Customer loyalty is a coveted but increasingly elusive outcome for brands. Loyalty programs have long been a cornerstone of customer retention, but with over half of all loyalty memberships in the US now inactive, it’s clear that traditional approaches need a shake-up.
Brands that want to stay relevant must offer new ways for customers to engage with their loyalty program. With the right mix of dynamic commerce and unique engagement tools, existing loyalty programs can be revitalized and fortified.
Auctions maximize redeemed points
Auctions allow brands to maximize redeemed points by realizing the true market value of what a member would be willing to spend on a reward. Hilton Honors has had huge success offering rewards to customers using an auction format. Dynamic pricing has led to surges in points spending and a stream of very positive testimonials linked to the program.
The Hilton Honors points auction program allows members to bid on exclusive rewards like concert tickets, VIP experiences and unique travel opportunities. By using an auction model, Hilton is able to maximize the value of the rewards to match what members are willing to spend, while allowing members to use more points for desirable experiences.
Since launching the auction program in 2017, Hilton has seen a double digit increase in point redemption as members engage more frequently to bid on dream rewards. Members cite the thrill of competing in the auction and winning unique prizes as a major draw of the program.
Group-buy events rally engagement
Unique redemption events that rally members together to activate a great deal encourage customers to involve their whole network with a loyalty program. Safeway and AirMiles had significant success over six years offering daily deals at modest point costs using a group-buy model.
The initiative allows members who recruit a group of 40 people to buy a particular reward, like a Schwinn Bike for 2,000 air miles, to trigger the deal for the entire group. This group-buy model increased the average cart size for Safeway and the engagement on social platforms was very strong.
By innovating redemption models to include auctions and group-buy events, brands can create more opportunities for meaningful point spend. This keeps members engaged, provides community engagement, and brings renewed life into loyalty programs.
Let’s get members tuned back into your loyalty program
If you’re looking to add zest to your loyalty program, it starts with a redemption marketplace – the gateway to unparalleled customer engagement, increased participation, and a thriving brand community.
Embrace innovation, harness the power of dynamic commerce and make your loyalty rewards truly sizzle – get in touch with Commerce Dynamics today and let’s reshape your loyalty program for a more rewarding future!