Forbes Mexico.
Effective loyalty strategies: How to adapt to the diversity of the Latin American market?
By María Barraza*
For years, talking about loyalty programs was almost synonymous with discounts, points and promotions. Today, that vision is no longer enough. In an environment in which the Latin American consumer is increasingly informed, it is more demanding and has expectations that change rapidly, loyalty has become a more complex and much more strategic career.
Loyalty is no longer earned with a catalog of rewards. It is built – and is maintained – with personalized experiences, with benefits that are delivered at the right time and with a narrative that connects with the values of people. The key is to understand that the consumer is not faithful to a brand because he needs it, but because he believes that this brand understands it better than the others, and this is confirmed by the data.
According to the study Loyalty strategies and programs in Latin America 2025 EY, more than 80% of consumers ensure that their perception improves when a brand offers a loyalty program, and a similar proportion says that these programs directly influence their expenditure level. This equation has nuances because, at present, loyalty is shared, fragile and conditional, but, above all, it is not a coincidence, but a causality.
The same person may be registered in two or more programs within the same category and, even so, buy outside them if he finds a more attractive proposal. Beyond perceiving as a threat, this situation is an invitation to rethink loyalty strategies. Gaining relevance implies knowing how to compete for attention and affinity every day, not just for price.
In that sense, customization has become the new standard. Almost half of consumers are willing to share their data if that translates into benefits adapted to their interests. The challenge for companies is really using that information to create significant experiences and not stay in basic segmentation.
From the business gaze, loyalty programs continue to fulfill their main objective: strengthen the relationship with customers. Most of them are still free access and many brands are advancing in personalized recommendations. However, the challenges persist, especially in the incorporation of technology, the development of digital means of payment and the ability to accurately measure the financial impact of these initiatives.
We usually talk about the importance of retaining the client, but we do not discuss with the same intensity on how to measure the value that this retention really brings. Less than 35% of companies tracked metric such as the average value of ticket or growth in related categories. There is a great opportunity for improvement.
If something has been clear in this new era, it is that loyalty goes beyond trying to accumulate memberships, the goal must be generating links. People values discounts, of course, but increasingly values the unique experiences, personalized treatment and the feeling that their loyalty matters.
Loyalty programs in Latin America are in full transformation. Those who manage to see them as an extension of the brand strategy, can capitalize on their true potential. Companies should not settle for rewarding the client for staying with them, they must give them reasons to return and remain by choice and not by obligation.
About the author:
*María BarrazaExecutive Director of Business Transformation & Customer for EY Mexico.
The opinions expressed are only the responsibility of their authors and are completely independent of the position and the editorial line ofForbes Mexico.
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Effective loyalty strategies: How to adapt to the diversity of the Latin American market?
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