Trending Now: Instant Redemption Rewards Reach Customers Neglected by Traditional Loyalty Programs
There is no doubt that loyalty programs are on the rise today. In the U.S. alone, there are 1.8 billion individual memberships in loyalty programs1, everything from airlines to convenience stores to movie theatres. In light of this huge number, the general perception is that consumers are happy to join loyalty programseager to enjoy the added rewards that come with loyalty programs. The reality, however, is that they’re not. Confirming this expectation gap, a recent survey by the Chief Marketing Officer Council found that some 32% of consumers surveyed felt that participation in loyalty programs holds “little to no value.” Ouch.
What has emerged as a result of this disconnect is a new direction in loyalty programs: instant reward redemptions. In the past, instant rewards have been limited to cash or discounts at the register; maybe a free item of very low value. Technology, thankfully, has given rise to this new breed of instantly redeemable rewards – the digital, downloadable kind. These instant rewards promise to finally eliminate some of the traditional problems associated with loyalty programs, like engagement and delivering value.
Problems with Traditional Programs
Low-Threshold Consumers
Instant reward redemptions provide companies a very affordable alternative to offer these low-threshold consumers an easy way to burn low point accumulations. Loyalty program managers also benefit, as studies have shown that these “light buyers” represent a large increase in spending and purchase frequency post-redemption4. In other words, they’re not a segment to be ignored.
Delayed Redemption
Digital Content: The Ultimate Instant Reward Redemption
So with this information acquired from recent surveys and obvious positive consumer sentiment, the next question seems to be: is digital content a good substitution for cash or discounts?
In a word, yes. According to Mintel’s study, 61% of respondents said that lower overall cost for merchandise they would have purchased anyway is an important attribute of a loyalty or rewards program. It’s feasible to assume then, that relevant contentcontent that the consumer is likely to purchase regardlessis a good substitute for cash or discounts. And considering that 65% of internet users have paid for intangible digital content, there is a huge market for relevant and engaging digital content waiting to be developed6. In the UK, a recent YouGov survey showed that among those aged 18-34 who had engaged in digital activities, 22% spent more than £5 on digital books, the digital content category receiving the highest spend7.
Digital content presents a win-win strategy
In essence, instant digital rewards have bridged the gap between reality and perception. By making rewards instantly redeemable, businesses can give their customers the value that they seek: relevant rewards instantly and anywhere, loaded onto the devices they use in their everyday lives. Instant digital rewards, it seems, have created a new trend in loyalty programs: programs that workfor everyone.
Loyalty: Looking Forward
About the first club™ | the first club™ is the first global solutions provider to present a new, better, and more effective way to offer rewards and build loyalty by delivering relevant, digital content that is instantly gratifying to today’s consumers. the first club™ digital solutions can enhance loyalty, promotions, incentives and any type of rewards programs by offering the latest in premium content that will engage consumers worldwide, with attainable low-level rewards. Consumers can redeem rewards instantly to access the very latest in digital content in 12 languages, including millions of music tracks, mobile phone apps, games, eBooks, audio books, and soon casual games, digital magazines, movies and TV shows to engage with their favorite brands. the first club™ solutions are easily integrated into existing loyalty and reward programs, are cost-efficient and scalable to encourage low level reward redemption, increase customer loyalty and create additional revenues for brands. For more information, please visit , or the first club™ consumer site, .