Latest news with #consumerengagement
Forbes
11 hours ago
- Business
- Forbes
Capillary And Forrester Execs Foreshadow Future Of Loyalty Marketing
Loyalty marketing is going through a transformation in an era where consumer attention is scarce and brand trust is everything. Jim Sturm, President, North America at Capillary Technologies, believes we're standing at the threshold of a new kind of relationship between brands and consumers—one defined less by transactional rewards and more by emotional engagement and data-driven personalization. According to Forrester's 2024 retail survey, 77% of U.S. online adults agree that they like to engage with loyalty programs even when they're not purchasing. Modern loyalty programs capitalize on this golden opportunity to engage customers beyond the transaction with a diversified set of interactions that are personalized to the member's interests and complement the program's core financial benefits. 'Consumer interest in experiences and live events is rising with trusted brands having permission to help consumers experience more by leveraging loyalty rewards to take in a concert, go see their favorite college or pro sports team and using some of their accrued loyalty perks to pay for that experience,' noted Adam Rossbach, President of TFL. Thai rapper and singer Lisa, from South Korean group Blackpink, performs during the Global Citizen ... More Festival at Central Park in New York City on September 28, 2024. (Photo by Charly TRIBALLEAU / AFP) (Photo by CHARLY TRIBALLEAU/AFP via Getty Images) Capillary Technologies, which recently acquired Kognitiv, continues its strategic ascent toward becoming 'the global leader in consumer experience, loyalty technology and consulting,' says Sturm. 'Our plan was to grow through acquisitions and direct sales. This is our fourth acquisition, and we couldn't be more proud.' The evolution of loyalty programs is stark when framed through Sturm's lens. 'The loyalty industry grew up with things like S&H Green Stamps—my mom would shop, come home with stamps, and I'd paste them in a book. Fill it up, and you'd get a free item,' he recalls with a smile. 'Then airlines and hotels introduced points and tiers. But today, loyalty is about much more than that. It's experiential.' He cites Amazon Prime as a standout example. 'It's a form of a loyalty program. You subscribe not because of points, but because you love the benefits and the experience.' Experiential loyalty, according to Sturm, has become the hallmark of successful programs. 'It's not about 'buy 9, get the 10th free' anymore. It's about whether a brand knows you—your preferences, your behaviors—and can engage you in a way that feels uniquely relevant.' Modern loyalty programs offer a unique opportunity to create personalized and exclusive brand experiences that motivate members to move up the status ladder. In Forrester's most recent Consumer Benchmark Survey, 54% of U.S. online adults who belong to loyalty programs agree that getting special treatment is important to them; 63% say the same about getting special offers that are not available to other customers. How do you replicate the intimacy of the neighborhood butcher—who knew your mom's favorite cut of meat—at enterprise scale? Sturm has a clear answer: 'Knowledge today comes from data.' Capillary's platform uses artificial intelligence and machine learning to personalize engagement. 'If I know Jeff loves the color blue and shops certain designer brands, I can tailor that experience. That's emotional loyalty—when you touch the heart, not just the wallet.' This isn't just theory. Sturm underscores how emotional loyalty leads to more spending and deeper brand love. 'You can incentivize a purchase with a discount, but that's not loyalty—that's a transaction. Real loyalty is when the consumer feels a connection so strong, they keep coming back.' Trust is the currency of modern loyalty programs, especially with younger consumers. 'Younger generations are more willing to share information,' says Sturm. 'But only if they believe the brand will use it to enhance their experience.' He echoes findings from my own Gen Z research: 'If I tell you my preferences, and you use that to deliver real value—yes, I'll share. But if I see abuse or irrelevance, I'll shut it down.' Sturm distills decades of experience into four rules for CMOs and strategists building loyalty ecosystems: Live events offer brands a chance to deliver unforgettable experiences—'the reward side of loyalty,' as Sturm puts it. 'Major credit cards and airlines now offer once-in-a-lifetime event access. It works when it's personalized and relevant.' That's where partnerships like those being explored with Tickets For Less come in. 'Earn-and-burn strategies that include live events? That's different. And it matters,' says Sturm. 'The right events for the right persona can create magic.' As AI reshapes marketing, Sturm remains clear-eyed. 'It's not about the tech, it's about trust. And it's about ensuring your AI is accurate, your data is ethical, and your brand is human at scale.' In closing, Sturm reflects, 'I've been in this business a long time, but I stay because of the impact we can make—helping consumers have better experiences and helping brands build lasting relationships.' That, after all, is the heart of loyalty.
Yahoo
24-05-2025
- Business
- Yahoo
Mastercard's Meyer Talks Retail and Travel Trends
Mastercard Economics Institute Chief Economist Michelle Meyer says retailers are still seeing an engaged consumer and there's no clear evidence yet that tariffs are playing a role in spending on "Bloomberg The Close." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Entrepreneur
23-05-2025
- Entrepreneur
Why Gamification Is the Secret Weapon for Modern Brand Engagement
Gamification turns everyday brand interactions into addictive experiences by tapping into human psychology, but it must be used responsibly. Opinions expressed by Entrepreneur contributors are their own. In an era of dwindling attention spans and relentless digital noise, brands face an uphill battle to capture — and keep — consumer interest. Traditional advertising no longer cuts it; passive engagement is out, and interactive, reward-driven experiences are in. Enter gamification, the strategic use of game-like elements in non-game contexts to drive participation, loyalty and habit formation. At its core, gamification taps into fundamental human psychology — our innate desire for achievement, competition and instant gratification. By leveraging challenges, points, leaderboards and rewards, brands are turning mundane interactions into compelling experiences that keep users coming back. But how exactly does gamification work on the brain, and why is it so effective at deepening brand engagement? The neuroscience of gamification The secret lies in dopamine, the neurotransmitter responsible for motivation, pleasure and reinforcement learning. Every time we achieve a goal — whether completing a level in a game or unlocking a discount — our brain releases dopamine, creating a sense of accomplishment and urging us to repeat the behavior. Gamification exploits this loop by: Providing Clear Goals – Whether it's earning points, unlocking badges, or climbing a leaderboard, structured objectives give users a sense of direction. – Whether it's earning points, unlocking badges, or climbing a leaderboard, structured objectives give users a sense of direction. Offering Instant Feedback – Progress bars, notifications and celebratory animations reinforce effort, keeping users engaged. – Progress bars, notifications and celebratory animations reinforce effort, keeping users engaged. Creating Variable Rewards – Like a slot machine, unpredictable rewards (discounts, exclusive content) trigger compulsive engagement. – Like a slot machine, unpredictable rewards (discounts, exclusive content) trigger compulsive engagement. Fostering Social Competition – Leaderboards and social sharing tap into our drive for status and recognition. When executed well, these mechanics don't just encourage one-time interactions — they cultivate habit loops, where users return without conscious thought, much like checking social media or playing mobile games. Related: Gamification Is Eating The World The role of operant conditioning Gamification is deeply rooted in B.F. Skinner's operant conditioning, which explains how rewards and punishments shape behavior. Brands use: Positive Reinforcement (e.g., Starbucks rewarding stars for purchases) Negative Reinforcement (e.g., Duolingo's streak penalties) Intermittent Rewards (e.g., McDonald's Monopoly's randomized prizes) This conditioning keeps users engaged longer than predictable rewards, as the brain remains in a state of anticipation. From retail giants to fitness apps, companies are integrating gamified elements to boost retention, increase conversions and turn casual users into loyal advocates. Here's how: 1. Starbucks: Loyalty as a game Starbucks' rewards program is a masterclass in gamified retention. Users earn "stars" for purchases, unlock tiers (Green, Gold) and receive personalized challenges ("Buy three lattes this week for bonus stars"). The tiered system leverages loss aversion — once users reach Gold status, they're incentivized to keep spending to maintain perks. The result? Starbucks boasts over 32 million active rewards members in the U.S. alone. Key Takeaway: Tiered rewards create aspirational goals. Personalized challenges increase purchase frequency. 2. Duolingo: Making learning addictive Language-learning app Duolingo thrives on gamification. Streaks punish missed days, XP points quantify progress and animated celebrations reward consistency. The app even uses light punishment mechanics (a broken streak) to guilt users into returning. This approach has helped Duolingo amass over 74 million monthly active users, proving that even education can be habit-forming. Key Takeaway: Loss aversion (streaks) drives daily engagement. Micro-rewards (XP, badges) make progress tangible. 3. Nike: Turning fitness into a competition Nike's Run Club and Training Club apps use challenges, leaderboards and milestone badges to transform exercise into a social game. By allowing users to compete with friends and share achievements, Nike taps into social validation, a powerful motivator. The result? Increased app engagement translates directly to brand loyalty and product sales. Key Takeaway: Social competition enhances motivation. Milestone rewards (badges, trophies) reinforce commitment. 4. McDonald's Monopoly: Scarcity and instant wins McDonald's long-running Monopoly campaign blends instant rewards (free fries) with long-term goals (winning big prizes). The limited-time nature of the game creates urgency, while the tactile act of peeling stickers delivers instant gratification. The campaign has become a cultural phenomenon, driving repeat visits and boosting sales. Key Takeaway: Instant + delayed rewards maximize engagement. Scarcity tactics (limited-time offers) drive urgency. 5. LinkedIn: The subtle gamification of professional networking Even professional platforms use gamification. LinkedIn's profile completion meter nudges users to add more details, while endorsements and "Top Voice" badges incentivize activity. The platform's "Who's Viewed Your Profile" feature plays on curiosity and status-seeking behavior. Key Takeaway: Progress tracking encourages profile optimization. Social proof (endorsements) increases engagement. The dark side of gamification While gamification can deepen engagement, it's not without ethical concerns. When overused, these techniques can foster compulsive behaviors, particularly in vulnerable users. One major issue is the loot box controversy. Video games like FIFA Ultimate Team and Overwatch have faced backlash for loot boxes, which function like gambling by offering randomized rewards. Some countries have banned them, arguing they exploit psychological vulnerabilities. Another concern is how social media platforms like Instagram and TikTok use infinite scroll and variable rewards (likes, comments) to keep users hooked. Studies link excessive use to anxiety and decreased attention spans. This raises questions about responsibility in gamified marketing. Brands must balance motivation with ethics. Best practices include transparency (clear reward odds, no deceptive mechanics), user control (opt-out options, time limits) and avoiding exploitative designs such as dark patterns. Related: 7 Ways to Boost Customer Retention Through Email Gamification The future of gamified branding As AI and AR evolve, gamification will become even more immersive. Emerging trends include AI-powered personalization, where platforms like Netflix — already using algorithms to recommend content — could introduce dynamic challenges (e.g., "Watch three sci-fi movies this week for a badge") and adaptive rewards such as personalized discounts based on user behavior. Augmented reality scavenger hunts are also on the rise. Brands like Pokémon GO's sponsors (Starbucks, Sprint) have successfully driven foot traffic using AR. Future applications might feature virtual pop-up shops where users scan QR codes to unlock deals or interactive billboards that offer coupons through mini-games. Blockchain and tokenized rewards are reshaping loyalty programs. These could include NFT-based rewards like exclusive digital collectibles and tokenized points that are tradeable on crypto exchanges. Finally, the metaverse is paving the way for persistent brand worlds. As virtual environments expand, brands may create permanent branded spaces — such as Nike's Nikeland in Roblox — or host virtual events with XP systems where users can earn VIP status by attending multiple events. Play to win Gamification isn't just about points and badges; it's about hacking human motivation. By understanding dopamine-driven feedback loops, brands can craft experiences that don't just capture attention — they own it. The lesson is clear: in the battle for consumer mindshare, the most successful brands won't just sell products — they'll design play. Yet, with great power comes responsibility. As gamification grows more sophisticated, brands must prioritize ethical design, ensuring experiences enrich rather than exploit. The future belongs to those who can balance engagement with empathy, turning users into loyal advocates, not addicts. The question is, are you playing the game — or is the game playing you?
Bloomberg
22-05-2025
- Business
- Bloomberg
Mastercard's Meyer Talks Retail and Travel Trends
Mastercard Economics Institute Chief Economist Michelle Meyer says retailers are still seeing an engaged consumer and there's no clear evidence yet that tariffs are playing a role in spending on "Bloomberg The Close." (Source: Bloomberg)
Forbes
22-05-2025
- Business
- Forbes
Reality Check: The One Thing That's Probably Missing From Your Omnichannel Marketing Strategy
Omnichannel marketing has become dogma among modern marketers. We collectively take it for granted that to 'reach consumers where they are,' your campaigns need to span a mix of channels to engage potential buyers here, there and everywhere. Because consumers' journeys have become totally unpredictable, and there's no telling how in the heck they'll navigate your funnel. Getty But like any article of faith, omnichannel can get a little shaky sometimes — particularly when campaigns underperform or begin petering out, and marketers start to ask: What went wrong? What's missing? What are we not getting? A new white paper from The Harris Poll (THP) offers some potential answers. For 'The Return of Touch Report: Reimagining Consumer Engagement in 2025,' which Quad is proud to present, THP conducted a demographically representative survey of 2,068 U.S. adults. Among the white paper's eye-opening data points: • 79% of all consumers surveyed by The Harris Poll say that online shopping lacks the 'magic' of an in-person find — and 71% say that online shopping experiences blur together. • 86% of Gen Z and Millennial consumers agree that 'touching and feeling products are essential to my purchase decisions.' • 71% of all consumers agree that 'print catalogs or magazines feel more authentic than digital campaigns' — and, notably, that percentage is even higher (79%) for Millennials. • 73% of Gen Z and Millennial consumers say they look forward to receiving catalogs from brands. • 72% of Gen Z and Millennials say that they 'wish more brands focused on surprising me through [physical] mail.' • 71% of all consumers agree that 'experiencing a brand in a physical store deepens my connection and loyalty to it.' When you think about it, there's a narrative throughline that connects all these data points — and it's that consumers want more realness, more reality, in their media mix. Quite simply, consumers are craving more tangible, tactile media and IRL brand experiences. Digital campaigns done right can, of course, be incredibly effective, but by their very nature they're ephemeral — fleeting. You can scroll right past them in the blink of an eye. Physical media and IRL activations, though, are persistent. They engage more of our senses. They transcend the feeling of our endless swiping, scrolling and tapping at glass. As you probably gathered from some of the data points I shared above, The Harris Poll found that Gen Zs and Millennials are driving the 'Return of Touch' trend. Surprisingly, this phenomenon isn't about boomer nostalgia. Rather, it's digital-native generations saying that they're feeling particularly 'screen-weary' (as THP puts it) and are thus craving IRL experiences and media they can touch and feel. Of course, no matter how screen-weary you are — or what generation you belong to — you're probably not giving up your smartphone anytime soon. So, what this is really all about is omnichannel that bridges online and offline campaigns and activations. It's not about replacing digital campaigns with, say, direct mail. Instead, it involves marketers finding the right, data-driven mix of channels that include some touchpoints that are actually touchable. As a marketing experience (MX) company, Quad works with 2,100 brands, including hundreds of retailers and CPG marketers, so we tend to see where the marketplace is heading in advance. We decided to work with The Harris Poll — one of the most storied, trusted consumer research companies in the world — to explore these trends and to get their POV on what we at Quad were seeing. To be clear, this is The Harris Poll's research; this is their independently conducted, demographically balanced survey of U.S. consumers. But the findings validated what Quad has been seeing firsthand in the marketplace — everything from the print catalog boom to the relaunch of magazine brands to retailers doubling down on creating immersive, engaging experiences that draw consumers into their brick-and-mortar stores. The bottom line is that in 2025, omnichannel isn't really omnichannel — and your strategy is probably not reaching its full potential — if it's digital-only. This is a marketing reality check that's all about, well, reality. Want to learn more? Download a (free) copy of 'The Return of Touch Report: Reimagining Consumer Engagement in 2025' here.
