Anticipation as a Loyalty Driver

Loyalty programs have long used aspiration as a driver to spur member action. Points programs promise magnificent rewards for taking action today and staying true to one brand. Digital channels have been created to make earning and redemption easier. Distribution costs have been driven down leading to richer offers. The practice has become so widespread, even the fictional Shoe Circus! has a platinum elite tier. Anticipation has largely been relegated to future rewards. But is there another type of anticipation better aligned with digital strategies currently being overlooked?

The Web 2.0 movement has created a new means of communicating with customers. The magical recipe, repeated ad nauseum, is create conversation and drive engagement. While there exist a wealth of solutions (social networking, micro/blogging, widgets, bookmarking, video, syndication), there have been few answers. The simple fact that a tool exists provides no guarantee of its effectiveness. Truly, the struggle for most marketing departments today has been execution. Creating a Facebook account or Blog is relatively simple. Getting members there (a necessity if the goal is to create conversation and engagement) remains largely a mystery.

Ogilvy's Jan Leth has created one process - Dada, Data, Alpha, Beta.

• Dada - Reinvent, mashup, collaborate, and think laterally.
• Data - Create value through relevance.
• Alpha - Engage the alpha dogs and those that will act as evangelists.
• Beta - Listen, learn, and respond for the duration of the campaign.
  

These are all great points and provide an effective and understandable roadmap to solid execution. Yet, it still does not point to any means to create conversation and create engagement.

Helge Tenno points to new research in the field of Neuroscience. This research indicates that anticipation may be more critical than previously thought. Combined with Jan's digital strategy, a focus on creating anticipation through Dada, Data, Alpha, Beta may begin to bridge the gap between execution and action.

Google, one of the most successful digital companies to date, is a master of anticipation. The constant addition of services and applications through Google creates loyalty without rich incentives. The incentive is innovation. Anticipation of what's next keeps users engaged and communicating. Google has painted itself as a company that consistently pushes the envelope. As a reward, they have attracted the alpha dogs and evangelists that help them build their services even further.

Perhaps a beta platform that delivers small bits of innovation over time can build loyalty as effective as incentives that promise aspiration. While incentives offer large payoffs after years of service, innovation offers small payoffs on a regular basis.

Regardless of whether users are being offered incentives or innovation, anticipation can be seen to drive loyalty. When SPG rolled out its new redemption opportunity for flights, one FlyerTalk member pointed out:

I applaud SPG on the new flights program. It's yet another option which is always good. Kudos to them for engaging FlyerTalkers too. I'm guessing the average FlyerTalker is too savvy to use their Starpoints on SPG Flights when better value can be had on free nights, but SPG made the program for everyone not just us.

I'm guessing this is just the start of more innovations at SPG...