October 21, 2024
On the Internet of today, customers are bombarded with advertisements all the time. The choices are seemingly endless. The rise of algorithms, in promoting content that it believes that customers will like in real-time, has furthered this phenomenon. Smartphones have also done the same, in that now customers always have a device available to them to engage with services, platforms, and advertisements.
This is what has led to the trend of “instant gratification”. Namely, customers hope to have quick online shopping experiences in which they can be immediately rewarded. With so many choices in front of them, customers operate on the basis of the “right now”, rather than thinking in the long term. This is a game-changer in terms of the accelerating pace of managing relationships with customers.
The key, then, is to grasp the “micro-moments”, particularly on mobile-first experiences. This raises questions for membership businesses, aiming to stimulate customer engagement, and may have put a great deal of time into cultivating existing relationships with customers.
Part of what drives this trend is the desire for convenience, something customers are more accustomed to ever seeing as they have so many choices. Customers want options now, rather than later.
And, even if technology has increased the speed of interactions between customers and businesses, this taps into something fundamental to human psychology–wanting gratification now rather than later. After all, given our evolutionary history, we are geared toward the dopamine rush of wanting immediate and satisfying experiences instead of wanting to wait for larger but potentially uncertain rewards later on.
Yet the fundamental dynamics still apply, in that 60% of revenue in many industries comes from existing customers. To this extent, it is important to note that 95% of purchasing decisions are driven by emotions. Loyalty between customers and businesses is, unsurprisingly, also strongest when built on emotional ties.
This is not to say that Gen Z is not loyal to brands. But Gen Z has grown up seeing far too much advertising around them all the time. Gen Z, then, values authenticity and shared values in terms of brands. Sustainability and social justice are important issues for Gen Z, something ultimately rooted in this desire for authenticity.
In this sense, in order to grab the opportunity that micro-moments present, recognizing the emotional connection between customers and businesses is key. And this still requires keeping in mind the long-term relationship that you build up with customers, in balancing instant gratification with longer-term rewards.
Given the trend toward instant gratification, customers are likely to be turned off when something does not “click” with them emotionally–and all the more so regarding rewards. But customers will build stronger relationships–ones rooted in emotional ties–if they perceive the immediate rewards that businesses offer as resonating with them, their values, and their self-understanding. 82% of consumers with high emotional engagement buy brands they are loyal to, as compared to 38% of consumers who don’t buy because of low emotional engagement.
We live in times in which it is possible to tailor customer experiences more than ever, given the amount of data that one can collect on customers through surveys, cookies, and online behavior. But that one needs to operate on the level of the “right now” just drives home the importance of having rewards that are a good fit for individual customers.
The move toward instant gratification also dovetails well with the gamification of services. Games are themselves, after all, a way of fulfilling one’s need for immediate satisfaction through the dopamine rush of victory or unlocking some accomplishment. Online and mobile games, such as are more popular than ever for this reason. When all the more people use smartphones than ever, as their main way of engaging with the Internet, mobile apps are key.
One of the most effective means of gamification, then, is using survey platforms. This meets a number of needs all at once, in that this can allow for gathering data on customers through games, while also strengthening ties with customers through personalized games and challenges. This can be a way of driving up engagement with customers and keeping them coming back, as well as making this a two-way relationship between customers and businesses.
Partnering with online survey platforms can be a way of accomplishing this. Customers especially are enthused if they can accumulate points and use them for reward programs which can allow for instant gratification, or if there are other quick rewards for participating in surveys.
This can prove a way of strengthening engagement and conversions, while balancing long-term relationships with the turn toward immediate gratification.
To learn more about how you can monetize your loyalty program, get in touch with our consultants today!