Consumers today want the ability to choose, be it the wireless device they use for work and play, the self-selection of digital or traditional shopping channels and options, or the ability to choose among different gift cards in loyalty and incentive programs.
The better the choice, the more apt the person is to be active in the loyalty or incentive program, pursuing the desired behavior in order to earn the reward. Loyalty program participation is a problem for many companies. According to the Colloquy Loyalty Consensus released in February 2015, the average household is “involved” in 29 programs, but active in only 12.1
“A huge challenge is differentiation. Most programs look very similar to their competitors and even to programs in other verticals.”
– Barry Kirk, Solution Vice President – Loyalty Strategy at Maritz Motivation Solutions.
“When instituting a loyalty program, the goal is to engage your customer and give them a reason to transact with your organization more often,” adds Erin Raese, COO and Editor-in-Chief, Loyalty Management at Loyalty360. “Earning points builds engagement, redeeming points creates an additional positive experience. Therefore, it’s important to make sure your rewards selection is attractive to your customers. A way to do this is to provide gift cards to popular merchants where your customers like to shop.”
Gift cards are popular because the value is easy to determine and they know what they are truly receiving, whereas the value of travel or merchandise rewards are more ambiguous, Raese adds.
Continue reading to learn more about what the experts have to say about:
- The transition to digital
- The importance of incentive choice