Loyalty programs are key to customer satisfaction and retention. Yet despite this, consumers around the world have notched up $48 trillion in unspent loyalty points.
So what’s the solution? We think that offering creative new ways to earn and redeem points is key to maintaining an active, engaged membership base. By getting innovative with point redemption models, brands can create more opportunities for meaningful engagement with both high value and modest points earners.
Here are three inventive strategies to drive more point burn and strengthen loyalty.
Charity points spending: empower users to create change
Sometimes members don’t know what to do with their points. Items and experiences that are currently available may not be captivating them. Charity points spending allows members to use their points in a meaningful way.
Southwest Airlines’ loyalty program members annually donate millions of points to many different causes. Points are being redeemed more effectively and charitable organizations receive crucial funding for their missions and initiatives.
Southwest makes it easy for Rapid Rewards members to donate points to causes they care about. In 2020 alone, members donated over 27 million points to over 300 charities. This engaged members who wanted to use points to give back, while providing substantial value to nonprofits.
Points contests: keep modest points earners engaged
Keep modest points earners tuned in to your program by giving them the chance to win big. Points contests allow members to buy ballots for five points each. For example, each ballot has the opportunity of winning 100,000 points. Modest point earners have engaged heavily in these types of contests.
The Maple Leaf Foods rewards program generated over 40,000 entries for a single points contest. Their “Mega Points Giveaway” allowed members to enter by redeeming 50 points for one entry. This gave a chance to win the grand prize of 250,000 points. Points contests ensure optimum program ROI by keeping members of all levels engaged.
In-event program: capture attention in real-time
The holy grail of customer engagement is capturing attention when members are at branded events. Unique in-event programs give real-time customers reward points and cash offers at events, conventions, concerts, and more.
Some examples of successful real-time rewards programs are WWE offering in-arena purchasing and MLB offering in-game auctions. Members at these events get special engagement with their favorite brands.
In-event and real-time reward programs create memorable brand interactions. This strengthens loyalty by making members feel uniquely valued and engaged in the moment.
Redemption marketplaces – the gateway to maximizing loyalty program ROI
The most successful loyalty programs offer robust redemption marketplaces that provide endless options to keep members engaged. Dynamic redemption catalogs with auctions, contests, donations, and real-time offers are proven to increase point burn and prevent member drop off.
A rich and dynamic redemption marketplace is the gateway to maximizing loyalty program ROI through optimized engagement and point redemption. Contact Commerce Dynamics today and set the wheels in motion for a more rewarding loyalty experience for your customers and a boost in your program’s success.