Loyalty Highlights: Earn and Redemption Mechanics – Global Loyalty Trends Report 2022
Catch up on key loyalty insights through our “GLTR 2022 Mini-Series”, where we break down some of the core topics discussed in our full report and emphasize some of the more intricate details.
In the second instalment of our series, we are breaking down the earn and redemption mechanics that are at the core of any good loyalty program.
Enabling Points Conversion
The results indicated that point-based loyalty programs were a norm across global brands in the loyalty industry with 71% of programs adopting this system.
Interestingly enough though, only 5% of these programs actually enabled their members to convert their loyalty points into other brand loyalty points or currencies. This could be one of the reasons explaining how some brands with a point-based system score a higher member engagement rate over other brands that adopt one.
Tier Systems and Redemption Options
With many brands trying to boost their member engagement and spending, it is only logical that different strategies are employed to achieve these goals. One of these is the use of tier systems. Not only do they incentivize higher member earn rates, but members also engage more with your program as a means to reach the next tier and unlock extended value.
Responses for S3Q4: “Does your program integrate tier systems?”
Rewards are at the core of any loyalty program but what separates the good from the great?
As the data would indicate, loyalty programs with high active member engagement, all offer more than 5 redemption options to their members.
Your members want flexibility and options, not just the same old merchandise and some coupons.
Offer more enticing rewards to incentivize members to earn more and thus spend more for the awesome rewards you provide them!
Top 12 Earn Options
- Through Partners
- Birthday Rewards
- In-app Activities
- Playing Games
Top 11 Redemption Options
Key Takeaways (TL:DR)
71% of loyalty programs use a point-based system but only 5% of these programs enable their members to convert these points into other brand loyalty points or currencies
With many brands trying to boost their member engagement and spending, it is only logical that different strategies are employed to achieve these goals. One of these is the use of tier systems.
Loyalty programs with high active member engagement, all offer more than 5 redemption options to their members. Indicating that your members want flexibility and options, not just the same old merchandise and some coupons.
Keep an eye out on our socials to find out when our next loyalty report mini-series post is released and discover more exciting insights about loyalty from the top brands around the world.
Make sure to share your favorite stats/insights on all socials, tag us @qiibee and use the hashtag “#qiibeeGLTR2022”, so we can retweet all your posts!
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