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Transactional VS Emotional Customer Loyalty Featuring Mark Ross-Smith

Mark Ross Smith · May 30, 2023

Entrepreneur · Leadershipin

Interview with Mark Ross Smith

Podcast: Amazing Business Radio

May 30, 2023 · 31 min

How Brands Can Find a Balance Between Incentives and Emotional Connection Shep Hyken interviews Mark Ross-Smith a.k.a Mr. Loyalty and the CEO and Co-Founder of Loyalty Data Co, the parent company of StatusMatch.com. He talks about the roles of transactional and emotional…

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Transactional VS Emotional Customer Loyalty Featuring Mark Ross-Smith

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Key topicsDelivering Increased Revenue through Loyalty ProgramsA study by the Hotel Loyalty Report found that hotels with loyalty programs had an average occupancy rate of 75%, while those without programs had an average occupancy rate of 68%. This suggests that loyalty programs can help hotels fill more rooms and generate more revenue. How Artificial Intelligence and Big Data are Disrupting Airline and Hotel Loyalty ProgrammesAI and big data are transforming the way loyalty programs are managed and operated. For example, the use of AI-powered chatbots and virtual assistants is allowing companies to automate routine tasks, such as account management and rewards redemption, freeing up resources for more strategic initiatives. Additionally, the use of big data is allowing companies to track and analyze customer behavior in real-time, allowing them to make more informed decisions about their loyalty programs. (Source: Forbes, "How AI and Big Data are Revolutionizing Loyalty Programs") Disruptive Trends in Loyalty: Innovating to Drive Customer EngagementThe airline loyalty status is held by the most valuable global travelers, who represent 30-40% of airline revenue. Mark Ross-Smith and his company, Loyalty Data Co, have demonstrated their expertise in this area by delivering thousands of high-value travelers to Canada in 2021/2022 through their platform, Status Match.com, in conjunction with Destination Canada and Air Canada. View all topics →

About Mark Ross Smith

Award Winning Loyalty Data Thought Leader

25+ Major travel brands worked with100,000s Travellers helped by Loyalty Status Co2022 Loyalty Royalty 30 Under 40800,000+ members Australian social network co-founded & sold

Mark Ross-Smith is a global leader in the airline loyalty industry, with a passion for delivering value to both travellers and airlines. As the CEO and Co-Founder of Loyalty Data Co, Mark is shaking up the industry with his cutting-edge loyalty platform, StatusMatch.com. With over a decade of experience in the industry, Mark has a proven track record of success, having led the Malaysia Airlines Enrich Loyalty Program to consecutive years of financial growth. He was also the CEO of a leading high-tech start-up, where he harnessed the power of big data to drive incremental revenue for Telstra, Optus, and Vodafone.

Mark is a sought-after speaker and thought leader, known for his unique approach to loyalty innovation. He's been featured in major media outlets such as CNN, BBC, The Economist, and Financial Times, and has published numerous papers and articles on airline loyalty on his website, www.traveldatadaily.com. In 2022, Mark was also awarded Loyalty Magazine's prestigious "Loyalty Royalty" 30 Under 40 Award.

Mark's entrepreneurial journey has been nothing short of impressive. He co-founded and sold the largest Australian-owned social network, which had over 800,000 members and major global brands as customers. He's now focused on airline and loyalty data and has published over 50 thought-leadership articles on airline loyalty and big data monetization.

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About this episode

How Brands Can Find a Balance Between Incentives and Emotional Connection

Shep Hyken interviews Mark Ross-Smith a.k.a Mr. Loyalty and the CEO and Co-Founder of Loyalty Data Co, the parent company of StatusMatch.com. He talks about the roles of transactional and emotional incentives and how brands must learn to balance the two to build long-term customer loyalty.

Top Takeaways:

Loyalty programs are used in different industries to attract new customers and retain existing ones. They typically involve incentives for spending money on a brand through points, perks, upgrades, or free products. Loyalty programs have now evolved to include enhancing the customer experience.

In the recent Achieving Customer Amazement study, 69% of customers say loyalty programs are important to them. That’s almost seven out of ten customers who appreciate a good loyalty program.

True loyalty programs are not just about points and perks; that is more about marketing. True loyalty is when a customer chooses to do business with you even when they have other options, regardless of the rewards.

A successful loyalty program is not designed for everyone. It should work really well for a certain group of customers and reasonably well for a slightly larger one.

There are two ways to get people more invested in a brand. First is the transactional way, such as getting customers to subscribe to a product. Then there is the emotional way which is getting people to connect with your brand through personalized engagement and positive experiences.

Transactional incentives and emotional engagement have their roles in creating loyalty. Brands must learn to find a balance between the two to build long-term customer loyalty.

Some brands use the five love languages to tap into the emotional side of their customers - Words of affirmation ("You're one of our most important customers."), Quality time (Spending time to ask them about their day or their experience), gifts, acts of service, and physical touch (a handshake or a gentle tap on the shoulder when appropriate).

Plus, Mark shares the interesting ways airlines and customers benefit from loyalty programs. Tune in!

Quote:

"Be a customer of your own product. Learn the challenging situations that your customers face throughout their experience. Being a customer of your business is fantastic training for learning how to improve the customer experience and the loyalty experience."

About:

Mark Ross-Smith, a.k.a Mr. Loyalty and the CEO and Co-Founder of Loyalty Data Co, the parent company of StatusMatch.com, a loyalty platform that helps individual consumers and corporate clients get equivalent value status with a competing airline and hotel.

Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and host of Amazing Business Radio.

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Guest: Mark Ross Smith