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BizReport : Loyalty Marketing : October 10, 2014

Top 3 tips to improve loyalty program engagement

Brands and retailers need to offer rewards that their customers are already collecting to make them relevant and enticing. The best way to do this is to partner with a multi-currency partner to allow consumers a variety of options. There is an enormous opportunity for retailers to attract customers, potentially millions of them, simply by dangling "the carrot" of everyday earning opportunities.

by Kristina Knight

Nearly half of the respondents to a recent Points survey focused on loyalty/rewards programs found 48% of shoppers say they will shop at a different store to earn points/miles - suggesting that accumulating points is a far bigger influence on spending among rewards members than either convenience or brand loyalty. So combining everyday earning opportunities with personalized, "extraordinary" earning opportunities will keep customers engaged and interested.

Here's how brands can increase program engagement:

• Allow for small earning increments

"Not every consumer wants to earn rewards through high-end purchases. Loyal, engaged customers actually prefer earning points/miles in smaller increments, when they are shopping for everyday items at their supermarket, pharmacy, clothing store or gas station," said Tim Moulton, Vice President, Points Business Solutions & Business Development.

• Allow everyday earners to 'bank' points for bigger goals

"More than 80% of these consumers (we call them "everyday earners") set aspirational goals when it comes to their loyalty programs, such as accumulating points or miles to redeem for something exotic - like a trip or even a big-ticket item like a big-screen TV. Giving these everyday-earner consumers the opportunity to earn gradually and consistently over time is important," said Moulton.

• Increase the frequency

"Consumers will go out of their way to earn more points and miles when presented with these opportunities, even switching stores to do so - so offer them rewards, and do so frequently," said Moulton.

Image via Shutterstock

Tags: loyalty marketing, loyalty program tips, Points, reward marketing

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