The loyalty card is dead – loyalty programs haven’t completely disappeared but they’ve vastly evolved. One generation driving this change is Gen Z. In order for brands to attract digital natives, they’ve started to engage with them digitally.

Today, younger generations expect a lot more from their brands. As well as receiving the customary rewards for being loyal to a brand, they also want that brand to fit into their life on an emotional and values level.

Customers between 18-24-years-old are the least likely to sign up to loyalty programs but are also the most engaged and loyal members once they do join – meaning if brands can lock them in, they’re like gold dust.

Why you should care about appealing to Gen Z

Gen Z is the fastest growing consumer market in the UK. The incentive to reach them is huge, with loyal customers purchasing 90% more frequently – and no-one shops more than the Gen Z crowd.

But Gen Z is also much harder to sell to than previous generations. They’re more values-driven and they want brands to be part of the change they want to see in the world: 40% of them are willing to boycott a brand if it doesn’t line up with their values, compared to 16% of millennials.

Why is loyalty so hard to get right for Gen Z?

Loyalty is hard work and as most brands offer some sort of loyalty program it makes it even more difficult to engage customers.

• Loyalty saturation – your strategy needs to stand out to cut through a crowded market.
• It needs to keep up with changing expectations as loyalty programs can get stale.
• It’s complex – brands need to navigate data, systems, personalisation, prediction and omnichannel to deliver a leading program.
• Customer retention is difficult – brands need to provide value and an emotional connection that goes beyond points and rewards.

So what can brands do to appeal to Gen Z?

Gen Z are hyper-aware and hyper-connected. They’re tech-savvy and have been raised on the internet and with digital products in their hands. They can also be fickle and hard to reach: for example, Gen Z say they love loyalty programs but aren’t joining them.

Loyalty needs to be cross-channel

Traditional loyalty programs don’t appeal to Gen Z. As Gen Z have grown up with tech, they expect brands to have solutions to their problems in a digital solution they can take with them anywhere. But that doesn’t mean they want their rewards to be digital too.

Gen-Z interact with brands cross-channel: online, on apps, social media, and in-store. Though COVID19 has seen a surge in eCommerce, brick-and-mortar and physical experiences are still really important to Gen Z. Brands need to think about their loyalty program being omnichannel, and delight and surprise members with rewards that make them feel like a VIP.

For example, Vans’ loyalty program, Vans Family, surprises members with packages, which include trainers, water bottles and caps, and members can get exclusive and early access to products. Members can easily manage their membership through the app, which allows them to track points and redeem rewards, keeping the control in their hands.

This loyalty program helped Vans grow its members to 12 million in just 2 years. It has also seen an increase in spending by loyalty members vs. non-loyalty members, with its loyalty program being responsible for more than half of its DTC revenue. Now that’s a loyalty program that really works!

Brands need to uphold their values

Gen Z are also more aware of woke-washing and expect these values to be reflected in the brands they shop with. This generation is more likely to walk away from brands that don’t uphold their values; it has created an interesting paradigm whereby shopping has morphed into a more demographic hierarchy of power between brands and customers. This means that, more than ever, consumers now have the power to shape brands beyond their products.

Brands like H&M have incorporated these values into their their loyalty programs. The H&M loyalty program rewards customers for buying from its Conscious line, which are its more sustainable choices.

Whenever a member purchases from this line, they receive Conscious points – these can also be earned by recycling clothes they no longer use in its Garment Collecting program. Members who recycle receive points and a digital voucher.

As Gen Z are on the constant lookout for value but also a more sustainable future, members of H&M’s loyalty program can feel good for being part of a loyalty program that not only rewards them but also works toward a more sustainable fashion future.

These days, in order for brands to successfully appeal to the younger generation, they need to evolve beyond their products and services, and reflect the lifestyle of their consumers.

Brands can foster more loyal customers by thinking beyond loyalty points and rewards but appealing to consumers on a much more human level and thinking about loyalty as a relationship between their business and their customers.

The loyalty card is dead – loyalty programs haven’t completely disappeared but they’ve vastly evolved. One generation driving this change is Gen Z. In order for brands to attract digital natives, they’ve started to engage with them digitally.

Today, younger generations expect a lot more from their brands. As well as receiving the customary rewards for being loyal to a brand, they also want that brand to fit into their life on an emotional and values level.

Customers between 18-24-years-old are the least likely to sign up to loyalty programs but are also the most engaged and loyal members once they do join – meaning if brands can lock them in, they’re like gold dust.

Why you should care about appealing to Gen Z

Gen Z is the fastest growing consumer market in the UK. The incentive to reach them is huge, with loyal customers purchasing 90% more frequently – and no-one shops more than the Gen Z crowd.

But Gen Z is also much harder to sell to than previous generations. They’re more values-driven and they want brands to be part of the change they want to see in the world: 40% of them are willing to boycott a brand if it doesn’t line up with their values, compared to 16% of millennials.

Why is loyalty so hard to get right for Gen Z?

Loyalty is hard work and as most brands offer some sort of loyalty program it makes it even more difficult to engage customers.

• Loyalty saturation – your strategy needs to stand out to cut through a crowded market.
• It needs to keep up with changing expectations as loyalty programs can get stale.
• It’s complex – brands need to navigate data, systems, personalisation, prediction and omnichannel to deliver a leading program.
• Customer retention is difficult – brands need to provide value and an emotional connection that goes beyond points and rewards.

So what can brands do to appeal to Gen Z?

Gen Z are hyper-aware and hyper-connected. They’re tech-savvy and have been raised on the internet and with digital products in their hands. They can also be fickle and hard to reach: for example, Gen Z say they love loyalty programs but aren’t joining them.

Loyalty needs to be cross-channel

Traditional loyalty programs don’t appeal to Gen Z. As Gen Z have grown up with tech, they expect brands to have solutions to their problems in a digital solution they can take with them anywhere. But that doesn’t mean they want their rewards to be digital too.

Gen-Z interact with brands cross-channel: online, on apps, social media, and in-store. Though COVID19 has seen a surge in eCommerce, brick-and-mortar and physical experiences are still really important to Gen Z. Brands need to think about their loyalty program being omnichannel, and delight and surprise members with rewards that make them feel like a VIP.

For example, Vans’ loyalty program, Vans Family, surprises members with packages, which include trainers, water bottles and caps, and members can get exclusive and early access to products. Members can easily manage their membership through the app, which allows them to track points and redeem rewards, keeping the control in their hands.

This loyalty program helped Vans grow its members to 12 million in just 2 years. It has also seen an increase in spending by loyalty members vs. non-loyalty members, with its loyalty program being responsible for more than half of its DTC revenue. Now that’s a loyalty program that really works!

Brands need to uphold their values

Gen Z are also more aware of woke-washing and expect these values to be reflected in the brands they shop with. This generation is more likely to walk away from brands that don’t uphold their values; it has created an interesting paradigm whereby shopping has morphed into a more demographic hierarchy of power between brands and customers. This means that, more than ever, consumers now have the power to shape brands beyond their products.

Brands like H&M have incorporated these values into their their loyalty programs. The H&M loyalty program rewards customers for buying from its Conscious line, which are its more sustainable choices.

Whenever a member purchases from this line, they receive Conscious points – these can also be earned by recycling clothes they no longer use in its Garment Collecting program. Members who recycle receive points and a digital voucher.

As Gen Z are on the constant lookout for value but also a more sustainable future, members of H&M’s loyalty program can feel good for being part of a loyalty program that not only rewards them but also works toward a more sustainable fashion future.

These days, in order for brands to successfully appeal to the younger generation, they need to evolve beyond their products and services, and reflect the lifestyle of their consumers.

Brands can foster more loyal customers by thinking beyond loyalty points and rewards but appealing to consumers on a much more human level and thinking about loyalty as a relationship between their business and their customers.

Amazon

Amazon is often touted as a leading digital customer service brand: in 2020, it topped the UK’s list for best customer service. Its ability to personalise experience for its users often means that customers can usually find a solution by self-serving through its Help Centre. Talking to a human is often the last step of the journey. What this approach is missing is a helping human hand guiding customers to make the right purchase decision – it relies heavily on reviews from other customers, which often brings up issues around trust or personal taste.

Starling Bank

Starling provides a 365/24/7 contact centre through live chat in-app or on desktop and phone support should you get stuck, which is incredibly convenient! It goes beyond a traditional approach of waiting on the customer to make the first move by sending app notifications if something isn’t quite right, providing more immediate and proactive support. Being digital, Starling has the benefit of tracking customer data to understand how to improve its service. It has great reviews and although its approach isn’t particularly innovative (Monzo is similar), it’s incredibly successful.

Innovators

A hybrid approach combines the efficiency of digital with the reassurance, personalisation, and customisation of a human. Note: this isn’t sticking a digital solution on top of an offline experience, like Specsavers, or including an agent at the end of the digital journey, like Amazon.

Pros:

• A human can help the customer during the decision-making process, to ensure they make the right decision to minimise issues.
• The journey is seamless: the customer doesn’t leave the channel to get the help they need. There is no transferring between web and phone, or waiting on an agent to call back.
• Meets the customer’s needs at the stage they are at, bringing in expert support when necessary, for as long as necessary before passing back to digital.
• Has a higher conversion rate than digital alone.

Cons:

• This approach that relies heavily on customer data to implement. It can be hard to get right.
• Business need to invest in the right technology to make it work.
• It’s not necessary for all businesses, especially those that rely on more impulsive purchasing like Lululemon.

A hybrid customer service approach works well as human intervention is not the last step but there to support customer every step of the way. Therefore, it works best for businesses selling big ticket items and and customers doing more considered buying.

INNOVATORS LEADING THE WAY WITH HYBRID CUSTOMER SERVICE

Bionic

As a small business energy comparison site, Bionic recognises its customers need support at every stage of the process. Its customer service starts with the standard steps (address, business name, etc.) but to get a quote, customer get to speak to a real human. An agent gets in touch, in real-time, to talk customers through the quotes on their screen – customer don’t hang up and then wait for someone to call back, it’s all done fluidly. Bionic figured out the bit that only human-to-human interaction can do and built its service around delivering that with as much digital efficiency as possible.

Currys PC World

Currys connects online customers to live, in-store customer service experts. In 2020, Currys launched ShopLive, a service that connects customers to video chat with one of the its tech experts in-store, who help customers make the right decision when shopping, even from the comfort of their own homes. Customers are able to get a personalised service, remote or in-store if they wish, with the human touch for peace-of-mind when making big-ticket purchases.

Key takeaways

Poor customer service can strangle business growth – it costs 5 times more to attract new customers than to retain existing ones. Innovation in customer service and technology means that brands can unlock loyalty and growth by finding which approach works best for them.

In summary, there needs to be some offering of both human and digital services to appeal to all audiences and ensure brands are meeting its customers where they are.

To find out more about Future Platforms and how we help brands build a leading customer service, get in touch.

The loyalty card is dead – loyalty programs haven’t completely disappeared but they’ve vastly evolved. One generation driving this change is Gen Z. In order for brands to attract digital natives, they’ve started to engage with them digitally.

Today, younger generations expect a lot more from their brands. As well as receiving the customary rewards for being loyal to a brand, they also want that brand to fit into their life on an emotional and values level.

Customers between 18-24-years-old are the least likely to sign up to loyalty programs but are also the most engaged and loyal members once they do join – meaning if brands can lock them in, they’re like gold dust.

Why you should care about appealing to Gen Z

Gen Z is the fastest growing consumer market in the UK. The incentive to reach them is huge, with loyal customers purchasing 90% more frequently – and no-one shops more than the Gen Z crowd.

But Gen Z is also much harder to sell to than previous generations. They’re more values-driven and they want brands to be part of the change they want to see in the world: 40% of them are willing to boycott a brand if it doesn’t line up with their values, compared to 16% of millennials.

Why is loyalty so hard to get right for Gen Z?

Loyalty is hard work and as most brands offer some sort of loyalty program it makes it even more difficult to engage customers.

• Loyalty saturation – your strategy needs to stand out to cut through a crowded market.
• It needs to keep up with changing expectations as loyalty programs can get stale.
• It’s complex – brands need to navigate data, systems, personalisation, prediction and omnichannel to deliver a leading program.
• Customer retention is difficult – brands need to provide value and an emotional connection that goes beyond points and rewards.

So what can brands do to appeal to Gen Z?

Gen Z are hyper-aware and hyper-connected. They’re tech-savvy and have been raised on the internet and with digital products in their hands. They can also be fickle and hard to reach: for example, Gen Z say they love loyalty programs but aren’t joining them.

Loyalty needs to be cross-channel

Traditional loyalty programs don’t appeal to Gen Z. As Gen Z have grown up with tech, they expect brands to have solutions to their problems in a digital solution they can take with them anywhere. But that doesn’t mean they want their rewards to be digital too.

Gen-Z interact with brands cross-channel: online, on apps, social media, and in-store. Though COVID19 has seen a surge in eCommerce, brick-and-mortar and physical experiences are still really important to Gen Z. Brands need to think about their loyalty program being omnichannel, and delight and surprise members with rewards that make them feel like a VIP.

For example, Vans’ loyalty program, Vans Family, surprises members with packages, which include trainers, water bottles and caps, and members can get exclusive and early access to products. Members can easily manage their membership through the app, which allows them to track points and redeem rewards, keeping the control in their hands.

This loyalty program helped Vans grow its members to 12 million in just 2 years. It has also seen an increase in spending by loyalty members vs. non-loyalty members, with its loyalty program being responsible for more than half of its DTC revenue. Now that’s a loyalty program that really works!

Brands need to uphold their values

Gen Z are also more aware of woke-washing and expect these values to be reflected in the brands they shop with. This generation is more likely to walk away from brands that don’t uphold their values; it has created an interesting paradigm whereby shopping has morphed into a more demographic hierarchy of power between brands and customers. This means that, more than ever, consumers now have the power to shape brands beyond their products.

Brands like H&M have incorporated these values into their their loyalty programs. The H&M loyalty program rewards customers for buying from its Conscious line, which are its more sustainable choices.

Whenever a member purchases from this line, they receive Conscious points – these can also be earned by recycling clothes they no longer use in its Garment Collecting program. Members who recycle receive points and a digital voucher.

As Gen Z are on the constant lookout for value but also a more sustainable future, members of H&M’s loyalty program can feel good for being part of a loyalty program that not only rewards them but also works toward a more sustainable fashion future.

These days, in order for brands to successfully appeal to the younger generation, they need to evolve beyond their products and services, and reflect the lifestyle of their consumers.

Brands can foster more loyal customers by thinking beyond loyalty points and rewards but appealing to consumers on a much more human level and thinking about loyalty as a relationship between their business and their customers.

Amazon

Amazon is often touted as a leading digital customer service brand: in 2020, it topped the UK’s list for best customer service. Its ability to personalise experience for its users often means that customers can usually find a solution by self-serving through its Help Centre. Talking to a human is often the last step of the journey. What this approach is missing is a helping human hand guiding customers to make the right purchase decision – it relies heavily on reviews from other customers, which often brings up issues around trust or personal taste.

Starling Bank

Starling provides a 365/24/7 contact centre through live chat in-app or on desktop and phone support should you get stuck, which is incredibly convenient! It goes beyond a traditional approach of waiting on the customer to make the first move by sending app notifications if something isn’t quite right, providing more immediate and proactive support. Being digital, Starling has the benefit of tracking customer data to understand how to improve its service. It has great reviews and although its approach isn’t particularly innovative (Monzo is similar), it’s incredibly successful.

Innovators

A hybrid approach combines the efficiency of digital with the reassurance, personalisation, and customisation of a human. Note: this isn’t sticking a digital solution on top of an offline experience, like Specsavers, or including an agent at the end of the digital journey, like Amazon.

Pros:

• A human can help the customer during the decision-making process, to ensure they make the right decision to minimise issues.
• The journey is seamless: the customer doesn’t leave the channel to get the help they need. There is no transferring between web and phone, or waiting on an agent to call back.
• Meets the customer’s needs at the stage they are at, bringing in expert support when necessary, for as long as necessary before passing back to digital.
• Has a higher conversion rate than digital alone.

Cons:

• This approach that relies heavily on customer data to implement. It can be hard to get right.
• Business need to invest in the right technology to make it work.
• It’s not necessary for all businesses, especially those that rely on more impulsive purchasing like Lululemon.

A hybrid customer service approach works well as human intervention is not the last step but there to support customer every step of the way. Therefore, it works best for businesses selling big ticket items and and customers doing more considered buying.

INNOVATORS LEADING THE WAY WITH HYBRID CUSTOMER SERVICE

Bionic

As a small business energy comparison site, Bionic recognises its customers need support at every stage of the process. Its customer service starts with the standard steps (address, business name, etc.) but to get a quote, customer get to speak to a real human. An agent gets in touch, in real-time, to talk customers through the quotes on their screen – customer don’t hang up and then wait for someone to call back, it’s all done fluidly. Bionic figured out the bit that only human-to-human interaction can do and built its service around delivering that with as much digital efficiency as possible.

Currys PC World

Currys connects online customers to live, in-store customer service experts. In 2020, Currys launched ShopLive, a service that connects customers to video chat with one of the its tech experts in-store, who help customers make the right decision when shopping, even from the comfort of their own homes. Customers are able to get a personalised service, remote or in-store if they wish, with the human touch for peace-of-mind when making big-ticket purchases.

Key takeaways

Poor customer service can strangle business growth – it costs 5 times more to attract new customers than to retain existing ones. Innovation in customer service and technology means that brands can unlock loyalty and growth by finding which approach works best for them.

In summary, there needs to be some offering of both human and digital services to appeal to all audiences and ensure brands are meeting its customers where they are.

To find out more about Future Platforms and how we help brands build a leading customer service, get in touch.

The loyalty card is dead – loyalty programs haven’t completely disappeared but they’ve vastly evolved. One generation driving this change is Gen Z. In order for brands to attract digital natives, they’ve started to engage with them digitally.

Today, younger generations expect a lot more from their brands. As well as receiving the customary rewards for being loyal to a brand, they also want that brand to fit into their life on an emotional and values level.

Customers between 18-24-years-old are the least likely to sign up to loyalty programs but are also the most engaged and loyal members once they do join – meaning if brands can lock them in, they’re like gold dust.

The loyalty card is dead – loyalty programs haven’t completely disappeared but they’ve vastly evolved. One generation driving this change is Gen Z. In order for brands to attract digital natives, they’ve started to engage with them digitally.

Today, younger generations expect a lot more from their brands. As well as receiving the customary rewards for being loyal to a brand, they also want that brand to fit into their life on an emotional and values level.

Customers between 18-24-years-old are the least likely to sign up to loyalty programs but are also the most engaged and loyal members once they do join – meaning if brands can lock them in, they’re like gold dust.

When Steve Jobs debuted the iPod on the 23rd of October, 2001, he said “With iPod, listening to music will never be the same again,” and he was right, but it has influenced so much more than the music industry:

Changed the consumer market

Though Apple wasn’t the first brand to release a portable music device, it did release the most influential and longest-running one. The reason why the iPod took the world by storm was because its creators analysed where its predecessors were failing to make an impact and ensured the iPod improved or provided these features.

With the availability of a large number of products that work to serve the same purpose, consumers make a choice to go with a product that serves their needs best. This is what the iPod did – it filled a niche in the market to become the product of choice. Through this, it raised the public’s expectations for digital products in general.

Influenced design

Apple’s design is instantly recognisable: sleek, minimalist, and polished. The iPod’s aesthetic can be attributed to some of its success. Its design was definitely ahead of its time, paving the way for one-touch customer experiences.

The design doesn’t have any non functional buttons or flashy unnecessary features. One button allows you to intuitively search your entire collection of music. The touch wheel was a UX innovation, designed to look like a compact disk or vinyl record. It’s so intuitive that it could be picked up by anyone without needing a “how to” guide. It seamlessly solves a problem of inaccessibility.

Changed the user experience

The iPod showed how a digital product could embody the concept of putting the user first in a way that prioritises usability and enjoyment. It sold a product by selling a solution to customer problems.

As Tony Fadell, the inventor of the Apple iPod, said “It’s easy to solve a problem that everyone sees, but it’s hard to solve a problem that almost no one sees.”

Innovations happen when you try to solve a customer frustration – although MP3s existed before the iPod, they had shortcomings, mainly in the form of storage, battery life, size and aesthetics which the iPod solved.

The iPod continues to be an inspiration in the technology industry; particularly when we look at its influence on design and user experience. Although the little music player might feel like a throw-back today, its impact on the world still resonates and we can all keep those lessons in mind.

The loyalty card is dead – loyalty programs haven’t completely disappeared but they’ve vastly evolved. One generation driving this change is Gen Z. In order for brands to attract digital natives, they’ve started to engage with them digitally.

Today, younger generations expect a lot more from their brands. As well as receiving the customary rewards for being loyal to a brand, they also want that brand to fit into their life on an emotional and values level.

Customers between 18-24-years-old are the least likely to sign up to loyalty programs but are also the most engaged and loyal members once they do join – meaning if brands can lock them in, they’re like gold dust.

When Steve Jobs debuted the iPod on the 23rd of October, 2001, he said “With iPod, listening to music will never be the same again,” and he was right, but it has influenced so much more than the music industry:

Changed the consumer market

Though Apple wasn’t the first brand to release a portable music device, it did release the most influential and longest-running one. The reason why the iPod took the world by storm was because its creators analysed where its predecessors were failing to make an impact and ensured the iPod improved or provided these features.

With the availability of a large number of products that work to serve the same purpose, consumers make a choice to go with a product that serves their needs best. This is what the iPod did – it filled a niche in the market to become the product of choice. Through this, it raised the public’s expectations for digital products in general.

Influenced design

Apple’s design is instantly recognisable: sleek, minimalist, and polished. The iPod’s aesthetic can be attributed to some of its success. Its design was definitely ahead of its time, paving the way for one-touch customer experiences.

The design doesn’t have any non functional buttons or flashy unnecessary features. One button allows you to intuitively search your entire collection of music. The touch wheel was a UX innovation, designed to look like a compact disk or vinyl record. It’s so intuitive that it could be picked up by anyone without needing a “how to” guide. It seamlessly solves a problem of inaccessibility.

Changed the user experience

The iPod showed how a digital product could embody the concept of putting the user first in a way that prioritises usability and enjoyment. It sold a product by selling a solution to customer problems.

As Tony Fadell, the inventor of the Apple iPod, said “It’s easy to solve a problem that everyone sees, but it’s hard to solve a problem that almost no one sees.”

Innovations happen when you try to solve a customer frustration – although MP3s existed before the iPod, they had shortcomings, mainly in the form of storage, battery life, size and aesthetics which the iPod solved.

The iPod continues to be an inspiration in the technology industry; particularly when we look at its influence on design and user experience. Although the little music player might feel like a throw-back today, its impact on the world still resonates and we can all keep those lessons in mind.

The loyalty card is dead – loyalty programs haven’t completely disappeared but they’ve vastly evolved. One generation driving this change is Gen Z. In order for brands to attract digital natives, they’ve started to engage with them digitally.

Today, younger generations expect a lot more from their brands. As well as receiving the customary rewards for being loyal to a brand, they also want that brand to fit into their life on an emotional and values level.

Customers between 18-24-years-old are the least likely to sign up to loyalty programs but are also the most engaged and loyal members once they do join – meaning if brands can lock them in, they’re like gold dust.

When Steve Jobs debuted the iPod on the 23rd of October, 2001, he said “With iPod, listening to music will never be the same again,” and he was right, but it has influenced so much more than the music industry:

Changed the consumer market

Though Apple wasn’t the first brand to release a portable music device, it did release the most influential and longest-running one. The reason why the iPod took the world by storm was because its creators analysed where its predecessors were failing to make an impact and ensured the iPod improved or provided these features.

With the availability of a large number of products that work to serve the same purpose, consumers make a choice to go with a product that serves their needs best. This is what the iPod did – it filled a niche in the market to become the product of choice. Through this, it raised the public’s expectations for digital products in general.

Influenced design

Apple’s design is instantly recognisable: sleek, minimalist, and polished. The iPod’s aesthetic can be attributed to some of its success. Its design was definitely ahead of its time, paving the way for one-touch customer experiences.

The design doesn’t have any non functional buttons or flashy unnecessary features. One button allows you to intuitively search your entire collection of music. The touch wheel was a UX innovation, designed to look like a compact disk or vinyl record. It’s so intuitive that it could be picked up by anyone without needing a “how to” guide. It seamlessly solves a problem of inaccessibility.

Changed the user experience

The iPod showed how a digital product could embody the concept of putting the user first in a way that prioritises usability and enjoyment. It sold a product by selling a solution to customer problems.

As Tony Fadell, the inventor of the Apple iPod, said “It’s easy to solve a problem that everyone sees, but it’s hard to solve a problem that almost no one sees.”

Innovations happen when you try to solve a customer frustration – although MP3s existed before the iPod, they had shortcomings, mainly in the form of storage, battery life, size and aesthetics which the iPod solved.

The iPod continues to be an inspiration in the technology industry; particularly when we look at its influence on design and user experience. Although the little music player might feel like a throw-back today, its impact on the world still resonates and we can all keep those lessons in mind.

A bit of friction in the right context can create a lot of confidence and reassurance for users. Journey mapping can help brands determine where to add friction: thinking about what the task is that the user is completing and what the outcome is that you’re trying to evoke.

The takeaway

Positive friction can play an important role in enhancing the user journey. When designed well, it can make experiences feel more secure and memorable.

When you’re designing your product, consider the following when it comes to friction. Does it:

1. Prevent mistakes the user might otherwise make?
2. Drive positive behavioural change?
3. Protect a user’s account or data?
4. Engage a user to make wait times feel shorter?
5. Give the user an opportunity to learn?

If the answer is yes, then include friction in your product.

We can discuss the role friction can play in your business. To design the right experience for your users and keep them coming back, get in touch with our team today.

The loyalty card is dead – loyalty programs haven’t completely disappeared but they’ve vastly evolved. One generation driving this change is Gen Z. In order for brands to attract digital natives, they’ve started to engage with them digitally.

Today, younger generations expect a lot more from their brands. As well as receiving the customary rewards for being loyal to a brand, they also want that brand to fit into their life on an emotional and values level.

Customers between 18-24-years-old are the least likely to sign up to loyalty programs but are also the most engaged and loyal members once they do join – meaning if brands can lock them in, they’re like gold dust.

When Steve Jobs debuted the iPod on the 23rd of October, 2001, he said “With iPod, listening to music will never be the same again,” and he was right, but it has influenced so much more than the music industry:

Changed the consumer market

Though Apple wasn’t the first brand to release a portable music device, it did release the most influential and longest-running one. The reason why the iPod took the world by storm was because its creators analysed where its predecessors were failing to make an impact and ensured the iPod improved or provided these features.

With the availability of a large number of products that work to serve the same purpose, consumers make a choice to go with a product that serves their needs best. This is what the iPod did – it filled a niche in the market to become the product of choice. Through this, it raised the public’s expectations for digital products in general.

Influenced design

Apple’s design is instantly recognisable: sleek, minimalist, and polished. The iPod’s aesthetic can be attributed to some of its success. Its design was definitely ahead of its time, paving the way for one-touch customer experiences.

The design doesn’t have any non functional buttons or flashy unnecessary features. One button allows you to intuitively search your entire collection of music. The touch wheel was a UX innovation, designed to look like a compact disk or vinyl record. It’s so intuitive that it could be picked up by anyone without needing a “how to” guide. It seamlessly solves a problem of inaccessibility.

Changed the user experience

The iPod showed how a digital product could embody the concept of putting the user first in a way that prioritises usability and enjoyment. It sold a product by selling a solution to customer problems.

As Tony Fadell, the inventor of the Apple iPod, said “It’s easy to solve a problem that everyone sees, but it’s hard to solve a problem that almost no one sees.”

Innovations happen when you try to solve a customer frustration – although MP3s existed before the iPod, they had shortcomings, mainly in the form of storage, battery life, size and aesthetics which the iPod solved.

The iPod continues to be an inspiration in the technology industry; particularly when we look at its influence on design and user experience. Although the little music player might feel like a throw-back today, its impact on the world still resonates and we can all keep those lessons in mind.

A bit of friction in the right context can create a lot of confidence and reassurance for users. Journey mapping can help brands determine where to add friction: thinking about what the task is that the user is completing and what the outcome is that you’re trying to evoke.

The takeaway

Positive friction can play an important role in enhancing the user journey. When designed well, it can make experiences feel more secure and memorable.

When you’re designing your product, consider the following when it comes to friction. Does it:

1. Prevent mistakes the user might otherwise make?
2. Drive positive behavioural change?
3. Protect a user’s account or data?
4. Engage a user to make wait times feel shorter?
5. Give the user an opportunity to learn?

If the answer is yes, then include friction in your product.

We can discuss the role friction can play in your business. To design the right experience for your users and keep them coming back, get in touch with our team today.

We’ve identified 5 traits to help brands create those experiences:

1. Easy to execute
2. Break down barriers
3. Create the context
4. Find the moment
5. Build the reps

We’ve previously discussed this in-depth in our webinar, Digital Products that Stick, which you can now watch on-demand.

Key takeaways

When you’re designing memorable digital experiences for your customers for brand loyalty and stand out appeal, you need branding, emotional touchpoints, and friction at the right moment.

By balancing both utility and differentiation, you can create long lasting engagement that creates high brand affinity.

To form distinctive interactions:

1. Highlight your brand values in your digital experiences.
2. Create emotional connections for users interacting with your product.
3. Include positive friction where needed.
4. Answer questions asked by your audience and solve these in a way that fits your brand.

This elevates your brand from another faceless service that could be found anywhere else, to one that customers trust, return to and even advocate for because they remember it. To find out how to bring this altogether for your brand, get in touch with our team today.

The loyalty card is dead – loyalty programs haven’t completely disappeared but they’ve vastly evolved. One generation driving this change is Gen Z. In order for brands to attract digital natives, they’ve started to engage with them digitally.

Today, younger generations expect a lot more from their brands. As well as receiving the customary rewards for being loyal to a brand, they also want that brand to fit into their life on an emotional and values level.

Customers between 18-24-years-old are the least likely to sign up to loyalty programs but are also the most engaged and loyal members once they do join – meaning if brands can lock them in, they’re like gold dust.

Disruption happens when new entrants to a sector challenge incumbents’ existing businesses, approaching existing markets in new ways and leveraging that advantage to compete, despite starting with fewer resources.

Around the world, the COVID-19 pandemic has driven change in many industries, but few as profoundly as the casual dining sector. Lockdowns in many countries kept many restaurants closed, leading to a rapid shift to delivery and accelerated digital transformation. However, the resulting changes in customer expectations, interests, and values over the course of the pandemic have been equally significant. This has created unique opportunities for new entrants.

To successfully compete in a crowded market, challengers have focused on:

• Significantly improving the user experience
• Operating with a unique business model to monetise audiences in a different way
• Offering more affordable items to serve a broader market
• Addressing previously underserved and undervalued segments

We’ve spotted these characteristics at play in 5 disruptive trends emerging in the quick-service restaurant industry. Here’s who’s coming for your lunch, and how they’re innovating to get ahead:

1. Blend physical and digital experiences

Customers are increasingly spending more time online, and digital channels have become integral to the dining experience. Restaurants that can leverage this are emerging as the biggest winners.

Blending physical and digital experiences does not necessarily require expensive technical solutions; for smaller players, using existing tools and channels can be an effective way to achieve this:

An initiative to promote independent street food stands in Mexico City crowdsourced locals’ favourite vendors via Twitter and used Google’s My Maps feature to create a shareable map with their locations.

As well as boosting business, companies who invest in their digital channels have greater control over the end-to-end experience, and can do even more to provide outstanding customer service. For example, Domino’s Pizza offers the option to have food delivered to your car when ordering through its app; by tracking you as you travel, they can ensure that the pizza is piping hot when you collect it.

2. Go where the people are

Online communities form around things that people find interesting: quirky ideas, captivating content, and favourite personalities. The savviest new challengers in the restaurant industry have emerged to serve these communities, rather than attempting to build new followings from scratch:

TikTok Kitchen, set to launch in the US in March 2022, will let people purchase favourite food hacks that have gone viral on the platform, including baked feta pasta, corn ribs, and cheese-covered, air-fried pasta chips. No physical locations are planned; orders will be placed online, produced by third-party restaurants, and sent out for delivery in TikTok Kitchen branded packaging.

Virtual Dining Concepts, the marketing company behind TikTok Kitchen, connects brands and influencers with large online followings to “ghost kitchens” who can manage the fulfilment of orders.

When YouTuber MrBeast shared the video I Opened A Restaurant That Pays You To Eat At It to 50 million subscribers, the Virtual Dining Concepts model enabled MrBeast Burger to simultaneously open 300 digital-only locations across the United States. No money was spent on traditional marketing channels, but most locations sold out of food on the first night.

3. New business models can maximise opportunities to reach customers

Many restaurants pivoted to delivery and meal subscriptions as COVID-19 forced them to find other revenue streams. Continuing to experiment with different business models and pricing strategies is enabling restaurants to maximise the value of their physical locations in the new normal:

For some, capacity has become more constrained. Hospitality workers have left the industry in record numbers, leading to reduced opening hours and covers, with fully booked restaurants turning away customers. US steak restaurant Rib & Chop House turned this to their advantage, launching a subscription programme that lets members jump the queue for $50 per month.

Taco Bell has used digital channels to streamline its subscription offering and ensure that it does not generate excessive operational costs. Only available through the app, for $10 the Taco Lover’s Pass unlocks a special limited menu from which customers can choose one taco a day for 30 days for collection at a restaurant.

4. Do less to focus more deeply on what matters to customers

With the rise of pop-ups and food trucks, customers have become accustomed to limited menus offering a small number of signature items, but they now expect each one to be truly special. Leaning into what differentiates you and paring back what you offer to focus on what you do best is a great way to ensure that your business is competitive too:

Taster is a virtual restaurant company whose five restaurant brands are only available for delivery; by taking away the physical storefront it can operate from cheaper and smaller locations near to areas with high demand to get food into people’s hands more quickly and cost-effectively. Free to fully optimise for delivery, its brands have menus designed around types of food that are quick to prepare and travel well.

5. Live your values

COVID-19 outbreaks at meat-packing plants and supply chain constraints have forced customers to reflect more deeply on the origins and impact of their food, accelerating the pre-existing trend for plant-based and climate-conscious eating:

Challengers actually have the advantage here, as they have greater freedom to focus on sustainability and establish a more genuine connection with customers. Ready Burger has seized this opportunity, offering an entirely plant-based McDonalds-style menu. Crucially, it also competes with McDonalds on price, offering vegan burgers for as little as 99p. They were able to leverage their cult following to raise capital for further expansion through crowdfunding, achieving their £1.5M target in just a few hours.

We’ve helped companies like Domino’s Pizza grow into leading digital-first businesses by delivering products that differentiate them. To learn more about how your business can leverage its strengths in a competitive and rapidly transforming landscape, get in touch with our team today.