Top 5 Solutions to Increase Rewards Liquidity

Industry

As we learned in the last blog post, it’s key to kill breakage (=points not used/expired) by increasing the liquidity of your rewards. Why? McKinsey found that the top-performing loyalty programs profit from customers who redeem their points since these customers either purchase more frequently or increase their purchase basket. This results in a 15% to 20% higher revenue per customer.

That being said, it is quite clear why users spending more points is vital to brands’ success. This is why we are showcasing the top solutions brands can implement, in order to boost rewards liquidity and customer engagement. Although some are more creative and others simply more convenient, they have one thing in common, they all increase the relevant metrics that your brand is targeting.

Top 5 Solutions to Increase Rewards Liquidity

Solution 1 → Offer Your Own Products/Services

Leverage your own products and services to create new redemption options that are experiential in nature rather than focusing on straight cashback opportunities.

Liquidity Boost: +

Main Points:

  1. Increase liquidity by adding more of your own products and services in the redemption shop

  2. Add more liquidity by offering exclusive experiences and rare VIP perks around your brand

Solution 2 → Integrate Partner and Third-Party Product/Services

Add solutions, products, and services from your partners and other third parties into your redemption shop. If your rewards aren’t creating enough traction for all of your program members, try diversifying with partner products and services.

Liquidity Boost: ++

Main Points:

  1. Boost the liquidity in your program by integrating partner products/services in your redemption shop that incentivize users

  2. Create new exclusive experiences for users through your partner or third-party solutions

Solution 3 → Connect Loyalty Programs and Exchange Points

Empowering members with the ability to exchange their rewards for rewards of other loyalty programs, opens thousands of engaging redemption options

Liquidity Boost: +++

Main Points:

  1. Provide users with more options to exchange points, i.e. exchange your points into selected frequent flyer miles, to easily boost your rewards liquidity and attract new customers

  2. Leverage the loyalty ecosystem by partnering with other brands that offer complementary products/ services and add more value to a customers life

Solution 4 → Gift Cards

Collaborate with a gift card provider that has access to gift cards from various brands in order to increase the number of redemption options for your members.

Liquidity Boost: ++

Main Points:

  1. A simple yet effective solution that can provide your users the interface to redeem their points for a whole array of different gift cards

  2. By providing a large variety of gift cards from different brands, your users have more incentive to earn more points to spend

Solution 5 → Crypto/NFTs

Allow your users to exchange the loyalty points that they earned into cryptocurrencies or other blockchain-based rewards (NFTs). Digital collectibles, Art, VIP perks, exclusive access

Liquidity Boost: +++

Main Points:

  1. Expand beyond just simple rewards and incentivize users by letting them exchange their loyalty points into crypto and use the volatility of the market to engage your customers

  2. Utilize the true power of NFTs by offering digital collectibles or exclusive NFT access passes with VIP perks attached

Key Takeaways (TL:DR)

  • Loyalty programs can sometimes suffer from a liquidity problem, meaning that users aren’t accumulating enough points to gain interest and thus are not even engaging with the brand.

  • McKinsey found that the top-performing loyalty programs can boost revenue from customers who redeem points by 15 to 25 percent annually, by increasing either their purchase frequency or basket size, or both.

  • The Top 5 solutions include: 1) offering your own products/services, 2) offering partner/third-party products or services, 3) connecting to other loyalty programs and offering exchangeable points, 4) a gift card provider and 5) Crypto and NFTs.

Take advantage of loyalty’s true potential and scale it with our technology! With qiibee, you can make your loyalty mean something. Join our ecosystem today using the following link: 30 Minute qiibee demo – Francesco Pagano.

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