2022/23: Re-imagined loyalty

New social, political, and economic changes are impacting the cultural zeitgeist of today, and tomorrow’s consumer.

The urgency of the climate crisis, alongside digital advancements and the growing pressure of the cost-of-living crisis has inspired a new approach to brand loyalty.

Over 60% of Millennials (KPMG) say they would prefer to donate their loyalty rewards to a cause that has a real-world impact, instead of redeeming them personally.

The changing face of loyalty for consumers is part of a wider trend which focuses on consumer consciousness. Consumers want to consume more consciously, contributing to making the world a better place, and brands must support this emerging intention.

 

 

The most recent and popular form of loyalty schemes have been money, or NFT led. For example – Beauty brand Clinique’s early access NFTs; Three winnable colour-changing NFTs honoured popular products, allowing winners early access to one of their most popular products ‘Black Honey’.

Now we are not bidding farewell to NFT inspired loyalty, or schemes that engage consumers by offering personal gains – but we are seeing a noticeable shift toward loyalty that is purpose driven.

 

Purpose driven loyalty

Equitable brand engagement is key looking ahead. Several different companies are recognising a need to encourage and reward conscious consumption.

H&M for example introduced their ‘Conscious Points’ last April. This sees consumers collecting points for activity deemed conscious by the brand. For example – recycling unwanted clothing from any brand in-store would earn a customer 20 points. H&M are hoping to inspire their consumers to be more altruistic by introducing this purpose driven approach to loyalty.



Akin to H&M – Klarna introduced a loyalty scheme inspired by purpose. This purpose however, was not created to help foster eco-centric sentiment but instead to incentivise financial security.

This February – Klarna decided to expand their rewards app, adding payment focused ‘missions’. The app is designed to develop purposeful loyalty, allowing its users to earn points for every on-time payment. These points can then be redeemed with brands including Amazon and H&M.

Klarna summed up the extension as: “small, engaging tasks aimed at encouraging consumers to discover different features in the Klarna app and take control of their finances”.

 

TOO Takeaways

– Consumers are more conscious than ever. Given this, brands must consider how their loyalty offers are going to best appeal to the utilitarian shopper. Perks or rewards that have a real-world impact, or purpose will resonate with 2022/23’s consumer.

– Consumers’ want knowledge and reassurance when it comes to financial security. It is important brands empower their consumers to take a more conscious approach to their personal finance. In an increasingly complex digital world – online consumption or financial management can feel beyond our control.

– Talking about conscious consumption does not have to relate directly to eco-centric action, as Klarna have shown with their new loyalty scheme that incentivises conscious financial management, and consumption. How could brands re-imagine loyalty with different concepts or versions of ‘conscious’ consumption?