Case Study: Lower Value Redemption Options Driving Engagement in Loyalty
OverviewIncreasingly, banks and their associated credit card loyalty programs are seeking new and innovative ways to increase customer engagement and retention. Although program members continue to redeem points, even during the pandemic, redemption has shifted from travel to alternative items and services at lesser values than travel. This shift creates a unique opportunity for banks to enable a wider selection of redemption options at lower price points to help further increase loyalty program member engagement. Engage People’s Canadian bank credit card loyalty program clients were looking for ways, beyond travel and traditional merchandise catalogues, to engage customers, increase brand interaction, to encourage their loyalty program members to ‘spend’ accumulated points. These used Engage People’s innovative technology to enable pay-with-points transactions through a major ecommerce marketplace integrated in the checkout like any other payment option. The connection generated increased engagement and redemption and demonstrated the appetite for lower cost redemption options by loyalty program members.
ApproachEngage People worked with its clients, major Canadian banks, and a global eCommerce retailer to integrate a pay-with-points model into the retailer’s point redemption checkout process. By integrating pay-with-points technology directly into the shopping cart as one of the payment options at the point of purchase, Engage People enabled a convenient and frictionless checkout experience for the bank’s loyalty program members. Since launching the Engage People empowered network the results – an increasing number of transactions, point redemptions and dollar sales – demonstrate expanding consumer interaction, engagement, and connection. With increases in enrollment, transactions, and points redeemed, the partnership reveals that loyalty program members are willing to redeem at lower points and dollar values.
Loyalty program members have shown a preference within ecommerce to spend at lower values. By creating options at lower $ and point levels, increases engagement and provides more redemption options to facilitate purchases at preferred values.
As the average transaction amount reveals, by providing rewards options that cost less than those traditionally offered through redemption catalogues, program members with lower point balances are able to participate, further increasing inclusion and engagement.
By creating and enabling a frictionless and convenient way to redeem points for rewards online, Engage People unlocks the true potential of loyalty program points to deliver untapped value for program members, banks and other program sponsors, while driving incremental sales and customer exposure for eCommerce retail partners.