Generic rewards deliver generic and very average results. This is very true of mass market loyalty schemes that fail to inspire the consumer.
Rewards management is often not recognised as a requirement by loyalty scheme operators. Customers are left to select from a standard catalogue of reward options or navigate a cumbersome process to exchange their loyalty currency in return for discounts of coupons. Unsurprisingly, this can lead to customer inertia and boredom with a programme. As such, LCUK advocate, active Rewards Management.
The very best loyalty schemes address this requirement through the regular communication of reward options. Reminding customers what they can achieve, using data to signpost the most relevant options, is a popular method to drive up redemption rates and hence customer engagement.
However, the most interesting schemes take active management to another level, offering limited redemption offers that are available for a defined period of time and or on a ‘first come, first serve’ basis. This approach is proven to raise interest, awareness and engagement in a loyalty scheme leading to some of the most effective loyalty schemes in operation.
LCUK will recommend a systemic approach toward reward management that will challenge the scheme operator to meet ever increasing rates of redemption – the true measure of successful loyalty schemes.