Paperchase’s recently launched ‘Treat Me’ scheme is the latest to set itself apart from the traditional points-based approach with the proposition ‘No Points – Just Perks’; but with Morrisons having finally succumbed to a points-based loyalty scheme in the last year and the plethora of ‘points for pounds’ programmes now available everywhere from coffee shops to book stores (even my local greengrocer has one) it looks like points are here to stay. Here’s why:
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We’re a nation of collectors - whilst even the most savvy of customers would probably struggle to tell you how much each of their points is actually worth; we don’t seem to mind as long as there is the perception of a meaningful reward at the end of all our points-harvesting efforts. After all, everyone likes getting ‘something for nothing.’
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They’re accountable - Seeing your points balance on your receipt provides a sense of achievement and encourages customers to spend more and more often; whilst also coaxing them to try alternative products and brands, and driving them back into store to spend their rewards.
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Simplicity still works…- redemption methods don’t always need to be overly-sophisticated; there’s still plenty of customer goodwill to be won in sending a paper reward voucher through the letterbox.
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… but omni-channel communications must play a vital role - If customers aren’t reminded at every touch-point any points programme, no matter how well-constructed or generous, is unlikely to succeed. Nor are points programmes miracle-workers – if the product isn’t right no amount of bonus points will convince the customer to buy it.
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Points and perks can be combined - The beauty of loyalty programmes is that hard rewards like points don’t have to be exclusive. Combining the feeling of reward that collecting points brings, with the support of softer benefits such as exclusive experiences or free gifts, provides variety for the customer and keeps them interested.
So, points programmes may very well serve the customer and retailer well for many years to come, but there are a few simple rules which should be adhered to. First and foremost, points cannot be seen as a disguise for over-pricing. Equally importantly, they have to be easy to earn and spend across all available channels, and ideally combined with softer rewards.