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BizReport : Loyalty Marketing : April 27, 2015

What drives reward program spending

As many standalone loyalty programs change the requirements for earning rewards or achieving certain levels, consumers are looking for ways to maximize the utility and value of their rewards. One expert offers insight into what customers really want.

by Kristina Knight

Kristina: Why do customers want more possibilities for using, earning and redeeming their points/miles than ever before?

Christopher Barnard, President and Co-Founder, Points: Today's customers want rewards that are flexible, and they want their collective spending to deliver something valuable in return. They want to accumulate points or miles quickly, without having to wait months or years to reach a specific threshold or goal. And they want the ability to pool, gift, and transfer rewards so that they collectively result in something satisfying and meaningful.

Kristina: What drives spending behavior in retail or travel programs?

Christopher: The consistent behaviors that consumers describe in our surveys touch on convenience, perceived value, the ease and frequency with which users can earn rewards based on their spending, and flexibility in how to redeem and use their rewards. Time and again, we've found they want to reach goals quickly, so their spending and rewards need to be relevant and in synch with their everyday buying routines, preferences and habits.

More from Christopher and Points later this week, including what shoppers will change for a loyalty program.

Image via Shutterstock

Tags: loyalty marketing, loyalty program trends, Points, rewards marketing

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