9 min read
Oct 21, 2024
Consumers are difficult to please – especially when it comes to what they eat and drink.
Convincing them to select your brand over another takes more than just the price. Flavor, availability, nutritional value, and even the product’s ecological impact all have a say in what consumers eat and drink.
One of the most effective ways to win them over is with a food and beverage customer loyalty program.
In a nutshell
The 9 ingredients of a successful food and beverage loyalty program are:
Food and Beverage Marketing Challenges that Leave a Sour Taste
Intensifying Competition
The CPG industry is among the most competitive, with thousands of new products entering the market every year. On the other side of the coin, market leaders continue to strengthen their position. For example, Mars' acquisition of Kellanova (the snack division of Kellogg's) in 2024. In this saturated market, making your products stand out from the crowd is becoming harder than ever.
How Loyalty Programs Help
A well-executed food and beverage loyalty program incentivizes consumers to choose your products over your competitors'. This is vital in CPG, where things like product packaging and shelf placement can have a huge influence on fickle shoppers.
Connecting with Consumers Emotionally
Research shows that consumers respond better to brands that go the extra mile to connect with them on an emotional level. That's easier said than done, particularly among Gen Z consumers who can spot inauthentic brands and messaging from a mile away.
How Loyalty Programs Help
Food and beverage loyalty programs are a great way to show consumers you align with their values on important issues, like healthy eating and the environment. They help you deliver personalized messages, offers, and rewards that show you understand their needs and what matters most to them.
Market Disruptors
The distribution landscape is becoming more sophisticated. New approaches to direct-to-consumer marketing and quick commerce present new challenges – and opportunities – for food and beverage brands. Relying on traditional approaches may no longer be enough.
How Loyalty Programs Help
Multichannel programs allow you to meet consumers where they are. And by collecting valuable first-party data, you can deliver personalized offers and rewards directly to every customer on their preferred channels.
Social and Environmental Concerns
Changing attitudes towards healthy eating, plant-based foods, and sustainability has disrupted the CPG market. Take Oatly. For years, the Swedish dairy alternative has challenged traditional perceptions of cow’s milk with its tasty, cruelty-free, plant-based substitute. However, it’s also created new challenges for dairy brands, forcing them to rethink how they market their products amid legitimate animal welfare concerns.
How Loyalty Programs Help
In the same way food and beverage loyalty programs help you connect with consumers on an emotional level, they provide a vital opportunity to showcase how you tackle hot-button issues, like animal welfare.
9 Tips to Spice Up Your Food and Beverage Loyalty Programs
1. Make it User-friendly
Welcome customers into the fold with a seamless user experience.
Customers simply won't engage with brands that force them to jump through hoops – especially if they don't get value in return. The best food and beverage loyalty programs are easy to join, with an intuitive user-interface that allows them to manage their account, earn and redeem rewards, and monitor tier progression effortlessly, from one loyalty platform.
2. Serve Value
Add some extra flavor to your loyalty program by incorporating multiple, personalized reward options. These should go beyond simple financial incentives to incorporate experiential rewards, such as:
- VIP access to new products
- Exclusive content or events
- Charitable donations
In the same way a meal is only as good as its main course, food and beverage loyalty programs live and die on the strength of their rewards. If your offering’s bland or generic, customers won’t see the value in participating. Worse, they may choose to shop elsewhere.
3. Embrace Omnichannel
Cater to different tastes by making your program accessible on multiple channels.
Whether members like to engage with your program in-store or online, an omnichannel engagement strategy enables you to deliver consistent experiences across touchpoints. Aside from making your program more enjoyable for members, research suggests that seamless omnichannel engagement strategies increase customer loyalty by 36%.
Snipp tip
Struggling to manage disparate member touchpoints? Dedicated customer loyalty software lets you manage multiple channels from one place.
4. Deliver Unique Experiences
Set your members’ tastebuds tingling with unique and immersive digital experiences.
People live more of their lives online than ever before. According to recent research, over 50% of consumers have taken part in virtual experiences, and that figure is likely to grow. Capitalize on this trend by integrating immersive technologies into your loyalty program.
Surprise and delight customers by letting them explore your products in virtual reality –where you source your ingredients or how you make your products. These interactive experiences enhance the customer journey, leaving a lasting impression that helps you stand out in a crowded market.
5. Personalize Your Program
Show members you know them better than your competitors with personalized deals, offers, and promotions.
Consumers are more likely to engage with food and beverage loyalty programs if they receive relevant rewards and experiences, based on their purchase history and other data. By contrast, a generic approach leaves them feeling underappreciated and disinterested, making them more likely to switch.
This is particularly noticeable among high-income shoppers and millennials, who display stronger loyalty to grocery brands than younger consumers.
Snipp tip
Effective personalization relies on accurate data. Receipt validation tools let you analyze each member’s entire purchase history, helping you better understand their preferences to deliver more tailored experiences.
6. Harness Newstalgia
Delight existing members and attract new ones by blending familiarity with innovation.
Like a hot chocolate on a cold winter’s night, consumers crave comfort and familiarity from brands. But by the same token, they favor those that aren’t afraid to push the boundaries. This has given rise to a new trend: “newstalgia”.
Capitzalize on this trend by incorporating retro elements into your product packaging or marketing campaigns for new products. This hybrid approach brides the gap between older and younger members, helping you reach a wider audience through your loyalty program.
7. Align with Consumer Values
Give members the opportunity to make a difference by aligning your loyalty program with their values.
Recent years have seen a shift in consumer attitudes, most notably amongst Gen Z. They gravitate towards brands that aren't afraid to share their stance on key social, environmental, and governmental (ESG) issues. These include sustainability and ethical consumption. As such, they’re drawn to products that:
- Are made from ethically sourced ingredients
- Use eco-friendly packaging
- Low-carbon footprint supply chains
- Support good causes
You can capitalize on this trend by awarding extra points for eco-friendly behaviors or allowing them to donate points to support charities.
Over half of global consumers consider ESG factors when purchasing from brands.
8. Reward Healthy Lifestyles
Incentivize members to make healthy lifestyle choices.
Consumers are also more health-conscious than ever, preferring clean label products that are free of additives, preservatives, and artificial flavors. Incorporate this into your loyalty program by emphasizing the nutritional content of your products. Alternatively, offer rewards based on member behavior. For example, offering extra points for well-balanced baskets or allowing them to win healthy recipe books that use your products as ingredients.
9. Experiment with Collaborative Marketing
Expand your loyalty program’s menu with a collaborative marketing initiative.
Strategic partnerships with brands, retailers, or even influencers helps you tap into new audiences quickly and cost-effectively. Whether it’s a limited-edition product or an integrated cross-category marketing campaign, they provide unique experiences that help to raise brand awareness and drive sales.
60% of consumers value the flexibility to earn and redeem points from multiple brands.
Whet Your Appetite with these Food and Beverage Loyalty Program and Promotion Examples
Sparkling ICE
Sparkling ICE Rewards embraces the omnichannel approach in its food and beverage loyalty program.
Built on our receipt validation technology and rewards offering, the program gives members multiple ways to earn points – from monthly log-ins to completing surveys and uploading receipts. They can then exchange their points for various rewards, including free samples and access to exclusive products.
Ben & Jerry’s
Flavor Fanatics is a great example of a loyalty program that understands its members.
Appealing particularly to younger generations, Flavor Fanatics lets members earn, track, and redeem rewards directly through their smartphones – no paper coupons needed. Additionally, the program lets members explore Ben & Jerry’s ESG initiatives, helping to build trust through transparency.
Chipotle
Promotions play an integral role in customer loyalty programs. In 2023, Chipotle partnered with Snapchat to create an augmented reality (AR) lens experience that encouraged customers to “move their bodies and calm their minds”.
Launched on January 13th (also known as Quitters Day) the promotion rewarded 100,000 lucky customers with a promo code for a free side or topping of guac.
Satisfy Your Customers – and Your Bottom Line
When you get your food and beverage loyalty program just right, everyone benefits. Members feel acknowledged and valued, making them more likely to chose your products over other brands.
However, loyalty programs are more than a tool to drive repeat sales. Regular member participation and engagement provides valuable insights into customer behavior, helping you deliver more memorable experiences and forge strong, lasting relationships.
Want to know how to elevate your food and beverage loyalty program? Get in touch with our experts.
Dec 18, 2024
41 min read
