9th June 203
Loyalty specialists focus on various aspects related to redemption and the related cycle.
Of interest are continuity and irregularity in the earn and burn cycle, redemption frequency, metrics related to redemption and so on when one looks at engagement.
Charles Christianson, Chief Revenue Officer at cxLoyalty, a speaker at this year’s #MegaEvent2023 held in London in April this year, asserts that rather “than focusing solely on big-ticket transactions, shift the focus to micro-transactions and everyday engagement”.
He also added, “You want people to transact where you have the best economics and where you make the most money. You must be both engaging and economical”. Sharing a practical tip, he says companies can also try out a simple yes or no proposition to encourage engagement, instead of giving options all the time.
“It’s one thing to be engaging, but it’s another to be engaging with optimal profitability, so being able to identify high-value engagement opportunities is crucial,” according to Christianson.
“Some benefits offered to customers are more expensive than others and operate on a breakage model. Overuse can blow your budget, which is why some companies opt to eliminate the benefit altogether. However, you do not have to do this. Depending on your brand, program structure, and overall philosophy, more expensive benefits can be reserved for higher-value customers. On the other hand, if all your loyalty program members receive the same benefits, you can still influence the use of individual benefits through a targeted marketing strategy.”
By Ritesh Gupta, Ai Events
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