The rewards of the future
The loyalty sector is still stuck in the Dark Ages – and it shows. Incent believes the future for rewards could lie with cryptocurrency, and it is on a mission to drag rewards into the 21st century!
Everyone seems to love the idea of loyalty programmes, but far fewer people love them enough to actually use them. There’s something about the idea of receiving something for nothing that, understandably, appeals to most consumers. The problem tends to be that you get what you pay for.
A recent survey from the UK suggests that under-34s – the highly-desirable millennial demographic – are the biggest users of loyalty programmes, with some 70 percent ‘regularly’ collecting points. However, that doesn’t necessarily translate to engaging with those loyalty programmes: only 47 percent bother even to claim the reward points they are owed.
The same survey indicates that 83 percent of UK consumers are a part of at least one loyalty programme (and that, incidentally, women tend to be slightly more loyal than men).
What’s is the future for rewards programs and what do we think is wrong with them?
But perhaps most interesting was what consumers thought was wrong with loyalty. Over a quarter said that the customer experience would be improved if there was an app that allowed them to view reward points – a number that leaps to 41 percent for 18 to 34 year-olds. Additionally, a quarter of respondents said they would value rewards that were personalised based on past purchases, and a quarter said they wanted instant notifications about rewards.
In an era of on-demand services, powered by smartphones and mobile devices, none of this should come as a surprise – but a large proportion of the loyalty sector is still operating on plastic cards or even paper tickets and stamps. It’s clear that loyalty has suffered from decades of under-investment, as retailers cut costs both by undermining the value of their own points and by neglecting to plan for their own future. Loyalty is stuck in the past, using an outdated business model and outdated tech. No wonder it doesn’t offer anyone much worth having.
As Yoyo’s CEO Michael Rolph comments,
‘This data clearly shows that British consumers are positive about the value of retail loyalty schemes, and it’s become a regular habit for them to collect points when out shopping. The problem lies in what happens afterwards, with the survey showing either confusion or dissatisfaction on what consumers should do with their loyalty points.’
‘From the survey’s findings, it’s clear that consumers, especially 18 to 34 year-olds, believe a mobile-led strategy would vastly improve the delivery of loyalty schemes, whether it’s an end-to-end app-based loyalty scheme experience, personalised rewards based on past purchase behaviour, or digital vouchers that consumers could instantly use through their smartphones.’
Loyalty based around a mobile app, with instant notifications and intelligent offers from a wide range of sources, and that can be tailored to the consumer’s habits and preferences.
That somehow sounds familiar. Find out more by visiting Incent.com.
Find out how mobile-led rewards that offer real value through a blockchain-powered loyalty token can transform your business. Send us an email at email@example.com or join us on our Community Slack.