New Trend Hunter Report Examines How Modernized Loyalty Programs Spark Consumer Engagement
November 14, 2019 | Toy Association members can access TrendHunter.com’s latest free monthly report, which explores how brands curate loyalty programs to build and reward their consumer base through mobile apps and other platforms.
"The latest Trend Hunter report offers the toy and game community multiple examples of how loyalty programs can be revamped and use the latest technologies to increase engagement and appeal to the modern consumer," said Anne McConnell, senior director of market research & data strategy at The Toy Association.
This report explores the following topics and more:
- Branded Adventure – Beyond offering loyalty points or promotions, branded interactive gaming experiences can help brands engage different audiences before they even enter the store. Ahead of the Pokémon Detective Pikachu movie release, for example, 7-Eleven enticed fans with themed products, photo filters, and interactive AR quests to earn promotional points via the 7-Eleven app.
- Rewarded Wellness – Brands are creating rewards programs that encourage consumers to lead healthy lives to earn prizes. This can range from exercise-earned rewards that track physical activity, such as the NikePlus Upgrade which rewards members with partner products for hitting new milestones, to weight-loss rewarding scales like the YoloScale smart scale, which encourages users to keep moving toward their goal in the form of exclusive discounts and deals.
- Bold Unbranding – Big brands are relying less on their logos and emphasizing the iconic imagery, aesthetics, and references to their product to connect with consumers. This includes Doritos’ un-branded chip campaign, which relied solely on its iconic chip shape and packaging color palette; Target’s unbranded home essentials collection with more than 70 items; and intentionally brandless campaigns such as a Mountain Dew campaign with Game of Thrones-inspired packaging.
- Alternative Currency – Some brand activations are inviting consumers to use creative forms of payment, which can help increase engagement and strengthen brand loyalty. A Reese’s vending machine let consumers trade in their “bad candy” for Reese’s in a Halloween promotion, while Corona and New Balance let consumers pay for their products in exchange for plastic and miles run, respectively.
- Crypto Loyalty – To appeal to Millennials and Gen Z demographics, brands are bridging the gap between modern-day loyalty programs and cryptocurrency. Thanks to new programs, consumers can now generate cryptocurrency using e-bikes (LoyalCoins/50cycles partnership), or connect an existing credit card or bank to earn up to 20 percent cashback in the form of Bitcoin as you shop (Pei program), and more.
- Merchandise Expansion – As the popularity of branded merchandise rises, products are evolving beyond simply clothing and memorabilia to demonstrate brand loyalty. They are expanding beyond their traditional categories. Taco Bell released a line of unconventional Crunchwrap-inspired wrapping paper and hot sauce-inspired wedding accessories, while streetwear brand Supreme teamed with the New York Post for a limited-edition newspaper.
This report is the latest in a series from Trend Hunter offering in-depth perspectives and trends in various areas related to the toy industry and beyond youth markets to help spark unique ideas. For additional relevant trends, toy companies may click on the report’s consumer insights examples, scroll down, and click the images for further information.
Members are encouraged to send topic suggestions for future trend reports to The Toy Association’s Anne McConnell.
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