Rethinking customer loyalty programs for an omnichannel reality

As the competitive landscape across industries becomes more cluttered, the cost of acquiring new customers continues to skyrocket. As a result, customer loyalty initiatives have never been more vital to the long-term health of a brand. However, in the face of digital channel fragmentation and fast-changing consumer expectations, established customer loyalty programs must constantly evolve to maintain relevance and continue to deliver value to members. The benefits of a well-executed loyalty program are well-documented. Research has shown that such programs drive 83% of consumers to make repeat purchases, and three out of four consumers will go so far as to adjust their spending in order to get more benefits out of a loyalty program. However, the bar to achieving the kind of loyalty that drives these results among consumers has never been higher. Success in the modern loyalty landscape requires brands to integrate customer programs into their omnichannel marketing strategies to transform customer engagement across touchpoints and fuel growth. Furthermore, the strongest programs also go the extra step to align with complementary brands to unlock new rewards and experiences for members—an approach that’s effective in both retaining customers as well as acquiring new ones. So, what does this all require from a practical standpoint? Here are some key takeaways of how T-Mobile Advertising Solutions’ loyalty programs approach not only delivering greater value to our customers, but also to our brand partners. An authentic approach to customer loyalty When a brand pledges to deepen its relationship with customers through a loyalty program, it’s a long-term commitment. If there’s one thing we know about customer expectations, it’s that they’re always changing. Where and how people make purchases and engage with brands will continue to evolve, week to week and year to year. Loyalty programs, and the brand leaders who stand behind them, must be fluid enough to pivot and grow with their customers. Established in 2016, T-Mobile Tuesdays rewards customers with weekly perks such as discounts, exclusive deals and free items just for being a customer. The program has become a key differentiator for T-Mobile, offering its users a tangible reminder of the brand’s appreciation each week. Brand partners can work with T-Mobile to be a part of these weekly offers, the value of which is then extended across T-Mobile’s fuller online, retail and rideshare media networks. This past February, T-Mobile launched Magenta Status, a new program intended to give customers the VIP treatment they deserve without their having to pay or do anything extra. Magenta Status includes new one-of-a-kind deals and experiences on nationally loved brands across services used every day, including hotels, rental cars, concerts, movie tickets and more—all in addition to discounts and freebies every week from T-Mobile Tuesdays. Additionally, during the rollout of Magenta Status, T-Mobile also enhanced its approach to customer loyalty by consolidating all customer interactions into its T-Life app. This app unifies T-Mobile’s offerings into one seamless digital experience. With the T-Life app, customers can take control of their relationship with T-Mobile across all touchpoints, making it easier to access exclusive perks and manage their services without the friction of multiple apps or customer service channels. All of these enhancements were designed to demonstrate our commitment to treating customers like family, not just numbers. At the same time, this focus on customer loyalty and exclusive benefits enables us to deepen our partnerships in a way that unlocks new benefits for customers and brands alike. Harnessing reward programs and omnichannel addressability In developing and enhancing loyalty programs, brands must also acknowledge that the digital ecosystem is precisely that: an ecosystem. The platforms, services and brands that surround consumers are inherently interconnected. How can they not be? They all revolve around serving the same individuals. To that end, a brand’s loyalty program cannot exist solely within its own walls. Importantly, at T-Mobile, none of our partnerships exist in a vacuum; every relationship we forge is done so with today’s omnichannel reality in mind. Through our myriad solutions—whether on a mobile device, in our stores or throughout a consumer’s day across digital out-of-home (DOOH) and video—we can help drive full-funnel impact, from awareness to consideration to purchase intent. We are building the future of customer loyalty not only through our own programs but through our relationships with partner brands and sponsors. Brands that partner with us via our T-Mobile Tuesdays and other offerings benefit from the halo of our customers’ loyalty and are able to unlock deeper levels of loyalty within their own programs. For example, in addition to building a unified digital experience, T-Mobile extended its omnichannel integrations with offerings like the launch of its retail media network within its own stores and continued expansion of rideshare-based screens. These networks feature dynamic ad opportunities where brands can further reach customers with engaging video content and extend their campaign efforts. By connecting all touchpoints—mobile, digital and physical—T-Mobile offers a highly integrated loyalty experience that can drive deeper customer engagement and brand partnerships. Customer loyalty is more than just a marketing tool—it’s a vital asset in maintaining long-term brand health. As we here at T-Mobile can attest, a well-designed loyalty program can unify brand experiences, enhance customer satisfaction and even extend the value of external partnerships. In this omnichannel reality, the key to success lies in data integration, personalization and convenience, ensuring that every customer interaction feels like a reward in itself. About T-Mobile Advertising Solutions Advertising Solutions is T-Mobile’s fast-growing advertising technology business. It leverages high-quality mobile data from the T-Mobile network, enabling advertisers to build audience segments based on app ownership and usage insights. T-Mobile is bringing innovative solutions to the advertising space, making more channels and better data accessible to advertisers of all kinds. For more information, visit www.t-mobile.com/advertising-solutions.

Rethinking customer loyalty programs for an omnichannel reality

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