6 days ago
Value remains a top draw of loyalty programs
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Dive Brief:
Consumers are seeking more substantial value from loyalty programs, with 85% saying they want better discounts, according to a Kobie survey of 5,000 global participants released Wednesday.
The ability to track earnings is also important, particularly for paid loyalty programs. Two-thirds say they immediately appreciate the value of fee-based loyalty programs when they see how much they've saved in a year.
More than 4 in 5 respondents said they would be interested in surprise earning opportunities.
Dive Insight:
While value is a core aspect of loyalty programs, companies may want to keep simplicity top of mind while finding ways to stand out from the crowd.
There is a difference between value and effective value, Jerid Grandinetti, VP of marketing and culinary at Baskin-Robbins, told CX Dive in January. Customers who can't earn desired rewards won't find those rewards valuable regardless of how much they can save.
With that in mind, the company redesigned its Baskin-Robbins Rewards program to not just make customers feel like they're getting a deal but also make the rewards flexible and easy to earn.
'I think what we've learned is that our offers need to be simple, they need to be consistent, they need to be compelling, and they need to match guest behavior,' Grandinetti said.
Not only do customers want different rewards, but their approach to redeeming them varies as well.
Kobie's research found that about half of consumers are "savers," defined as those who earn points with a specific loyalty reward in mind, while one-third are "collectors" who earn points without a specific goal. Just one in five are considered "spenders" who redeem points as soon as they are eligible for a reward.
While monetary rewards are popular, loyalty programs can also benefit from offering a variety of rewards that go above and beyond transactional value. Prizes and experiences can help a program stand out, particularly among a brand's most loyal customers.
Butcher Box takes this approach with its Sizzle Society loyalty program. The three-tiered program offers the equivalent of 2% back with each purchase for all members, but customers who reach the higher tiers can access experiential benefits like priority customer support and access to virtual Q&As with the company founder.
'The table stakes, if you will excuse the pun there, are offering points back,' Chief Commercial Officer Reba Hatcher told CX Dive last month. 'That is just a loyalty program. Nothing about that makes ButcherBox stand out, and nothing about that makes our program special. You can go to another company and get your 2% back.'
