Tech Peak » Effective remedies to improve Loyalty Program Redemption Rates

Effective remedies to improve Loyalty Program Redemption Rates

by rewardsplatform
customer loyalty software

Points are frequently accrued but never used. There are many different Loyalty program offers management platform, and some of them have better redemption rates than others. In order to determine whether your customer loyalty software is appealing and your members are actively earning and “burning” points, it is crucial to look at your redemption rate when you issue points. There can be an issue if your clients are accruing points but not using them. The percentage of issued and used points in a loyalty programme that were converted into prizes is known as the redemption rate. Industry, location, ease of redemption, general programme awareness, perceived worth of rewards, programme age, and other factors all have an impact on average redemption rates for loyalty programmes.

This could entail using a specific discount code or voucher at the checkout, or exchanging their reward points for something material.

Here is how you can calculate your loyalty program redemption rate using the simple 3 step formula

  • Find out how many points or rewards have been spent overall.
  • Find the total number of points ever issued, including those that have already expired.
  • Subtract the total number of points issued from the total number of points that have been used.

Loyalty programmes typically have redemption rates that are 13.67% or higher. If your rate is lower, you should begin incorporating some of the various suggestions into your loyalty programme.

Know the 3 effective tips that Help You Improve Your Redemption Rate

Provide a variety of ways to earn points

Don’t merely give out rewards for actions. Reward your customers for participation, exchanges, social sharing, wellness objectives, and more. Your redemption rate can surprise you by rising when your clients feel appreciated for all they do.

Offer a good range of rewards

In order for consumers to enjoy a great, frictionless experience and get relevant and meaningful value from the brand relationship, brands must provide them choices and power. 70% of customers want programmes to collaborate with products that are complementary to their consumers’ lifestyles to enhance ways to earn, and 77% of consumers want tailored incentives. Consumers desire the freedom to choose the rewards that best suit their needs, whether they are cashback or rebates, experiential benefits, or free things.

Upgrade clients

Use an email tool that is compatible with your client database. This will enable you to update your customer loyalty software participants on their point balance so that they are aware of it. Their current reward point balance can be found on the side panel each time you send out a newsletter.

Conclusion

Poor participation rates cause low redemption rates; the remedy is to design a program that inspires people to participate more. Reach out to us at Novus loyalty to learn more about creating and implementing a successful loyalty strategy in the digital economy. Here, our expert team of Loyalty program offers management platform designers will provide the most practical and outcome-driven solution to help you increase your loyalty program’s redemption rate.

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