Just Reward
“Just Reward” – Cartoon that illustrates how businesses are reinventing consumer loyalty programs.
Starting in the 1980s, Airlines like American and Delta introduced frequent flyer programs to reward customers with miles for each flight they took, and these miles could be redeemed for free or discounted flights.
These programs expanded to credit cards and retail, but the customer benefits were primarily earned rewards to purchase goods or services.
Also, Statistica reported that 45% of US customers claim that earning points takes too long to obtain and get frustrated with the reward redemption process.
According to the recently released The Loyalty Report, which interviewed over 60,000 consumers globally, many customers are now looking to be rewarded for engaging and interacting with brands.
Digital rewards that are tied to experiences are one way to address this.
“Imagine earning a unique digital collectible, whether it’s from purchasing tickets for a sports event or participating in an augmented reality treasure hunt,” said Pierce-Gilmore, SVP and global head of issuing solutions at Visa.
Visa recently partnered with SmartMedia Technologies, to create a new loyalty program that will enable brands to provide digital wallets to their customers so that they earn perks and benefits, such as online or real-world experiences in travel, sports and entertainment.
Similar digital programs are being extended with Circle‘s points-to-crypto scheme for Taiwanese convenience store chain FamilyMart.
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