Rewards Everywhere: Perks of A True Loyalty Reward Program
One of the best ways companies can drive repeat purchases is through implementing a loyalty rewards program, a system by which multiple purchases are rewarded with gifts that are redeemable at several incremental points levels. It’s a clever scheme that’s been proven to work, with a recent survey from TechnologyAdvice stating that people enrolled in customer loyalty programs were 82.4% more likely to shop at stores that offered similar programs. And while loyalty rewards programs are fairly common they still remain somewhat lackluster, offering consumers either rewards unrelated to them or setting unattainable goals by which no buyer could ever hope to reasonably achieve. Such unrealistic terms only succeed in alienating the consumer and it’s easy to see why—after all, shouldn’t the point of a loyalty program be to gift consumers as frequently as possible?
It’s only through looking at the companies that manage to embody the idea of reciprocity—creating a sense of equal give and take so that neither party feels taken advantage of—that we begin to get an idea of what works. Lancôme, for instance, recently sparked a flurry of responses in response to their new loyalty rewards program, one that rewards users not only for things like repeat purchases, but for brand engagement through social media sites as well. Any action from a mention on Instagram to a Twitter follow can be rewarded, revealing that Lancôme’s loyalty program can accommodate multiple types of rewards with ease. In this way, Lancôme gains valuable insight as to what content is most engaging while simultaneously offering users items like free samples, perpetuating a happy cycle of give and take between brand and user.
Lancôme embodies the idea that the most successful rewards programs are ones that tailor their rewards to the wants and needs of their consumers, rewarding them for any interaction with the brand and not just purchase—a key selling point in today’s increasingly connected world.
The next level for successful reward programs is to allow customers to convert their points into real rewards as frequently as possible.
Ifeelgoods crafted a loyalty campaign with Coke through which users were able to redeem their Coke points for gaming currencies. Because the Coke rewards program offered gifts at small, multiple increments, users could gift themselves as often as they’d like, leading to an average of 16 times more redemptions per user and a whopping 95,000 transactions overall. As users could now choose to redeem their gifts from among an array of rewards offered at lower increments, they chose to express their satisfaction by redeeming far more often. Frustrated by anachronistic loyalty programs in which users diligently save up points in the hopes of redeeming one big reward, the modern consumer is more evolved, choosing to redeem smaller rewards more frequently than ever before instead.
This is what we aim to achieve at Ifeelgoods: the happy balance. By offering users small digital rewards that are instantly redeemable, brands can reward users for any desirable action more frequently, driving higher participation rates among users and leading to happier, more satisfied customers. The choices are endless, with options including songs from iTunes available for instant streaming, online subscriptions to the New York Times, Skype credits…instantly accessible gifts that consumers are guaranteed to love.
We’re here to give people what they want and to give often. No more saving up points for years and years in the hopes that a fitting gift will come along—this time it’s the gift of your choice, gifted at the time and frequency that’s best for you.
by Marie Lhermitte