Category Archives: Loyalty Marketing

Are Loyalty Programme Operators seeking redemption?’

My question is nothing to do with their Karma but whether they are actively encouraging their programme members to redeem the currency that they have earned?

Loyalty experts will tell us that programme members are not fully engaged in a scheme until they have redeemed their points or miles and, therefore, operators should encourage ‘burn’ in the same way that they encourage ‘earn’ The cynics amongst us will say that some operators would prefer to enjoy the ‘breakage’ rather than endure the redemption !

We are seeing lots of creative ideas and offers that encourage participants to earn more points/miles with Double or Triple promotions and other bonus offers, so why aren’t we seeing many similar campaigns to encourage redemptions?

Typically, Tesco are enabling Club Card Members to increase the value of their points by ‘burning’ them on higher margin products or with their partners. Thus reducing liability, increasing the perceived value of the points and driving business for their programme partners. Indeed, this not only improves the Customer Value Proposition but means that customers do not use their points to buy things they would have bought anyway! In other words, not discounting the shopping basket!

We see offers from Airlines, Hotels etc. that are designed to get us to book flights and accommodation and earn bonus points. Why can’t we receive offers that encourage us to ‘burn’ our points i.e. Points worth double when redeemed for these flights/stays etc?

Technology has improved significantly in respect of bonussing capabilities. Let’s see some more creative bonussing to reduce funding liability and increase customer satisfaction! Or are some programme operators ‘beyond redemption?’

Airlines are Winning the Loyalty Game

Gamification was the hot buzz word this year for customer engagement, but how does it relate to frequent flyer programs? By Roger Williams Gamification is defined as “the use of game mechanics for non-game applications”. Businesses are making their websites and applications feel less like “transactions” and more like games – although some will argue…

The Challenges of Loyalty Data – Will It Lose The Loyalty Brand?

Do loyalty schemes invade privacy? In a thoughtful article – Fiona points to the fact that as loyalty programmes rollout the use of loyalty data across social media and integrate with POS, they could loose their brand! as the loyalty brand disappears with the lose of loyalty card etc. It merely points I think to…

Payments and Loyalty Meet in the Mobile Handset

Whether transferring funds to a close friend or family member or remitting payment on a business invoice, we’ve all got to deal with the issues of money transfer. Payments are central to our lives and how we pay has cost implications for both the merchants we patronize and our own personal budgets. Today I’m not…

There’s nothing like Mother’s loyalty – or is there?

Great insightful article from the Wise Marketer, read below and through the link. Companies seeking to market products to and build loyalty among expectant mothers face a unique set of challenges, with most doing their research before their third trimester and being most responsive to marketing messages early in their pregnancy, according to research by…

Key Factors for Successful B2B Programmes

  Loyalty programmes form a pivotal part of the marketing and communication mix for many Business-to-Business organisations – but what constitutes a successful loyalty programme? The importance of customer loyalty is quite simple – a company which retains its customers will invariably make higher margins at a lower cost than those who are constantly spending…

Loyalty Asterisk™ – Part 2

It seems that over the relatively short 30 year history of the Loyalty Marketing business, marketers have steadily exhausted their reservoir of creativity and increasingly relied on the Loyalty Asterisk™ to make up ground. During the recent economic downturn in the U.S., marketers widely employed the Loyalty Asterisk™ to reduce program costs. The tactics included…

Loyalty Marketing and The Asterisk™ – Part 1

Things we can’t live without We have created a world with so many things that we cannot live without. Cell phones, instant messaging, and unlimited texting all qualify, with prioritization based on your age and techno-savvy quotient. If kids were cowboys, the six shooters on their belt would be Instant Mesaaging on one side and…