As our lifestyles change in the wake of COVID-19, travel, booking, and purchase behavior for many industries has declined. This change has impacted loyalty programs because members may not have been able to participate as they once did. Thus, brands are working to quickly adapt their programs and find new ways to keep members engaged.
Recently, we’ve seen many loyalty programs extend point expiration dates and tier eligibility to allow members to keep their statuses despite decreased participation. These are both great ways to keep members satisfied and mitigate churn. However, these methods can also translate to large point liabilities on the financial books which can bring additional challenges later. And, while those program updates may keep members in the program, they don’t necessarily solve the challenge of reduced program engagement.
Chance-to-Win Rewards can solve both the decreased consumer engagement and point liability challenges.
Why it Works
Adding the chance to win an aspirational reward – something exclusive, unique, and not easily attainable – to an existing loyalty program reward structure gives members a quick and easy way to redeem points and a compelling reason to re-engage. According to Merkle’s Loyalty Barometer Report, 41% of consumers say they like chances to win as part of the rewards mix. Even the newest members can participate because chances to win have a low point threshold, which addresses the number one cause of dissatisfaction with loyalty programs: it takes too long to earn a reward
Brands benefit through a cost-effective reward option that not only reduces point liability, but also drives members back to the program to engage in a fun, new way. Plus, Chance-to-Win Rewards are turnkey and easy to integrate, so they can be added to the loyalty program experience without making changes to the overall loyalty program structure. This light lift can be added to an existing loyalty program in just a couple weeks.
How it Works
Chance-to-Win Rewards are member-gated to drive engagement within the loyalty program site or app. Once the program and prizing strategy is determined and the official rules are drafted, the Chance-to-Win Reward is added to the program’s point redemption options. Members are alerted about the new reward opportunity through existing paid and owned channels (media, CRM, social, etc.), and they spend their accrued loyalty points on entries for the chance to win just as they would any other reward.
To learn more about re-emergence strategies that can help combat the effects of the pandemic, download our Consumer Activation Must-Dos for Re-Emergence.