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.
Stay up-to-date with our newsletter
Join our mailing list to receive the latest industry, product and team news and updates.
You successfully subscribed to our newsletter!
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!
qiibee is the global standard for loyalty on the blockchain
We offer you the future. The untapped potential of loyalty at the tips of your fingers. Trustless interoperability. Enhanced security. One universal truth within your database.
Most Recent Posts
Web3 & Customer Loyalty: What Elements of Web3 Are the Most Relevant for Loyalty?
Prepare to elevate your loyalty program with the cutting-edge capabilities of Web3 technologies....
Web3 & Customer Loyalty: Four Leading Challenges Brands Face
Loyalty programs are a popular tool for businesses looking to increase customer interactions and...
Top 5 Loyalty Use Cases of the Week #5
Loyalty programs have become a crucial component of retail and consumer industries in recent...