It’s not hard to see why when most people (marketers, companies and consumers) hear the word loyalty, they pretty much think about being rewarded in some fashion for said loyalty. And that’s true. What’s a little short-sighted here is the underlying equation in the thinking, which goes something like this: people like and buy this brand regularly. So, let’s thank them with something, and keep them coming back.
Loyalty programs can be more than a retention tool.
Retention is of course awesome. Few would argue with the fact that it’s far cheaper to keep a customer than acquire a new one. But loyalty programs can also be used to attract new customers, boost sales, build brand awareness and gain share, typically through participation incentives or promotions. The trick is when you do what. In short, participation incentives encourage people to take a variety of actions before a purchase, while promotions aim to directly drive sales or increase brand awareness.
What are the best uses of participation incentives?
Based on the name, when you want to get people to participate in something, you should incent them. But it isn’t just about signing up for your loyalty program. It’s also when you want to get feedback on a product or service from existing members. Or drive leads with new ones. Simple programs, like a survey with small rewards, can really drive engagement and help you build relationships, which of course, drives loyalty and long-term growth. Free trials, relevant rewards and unique incentives are also excellent ways to incentivize participation.
What are the best uses for promotions?
While promotions can help you build your overall brand, they are primarily designed for short-term spikes in sales or awareness. It’s about now. Buy this now. Do this now. Try this now. Sales, discounts, coupons, limited-time offers, special deals and extra digital rewards are all examples of promotions. And when you make these offers exclusively to your loyalty program members, they appreciate the attention and feel rewarded for their loyalty. So, as they say, it’s a win-win.
It’s a good strategy to keep a mix of both going.
Inundating your loyalty members with endless offers is never a good idea. It annoys some. And makes you invisible to others. But since your membership is constantly evolving, it’s good to identify who’s new and who’s been around. Who is engaged and who could use a nudge. Then develop a cadence with the different groups that include incentives and promotions. And every now and then, reward everyone with something big, cool, special, unexpected or ultimately, all of these things and more.
NeoCurrency is here to help.
Whether you are incentivizing participation, or want to activate a promotion, we can provide you access to an incredible array of digital rewards including big brands like Apple, Amazon and WalMart, to more niche brands in entertainment, food delivery, ride share and gaming. And of course, cash-like options are available as well to reward your members with the ultimate in choice.
Better still, our team of customer service reps are here to help you every step of the way. For a full list of brands available, check out our Rewards Explorer. And to see why we have so many loyal customers of our own, around the country, and across the globe, just get in touch.
