delights customers and prospects, brands can create solutions that better align with their customers’ wants and drive more of the brand’s desired behaviors.
 
Drivers of a successful loyalty program for a brand:
• Repeat patronage
• Increased sales/share of wallet
• Purchase of ancillary services
• Non-price based differentiator
• Insights from consumer data
 
Drivers of a successful loyalty program for a customer:
• Recognition and reward for their patronage/loyalty
• Assurance that they are getting the optimal deal 
• VIP and insider services
• Personalized offers
 
Reward the actions that drive incremental results. Find the balance between meeting customer needs and managing ROI.
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1. Visa / Bond Loyalty Survey. Market Insights Fall 2017.
2. Synchrony Financial 2017 Digital Study
 
Focus on what really matters.
Synchrony Financial is one of the premier consumer financial services companies in the United States. Our roots in consumer finance trace back to 1932, and today we are the largest provider of private label credit cards in the United States, based on purchase volume and receivables.
 
Contact your Synchrony Financial representative or visit us at SynchronyFinancial.com or SynchronyBusiness.com to discover how we can help you grow your business.
Contributors: Megan DeCosta—Vice President, Loyalty, Client Strategy and Engagement; Katie Hughes—Vice President, Loyalty Strategy; Sue Yasav—Vice President, Thought Leadership
This content is subject to change without notice and offered for informational use only. You are urged to consult with your individual attorney, financial or other advisors with respect to any information presented. Nothing contained herein shall be construed as legal advice or a legal opinion.
 
© 2018 Synchrony Financial. All rights reserved. No reuse without prior written consent from Synchrony