Summary: Importance of women in loyalty programs, driven by their substantial control over consumer spending and influence on purchasing decisions • Shift from transactional to emotional loyalty • Women's preferences for personalized experiences and community engagement • Cultural and regional nuances in loyalty program design • Existing women-focused loyalty programs.
GLOWhy do women matter for loyalty programs?
Women now drive the world economy and spending. Multiple studies by Harward Business Review, Wise, Rwasi, etc. show that women control about $30bn of annual consumer spending, which is expected to reach $40 trillion by 2030 alone[1].
Moreover, women drive 70-80% of all consumer purchasing through buying power and influence, and by 2028, women across the globe will own 75% of the discretionary spending, making them the world’s greatest influencers[2]. Overall, women represent a growth market bigger than China and India combined—more than twice as big.
Not only do women tend to be more involved with loyalty programs and are vital decision-makers both in retail and travel due to their social roles, but research indicates that women are also more loyal to brands than men[3]. Hence, women-focused loyalty strategies and campaigns are paramount to growth.
Should loyalty programs approach women differently: key differentiating factors for loyalty programs and engagement
Women are transitioning from the “invisible” class, and companies have started to recognise data bias in the design of products and services, ignoring women’s needs and preferences[4]. Recent findings suggest that customer loyalty of men and women can be inspired by different motives[5]. Women have distinct preferences, and their behaviour and underlying triggers warrant special attention from loyalty programs.
Recent psychology studies echoed and supported the major trend of transitioning from pure “transactional loyalty” (points, tier status, etc.) to “emotional loyalty.” These studies indicated that men and women assign different values to loyalty programs’ benefits and that loyalty programs must take into account women’s preferences.
The key differentiating factors for ‘She-loyalty’ are:
- different emotional triggers and emotional response
- value on relationships, community, empowering and ESG
- personalisation and multiple social roles and decision-making
- simplicity, flexibility & convenience of product and customer care
- gamification “women-way”
- cultural and regional aspects of women-focused loyalty.
Emotional Loyalty: women prefer different benefits vs. men
Women, as consumers, often navigate purchasing decisions through a lens of emotional connection and relational dynamics. Historically, loyalty programs focus on tangible incentives such as discounts, points, or exclusive offers. Understanding and leveraging emotional loyalty can be a game-changer for businesses seeking to capture the hearts and minds of female consumers. The recent launches of “Brilliant by Langham” and Accor’s and Emirates’ focus on emotional and experiential loyalty are good examples of how traditional loyalty programs are transforming to embrace emotional loyalty.
2012 research by V. Melnik and Stijn M. J. van Osselaer into gender differences in consumers’ responses to loyalty programs uncovered a coherent pattern of gender differences in how customers respond to different types of psychological rewards in the context of loyalty programs. Men responded “more positively than women to loyalty programs emphasising status, but only when their higher status is highly visible to others”. In contrast, women responded “more positively than men to loyalty programs that emphasise personalisation, but only for personalisation in private settings.” [6]
Emotional loyalty transcends mere transactions; it encompasses a profound sense of trust, affinity, and resonance with a brand’s values, purpose, and ethos. For women, this emotional bond often extends beyond the product or service to encompass the overall brand experience, including customer service, brand messaging, and social responsibility initiatives.
Multiple research by Nielsen, HBR, Boston Consulting Group, and Edelman Trust Barometer indicate that women prioritise trustworthiness, authenticity, and empathy when engaging with brands. They seek companies that align with their values, demonstrate a commitment to social causes, and prioritise customer satisfaction[7]. Loyalty programs that tap into these emotional triggers can cultivate deeper connections and foster long-term loyalty among female consumers.
Value of relationships and community, empowering and ESG
Moreover, women often value community and connection in their consumer journey. Loyalty programs that foster a sense of belonging, inclusivity, and camaraderie can resonate deeply with female consumers. Creating opportunities for engagement, collaboration, and peer support within the loyalty program ecosystem can transform it into a vibrant community where women feel empowered and inspired.
Incorporating elements of storytelling and narrative into loyalty programs can also enhance emotional engagement. Women are more drawn to brands that tell compelling stories, evoke emotions, and spark meaningful conversations. By weaving narratives that resonate with their values, aspirations, and life experiences, brands can forge deeper connections and elicit a sense of emotional loyalty among female consumers.
However, it is essential to approach emotional loyalty features with authenticity, sincerity, and integrity. Women are adept at discerning genuine connections from superficial marketing tactics, and any attempt to manipulate emotions or exploit vulnerabilities can erode trust and undermine loyalty. Building authentic relationships based on transparency, empathy, and mutual respect is paramount in cultivating lasting emotional loyalty.
Recent research looks at how companies can rethink their approach to marketing, innovation, and designing services for women. The data shows that just paying lip service is detracting women, encouraging disloyalty, and causing fatigue.” [8]
Personalisation and women’s multiple social roles
One key aspect of emotional loyalty is feeling valued and appreciated as a customer. Leveraging technology and data analytics can give brands insights into female customers’ unique preferences and behaviours. By harnessing data-driven personalisation and predictive analytics, loyalty programs can deliver tailored experiences, anticipate needs, and enhance the customer journey, thereby deepening emotional loyalty.
Women respond positively to personalised experiences and gestures, recognising their preferences, needs, and aspirations. Tailoring loyalty programs to offer customised rewards, personalised communications, and thoughtful surprises applies to both men and women. Still, in the case of women, it can trigger greater emotional resonance of the brand and strengthen the bond.
Moreover, around the world, while continuing to shoulder the lion’s part of the household burdens (and household-related purchasing decisions), women have increasingly taken on a variety of roles they play – adding parent and caregiver, employee, leader, entrepreneur, community member as well as sports enthusiast to name a few. Each of these roles triggers different emotional and economic responses and decision-making. Hence, loyalty programs need to evolve their personality not just to the level of “individual member mapping” but also context and “situational member mapping”, which combines gender and situational role preferences of the loyalty program member.
Simplicity, convenience, and flexibility of product and customer care
Leveraging technology and data analytics can give brands insights into female customers’ unique preferences and behaviours. By harnessing data-driven personalisation and predictive analytics, loyalty programs can deliver tailored experiences, anticipate needs, and enhance the customer journey, thereby deepening emotional loyalty.
Brands must approach loyalty programs and app design, considering simplicity, flexibility, and convenience, which appeal primarily to women. Typically “short on time” and with less technical expertise than men, women place much greater value on the simplicity and convenience of loyalty programs and apps.
- Ease of Use: Women, like all consumers, appreciate user-friendly interfaces that are intuitive and easy to navigate. Simplifying the loyalty app ensures that women can quickly understand how to earn rewards, redeem benefits, and navigate different features without encountering confusion or frustration.
- Time Constraints: Many women juggle multiple responsibilities, including work, caregiving, and household tasks. A simple loyalty app allows them to engage with the program efficiently without investing significant time or effort in learning complex features or processes.
- Accessibility: Women come from diverse backgrounds and may have varying levels of familiarity with technology. A simple loyalty app ensures accessibility for a broader range of users, including those who may not be tech-savvy or comfortable with complicated interfaces.
- Clarity of Rewards: Simplifying the loyalty app helps ensure that the benefits and rewards are clear and easy to understand. Women appreciate transparency regarding how they can earn rewards, what those rewards entail, and how they can be redeemed.
Gamification “women-way”
Widespread assumption that women do not focus on gamification in loyalty programs is not entirely accurate. While it’s true that there may be variations in how men and women engage with gamified experiences, attributing a lack of focus on gamification solely to women overlooks the diverse preferences and behaviors within this demographic.
Simply, women tend to engage differently with gamification in loyalty programs:
- Preference for Different Game Mechanics: Women may have different preferences when it comes to the types of gamified experiences they enjoy. While some women may be drawn to competitive challenges and leaderboards, others may prefer collaborative activities or narrative-driven quests. Tailoring gamification strategies to accommodate diverse preferences within the female demographic can enhance engagement and satisfaction.
- Value of Social Interaction: Women often place a high value on social interaction and community engagement. Gamified experiences that foster collaboration, teamwork, and peer-to-peer interaction may resonate more strongly with female consumers. Incorporating social elements into loyalty programs, such as shared goals, group challenges, and community forums, can enhance the overall experience for women.
- Preference for Intrinsic Rewards: Research suggests that women may be more motivated by intrinsic rewards, such as recognition, achievement, and personal fulfillment, rather than external incentives. Gamification strategies that focus on rewarding progress, unlocking achievements, and celebrating milestones can appeal to women’s desire for self-improvement and personal growth.
- Desire for Meaningful Engagement: Women often seek out experiences that are meaningful, authentic, and aligned with their values. Gamified loyalty programs that incorporate storytelling, purpose-driven missions, and opportunities for charitable giving or social impact can resonate more deeply with female consumers. By connecting gamification to meaningful outcomes and social causes, brands can foster stronger emotional connections and loyalty among women.
- Prioritization of Convenience and Utility: Women, like all consumers, value convenience and utility when engaging with loyalty programs. Gamified experiences that are seamlessly integrated into everyday activities, easy to participate in, and offer tangible benefits or rewards can appeal to women’s desire for practicality and efficiency. Ensuring that gamification enhances, rather than detracts from, the overall user experience is key to driving engagement among female consumers.
While women may engage with gamification in loyalty programs differently than men, it’s essential to recognize and accommodate the diverse preferences, motivations, and behaviors within this demographic. By understanding women’s unique needs and interests, brands can develop gamification strategies that resonate more effectively and drive greater engagement and loyalty among female consumers.
Cultural and regional aspects of women-focused loyalty
While greater economic involvement and decision-making are an overarching trend worldwide, designing and running loyalty programs in some regions requires a nuanced understanding of women’s cultural norms, values, and consumer behaviour in these regions.
- Modesty-Centric Rewards: In many Middle Eastern and Asian cultures, modesty is highly valued. Loyalty programs could offer rewards that align with this cultural value, such as exclusive access to modest fashion collections, beauty products with natural ingredients, or wellness experiences that promote holistic health.
- Family-Centric Benefits: Family plays a central role in the lives of many women in the Middle East and Asia. Loyalty programs could offer benefits that cater to family needs, such as discounts on family-friendly activities, special offers for children’s products, or rewards for spending quality time with family members.
- Community Engagement: Community ties are vital in many Middle Eastern, Asian, African, and Hispanic cultures. Loyalty programs could incorporate community-focused initiatives, such as partnerships with local charities or events that promote social causes important to women in these regions. Rewards could be offered for participation in community service or charitable donations.
- Cultural Celebrations: Regional cultures have rich traditions and festivals. Loyalty programs could offer special rewards or promotions for cultural celebrations, such as Eid, Diwali, Hanuka, Lunar New Year, or local festivals. This could include exclusive discounts on traditional clothing, festive decorations, or holiday-themed experiences.
- Exclusive Women’s Events: Hosting exclusive events tailored to women’s interests and needs can be valuable to loyalty programs. These events could include workshops on self-care, career development, financial literacy, and networking opportunities with female leaders and influencers.
- Digital Inclusion: In regions where access to technology may vary, it’s essential to ensure that loyalty programs are accessible to women across different socioeconomic backgrounds. This might involve offering multiple channels for participation, including mobile apps, SMS-based rewards, or in-person enrollment at physical locations.
- Localised Marketing: It is crucial to tailor marketing messages and communication channels to reflect cultural sensitivities and preferences. Loyalty programs should use language, imagery, and storytelling that resonate with women in each specific region, acknowledging their diverse identities and experiences.
- Privacy and Security: Given the importance of privacy and security in many Middle Eastern and Asian cultures, loyalty programs should prioritise protecting personal information and offer precise opt-in/opt-out mechanisms for data sharing and communication preferences.
Existing women-focused or women-only loyalty programs:
- Huda Beauty Angels Rewards: Huda Beauty, a cosmetics brand founded by beauty influencer Huda Kattan, offers the Angels Rewards program exclusively for female customers. Members earn points on purchases, receive birthday gifts, and gain access to exclusive offers and events.
- Curves Complete: Curves, a fitness franchise primarily for women, offers the Curves Complete program. It combines exercise, meal planning, and coaching to help women achieve their fitness and weight loss goals. Members receive personalised support and guidance throughout their journey.
- Sorority Women’s Health Initiative: Some healthcare organisations or insurance providers may offer loyalty programs tailored to women’s health needs. These programs might offer rewards or incentives for participating in preventative care, screenings, or wellness activities.
- Sephora Beauty Insider: Sephora’s Beauty Insider program offers various benefits to its members, including exclusive discounts, birthday gifts, beauty classes and events, and early access to new products. While it’s not exclusively for women, it targets beauty enthusiasts, a demographic in which women are the primary consumers.
- Lululemon’s Sweat Collective: This program is designed for fitness instructors, trainers, athletes, and women. Members receive discounts on merchandise, exclusive events, and early access to new product launches, catering to their active lifestyles.
- ULTA Beauty’s Ultamate Rewards: ULTA Beauty’s loyalty program, Ultamate Rewards, offers points for purchases that can be redeemed for discounts on future purchases. Members also receive birthday gifts, access to exclusive sales, and bonus point promotions, all tailored to beauty enthusiasts, a significant portion of whom are women.
- Plenti by American Express: Plenti is a multi-brand loyalty program that allows members to earn points on purchases at various retailers and then redeem those points for discounts or rewards. While not exclusively for women, it partners with brands catering to diverse interests, including women’s fashion, beauty, and wellness.
- FabFitFun: FabFitFun is a subscription box service that offers beauty, wellness, and lifestyle products tailored to women’s interests. While not a traditional loyalty program, subscribers receive seasonal boxes filled with full-sized products, exclusive discounts on additional purchases, and access to members-only sales and events.
- Target Circle: Target Circle is Target’s loyalty program that offers personalised deals, birthday rewards, and 1% back on purchases that can be redeemed on future Target purchases. While not exclusively for women, Target’s diverse product offerings appeal to many consumers, including women who are often primary household shoppers.
Loyalty programs are on the path to transcend transactional exchanges and cultivate profound emotional connections with female consumers. By understanding and addressing the unique drivers of emotional loyalty, brands can unlock new opportunities for engagement, differentiation, and sustainable growth. By prioritising authenticity, personalisation, and community-building, businesses can forge deeper bonds and inspire unwavering loyalty among women for years to come.
[1] https://wise.com/gb/blog/purchasing-power-women#:~:text=Global%20consumer%20data%20company%20Rwazi%27s,has%20catching%20up%20to%20do.
[2] https://www.nielsen.com/insights/2020/wise-up-to-women/
[3] https://www.marketingcharts.com/industries/media-and-entertainment-71792#
[4] Caroline Criado Perez, Invisible Women: the Sunday Times number one bestseller exposing the gender bias women face every day, 2020.
[5] Melnyk, V., van Osselaer, S. M. J., & Bijmolt, T. H. (2009). Are women more loyal customers than men? Gender differences in loyalty to firms and individual service providers. Journal of Marketing, 73(4), 82–96.
[6] https://link.springer.com/article/10.1007/s11002-011-9160-3 –
[7] https://hbr.org/2009/09/the-female-economy; https://www.nielsen.com/insights/2021/beyond-martech-building-trust-with-consumers-and-engaging-where-sentiment-is-high/; https://www.edelman.com/trust/trust-barometer
[8] https://www.nielsen.com/insights/2020/wise-up-to-women/
