Loyalty programs have never been perfect, and they may never be… but we think they could certainly be better.
In many loyalty programs today, sign-ups are healthy, but long-term engagement rates don’t match up. In most cases, this is because members do not have enough points to redeem anything, are not engaged between purchase cycles, and there is little incentive to participate in a slow-earning rewards program.
The situation may seem tough for brands trying to keep their rewards programs alive, but we know there’s a simple solution that can breathe new life into any loyalty program.
If you’ve read the title of this article, you’ve probably already guessed what our now not-so-secret secret solution is… Sweepstakes!
Although this is not a new concept within the world of marketing, it is certainly an innovative concept within the world of loyalty marketing. So, I’m here to tell you exactly why you should be leveraging sweepstakes to boost your bottom line, your engagement, and of course, your customer loyalty.
Sweepstakes (or promotions, as they’re often labelled) provide point-spending options for low-value trickle points, removing barriers to entry so new members can start playing to win immediately. As members engage earlier in the redemption cycle, there is a higher chance that they will continue to interact with the program by purchasing products and playing for additional rewards at an accelerated cadence. Members become incentivized to engage with the brand, because they know they can spend their points on great opportunities, thus beginning the ‘earn/spend loop’.
Instant Program Value
Promotions also provide an incentive for customers to join a rewards program at any time and still gain value from it. As an example, if the mother of an 18-month-old just discovered a diaper rewards program, she may feel that she missed the opportunity to gain a worthwhile amount of points and therefore doesn’t join. In the case of a sweepstakes-integrated loyalty program, she would recognize the opportunities to be rewarded upon joining and would see value in the program even if entering late in the game.
This loyalty model provides added benefits for loyalty operators, such as; sustained member excitement, additional consumer data, and more streamlined catalog operations.
Consumers are engaged and excited on a regular basis due to the continuous launches of new chances to win prizes. Through continued engagement, sweepstakes can drive a significant layer of data regarding consumer interests, helping brands to make the right decisions in other areas of their loyalty program. For those programs that maintain a dual approach with the use of a catalog and sweepstakes, the promotional aspect can complement the existing catalog framework by acting as a consumer testing ground to determine which items would be the most popular for a catalog.
Adding a sweepstakes component to your rewards program will engage more members, more often and provide valuable insights to help streamline your customer relations.
Now The ‘How?’
By now, I hope you’re convinced that sweepstakes can enhance just about every aspect of an existing loyalty program. So you’re probably wondering how you can implement it…
You won’t believe the odds, but IC Group has already developed a solution for sweepstakes-integrated loyalty called LoyaltyLIFT. This solution plugs into existing loyalty programs to boost effectiveness and increase ROI. Incredible how that works out, right?
Now there may be other solutions to execute these types of loyalty programs, however, IC Group has the experience of successfully executing thousands of sweepstakes integrated with loyalty programs. Without the expertise, you’re likely to miss your target and spend too much on prizes, while also forgoing the opportunity to continuously lower the cost-per-point in your rewards program.
We’re here to ensure you get the most out of your loyalty program.
If you’re curious about our loyalty solution, shoot me an email or give me a call.
I’m the VP of Sales at IC Group and loyalty program strategist.
I’d love to get your take on this article. To talk more, you can email me at firstname.lastname@example.org