Given that perceptions of the value of the dollar change during inflationary periods, should brands retool their customer loyalty programs and adjust their monetary offerings? It is important to evaluate your reward offering strategically, as retooling may not be your best move.
Start by recognizing shifts in customer perspectives, analyzing your program's insights—and utilizing today's market as an opportunity to layer in new rewards that not only surprise and delight your customers but also hold their value.
In today's market, customers are spending less on products for their homes and more on items that complement experiences—shifting away from appliances and TVs in favor of luggage, for example.¹ This is one of many market indicators that point to a surging consumer interest in experiences.
Today's environment can an opportunity to review and refresh your rewards, strengthening your loyalty program and community of brand fans. Trips, sporting events, concerts, relevant merchandise and other compelling experiences—these are exciting and relevant additions for your lineup that hold their value during times of inflation. A chance to earn or win high-end merchandise or see a headlining band provides an experience that will create lasting impact beyond everyday savings.
As inflation might shift perceptions on the value of cash-based rewards, psychological research underscores the importance of customized rewards. Research shows that customer expressions of value are significantly influenced by their preferences.
When a reward sparks joy, people use expressive, personal terms to describe its value. Those who feel more indifferent toward the reward will have a more rational response—describing the value in dollars and cents.² Up the emotional ante with a little flair to influence how recipients value non-cash rewards. Much like a gift in colorful packaging topped with an elaborate bow, special touches and features that evoke excitement are more likely to elicit a meaningful, feeling-based valuation.
Exciting and relevant rewards and incentives that provide a chance to win or earn concert tickets, trips and high-end merchandise are an invaluable part of successful rewards programs. This is particularly true in times of inflation that might shift spending priorities and perceptions of what cash-based offers are worth.
When customers are matched with rewards that align with their wants and interests, the value will be priceless to them—and leveraging gamification takes rewards to new levels. Gamified features increase engagement by enabling members to redeem points for sweepstakes entries and auction bids, giving them a chance to win exciting prizes. To drive engagement, opt for behavior-based methods of entry such as daily logins that unlock new offers. When entries and points encourage desired actions, it's a win-win for you and your customers.
Plus, controlled budgets on the backend provide flexibility for organizations.
Value through relevancy is the best way to make an impact. When customers believe you understand them, they'll return for more. A platform that leverages multiple customer data points provides key insights on which marketing offers and experiences will best resonate—enabling customers to unlock deals that are generated by behaviors, site activity and data-rich profiles.
Our proven loyalty and engagement platform solution transforms customer loyalty strategies and builds affinity for the world's top brands—utilizing customer behaviors to provide offers that meet them in the moment. Technology that responds to the customer's ever-changing needs builds confidence in your brand, encourages interactivity, increases sales and builds loyalty. More importantly, innovative features create ways to connect with customers and give them new reasons to check in and interact.
Contact us to learn more about how Augeo can help your enterprise elevate engagement, foster loyalty and build brand love through flexible and scalable platform technology.
¹ CBS News Minnesota | Target CEO Blames ‘Unexpectedly High Costs’ for Poor First Quarter Profit
² Incentive Research Foundation | Academic Research in Action: Non-Cash Rewards in a Period of High Inflation