Now is the time to differentiate your loyalty program by building out a rewards catalog with a wider selection of retailers, experiences, and even digital assets. 60% of respondents to our loyalty survey mentioned a gift card as their reward preference and 40% of would switch programs for better loyalty rewards options.
Participants were asked what reward redemption features would make them consider switching to another loyalty program and 33% mentioned better experiential rewards. Providing experiences are a gift that keeps on giving. They can linger in a customer’s memory for years. Experiential travel rewards, for example, create lasting memories and positive associations with the organization that provided the reward.
Giving your loyalty members the option to earn toward an experience makes for an attractive rewards option for millennials, the nation’s largest living adult generation. Research shows that younger generations prefer to redeem rewards on experiences instead of on physical items. If the goal is to draw in a younger demographic, a rewards program can have a substantial impact giving members this option. In fact, 55.4% of companies in the planning stages of a loyalty program recently reported that they plan to offer experiential rewards. So if you want to stay competitive, build or revamp your loyalty program to include experiential rewards.
24% of our loyalty survey participants asked for a better selection of digital subscriptions like Netflix and Hulu. Not only can you keep loyalty members from switching programs to get better redemption options, subscriptions are one way to continue to remind your members of their reward. The best part of this reward is that members who utilize this option will be consistently reminded of the value of your loyalty program.
While shares are a new points redemption offer, 20% of consumers seek expanded catalogs with fractional share options. Consumers across all generations join loyalty programs to save money. By offering shares, you can give customers the opportunity to save money and make money! In one study, weekly spending at selected brands jumped 40% once customers were rewarded in fractional shares of stock as part of a stock rewards program.
Reward points conversion to cryptocurrency is a low-risk way for users to enter the crypto market. Users may be curious about crypto, but reluctant to engage in the market with their own funds. Offering cryptocurrency payouts could be especially exciting for them. There’s also a market for recent cryptocurrency adopters. According to a Bakkt study, 72% of those who purchased crypto at least one time in the past six months, are likely to redeem loyalty points for cryptocurrency.
Some individuals aren’t interested in using points for themselves. We have seen that some members are interested in turning their cashout to a charitable donation. This is not only a powerful customer incentive for users, affiliation and collaboration with charities can also be an excellent tool for improving brand reputation.
Members Want More For Their Loyalty
Your members want choices, but not just any choices. They reward options that make them feel valued, seen, and understood. They want to know what their loyalty means to you. To retain members and motivate them to return to your brand again and again, you must invest in you reward cash out experience. Even if the cashout experience is seamless - from sales and automation to affiliations and marketing - your hard work will be undone if your redemption options miss the mark. Offer global coverage and local payout types recipients love through the Runa network. With Runa, you can begin to offer a breadth of memorable personalized, customer-centric rewards that reinforce their positive relationship with you. Schedule a demo today.