Choice has become such a buzz word and so very ingrained in our vocabulary: good choice, bad choice, too much choice, no choice… whatever we connect it with, choice is everywhere not just in our language but also in our lives. It is said that we make around 35,000 conscious and subconscious choices and decisions every single day! We take for granted having so many choices in life, but when we have no choice in a matter then we remark upon its absence in a negative way.
This is exactly how many members of loyalty programs feel today. We should not forget that each program member is also a consumer who is offered a seemingly unlimited choice in their everyday life to conveniently decide with one click what to get, do, or experience. Unfortunately, the reality that this same consumer is confronted with by their loyalty program is often a very different one. In fact, many members today simply forget that they are indeed part of a specific loyalty program, because the possibility to interact with it in a beneficial way for them is just not appealing. As a consequence, the program and with it all the effort and work your business puts into it becomes less effective or enticing. But what if I promise you now, that by adding choices, you can completely turn this around?
So, let’s face the facts. Yes, it seems that the “buy x, get y” traditional cards available benefit your customers, but is it really cutting it for most of them? Asking 100 members of your program what they actually would like to do with their points can give you just as many answers. So how can you actually satisfy your customers that have the same expectation to achieve with your points what they would be able to get in their everyday life with cash? The answer is by offering more choices in your loyalty plan. Something that is very hard to change quickly with your traditional loyalty cards.
First of all, it is important to offer a diversified and compelling range of rewards for your program. This can be challenging, but is absolutely possible. By moving to a digital loyalty plan like the LYLTY app, your options for rewarding your customers can be greatly enhanced.
One aspect is to deliver the best possible experience for your member in your reward program. Think of buying a Louis VuittonTM bag in duty free while rushing to catch your next flight, or, shopping for it in the flagship store on the Champs-Elysee after strolling the streets of Paris with your family. While the price quite possibly is the same or maybe even less in duty free, the added value one associates with the service and environment of the actual purchase, is literally priceless. By adding experiences to your program, customers will then be happy to invest that little extra, if necessary, for a truly unique and special experience that they can enjoy.
Furthermore, statistics show that a customer today is ready to accept a lower cost per point in exchange for receiving more choice and convenience. So go beyond the traditional redemption options and provide your consumer with a greater range of choices.
Give them access with their points to redeem on experiences as well as more than just a single item. By letting your customers build points towards multiple rewards, not only do you have an engaged and loyal program member, they will also interact (spend!) with you more often.
In summary, offering choice, on the one hand, increases the experience or qualitative element towards your members, as it adds value, improves the perception of your program and results in more member interaction, engagement and satisfaction. On the other hand, it has a significant quantitative impact on your program. This offered choice provides you with the strategic leverage to manage your redemption cost and the entirety of your program in a smart and beneficial way that leads to a reduction of customer churn, and persists long term.
Are you convinced you have made the right choice for your loyalty program yet?
At LYLTY we passionately believe in offering choice, and providing you and your customers with more choices to make smart and lasting decisions that increase benefit and value on both sides. If you are interested to see how you can provide more choice and better cost management to your loyalty program, come talk to us. We are happy to help you.