If you’re running a loyalty program, you probably have two main financial objectives: lower program costs and drive more revenue.
In many cases, you go after one and are forced to sacrifice the other. When you cut program costs, it results in lower member engagement and therefore less revenue. When you aim to drive more revenue, it results in much higher program costs.
So, what are you to do? Which one should you choose?
It’s a tough question to answer. Luckily, you don’t have to choose between two opposing goals, because with our LoyaltyLIFT solution…
You can do both. Here’s how:
There are several ways companies overspend on their loyalty programs today. Typically, they don’t have the proper value exchange, redemption models, and strategies that are required to build their member base and drive participation at reasonable redemption costs.
Our LoyaltyLIFT solution lowers cost-per-point by up to 50% or more.
This term ‘cost-per-point’ (CPP) is the amount it costs a brand for each point redeemed by a member. The goal is to have this CPP as low as possible, while also engaging and exciting members in a way that inspires loyalty. Many brands are solely dependent on catalogs, where members can redeem their points for gift cards, products, and experiences. There may be attractive items in the catalog that motivate members, but it comes at a very high cost as points are redeemed.
So, how do we lower your CPP? LoyaltyLIFT strategically injects a cadence of promotional solutions into your existing loyalty program as a way to drive high-volume point spend on low-cost chances to win. Let’s break it down.
LoyaltyLIFT can routinely motivate between 10-18% of the total engaged membership to spend small amounts of their earned points on chances to win. When they do this, due to the low “FIXED” cost of the promotions and the massive points spend per program, your CPP will PLUMMET.
You probably have a few questions at this point.
- Is it really that simple? Yes, it really is that simple!
- Do members really spend their points for chances to win rather than guaranteed items? Yes, they really do. Annually, our clients’ members are spending in excess of 2.5 Billion points on chances to win!
Think about the popularity and motivations for playing the lottery or gambling, some of the same principles can be applied here. Not much gets people quite as excited as a chance to win amazing prizes – especially when it doesn’t cost them much to enter or play.
Unique Insured Promotions
What does insurance have to do with loyalty programs? In our loyalty programs, we leverage prize insurance a whole lot! If you want the biggest and best prize pools that will excite your members, you will want our insured promotion capabilities.
Our insurance solutions help leverage lottery-sized prize pools to add impact and drive more results for your promotions, all at a fraction of the cost. Check out this video to see the extra ‘WOW’ factor that comes with bigger prizes, without the bigger spend.
And with our LoyaltyLIFT solution, you get all of the IC Group interactive promotions that have been engaging consumers for years. This includes our instant win games, sweepstakes, skill games, and our unique insured promotions.
Many loyalty programs are global, or at least operate primarily in global markets. In order to execute global sweepstakes and other promotions, you want an experienced partner that can deliver. This is where we shine.
IC Group has been delivering global promotions for almost three decades, with over 400 promotions in 25 global markets. We have secured a global network of suppliers and dealt with all legal and operational procedures required to operate internationally, making it easy for LoyaltyLIFT to reach around the globe.
By this time, I hope you understand how LoyaltyLIFT can SAVE you money, but I promised you revenue too, didn’t I? So here it is… how our LoyaltyLIFT solution also drives revenue.
The breakdown is essentially this:
The more a member is engaged in redeeming points on chances to win prizes, the more points they will require to continue that behavior; meaning more members are likely purchasing more of your products and services to rack up points over their lifetime, which results in more profit.
Simple, right? So how do promotions actually engage members more? I’ll direct your attention back to the lottery because people love playing for the low-cost chance to win. It provides them with the thrill of thinking “Wow, what if I actually won? What if it was me?!” and they are willing to play again and again for that feeling and the possibility of winning, as long as the value exchange is in their favor.
This cycle contributes to members engaging in all of your marketing touchpoints to earn points, giving you more engaged members that become your biggest brand advocates. Member loyalty is the name of the game and frequent engagement in redemption is the critical missing piece.
So why choose between saving money and driving revenue when you don’t have to?
The sooner you give me a call, the sooner you can start using LoyaltyLIFT to do both!
I’m Director of Client Success at IC Group and a loyalty program strategist