London, UK | 12th July 2018
By Ivo Knottnerus, Sales & Business Development Director
A call to all Loyalty Program Managers: How do you reactivate the inactive members in your program? It is a fact that across the board 50-70% of the members of any given loyalty program today are inactive. The reasons are multiple and range from not finding enough interesting and engaging redemption opportunities, to not having enough points or miles in their accounts for a redemption in the first place and losing interest. What are you going to do about this? How are you going to activate the inactive members and re-engage them?
What if I tell you that there now is a solution to this problem?
Loylogic has just launched their new product called Buy, Gift & Transfer (BGT) points or miles with the sole purpose of creating engaged members and significantly increase the revenue stream for your loyalty program. The low-cost model compromises nothing in design, technology and functionality but offers programs and their members exactly what they need: straight forward points sales for excellent commercials. Buy & Gift enables your members to buy points for themselves or their loved ones, which are instantly credited into their accounts. Points Transfer enables a program member to transfer their loyalty currency out of their own account and into that of another member in the same loyalty program.
Sounds interesting, but why would I as a Loyalty Program Manager offer Buy, Gift & Transfer to my members?
There are 3 very compelling reasons to do so:
- Significant high margin revenue stream for your program
Buy, Gift and Transfer points or miles generates over $1 Billion in revenue for loyalty programs across the world. Loylogic can simply and seamlessly integrate the solution with your program and help you to succeed through full-service marketing plans (optional), best-practice and seamless operations and campaign analysis. BGT drives incremental revenue from your existing members and builds increased loyalty, because members are spending their cash on purchasing your program’s points or miles and redeeming them in your redemption channels.
- Cost effective and State-of-the-art solution
Your members pay per point purchased. Loylogic takes care of all processing fees, and you incur no operational costs. Loylogic’s commission is by far the lowest in the market today. Our quick and efficient implementation process gets you up and running in no time, with minimal effort from your IT team, so you can remain focused on your core business.
With a state-of-the-art solution whereby, we encourage you to integrate BGT in the redemption journey, for optimal user experience. We can offer you full marketing support or your experienced marketing team can continue to market BGT as they do today.
- Maximum Member engagement and satisfaction
As mentioned earlier, loyalty programs have huge numbers of inactive members. We all know, as one of the first laws in marketing, that attracting a new customer costs roughly five times as much as retaining an existing one and increasing customer retention rates by just 5% increases profits by 25% to 95%. (Bain & Co, 2018). Activating inactive members and engaging them is of paramount importance to you as a program manager and to your program.
The reasons for these high numbers of inactive members vary, but one of the key dis-engagers is not having enough points or miles in their accounts to do a redemption. It’s not a coincidence that the #1 segment for BGT is that of people looking into redemption but not having quite enough points to get it.
Loylogic’s solution helps to offer your members the opportunity to "top up" their account right there and then, i.e. in real time and in the redemption booking path. Ideally, the program makes Buy Points available in all redemption booking touch-points, including i.e. the call centre and (if applicable) ticket sales offices.
Convincing, but even if I as a program offer BGT, why would my program members consider just buying, gifting or transferring plain points or miles?
Well, there are a number of reasons for that, too. Buying, Gifting or Transferring points might just make their dream reward reachable. Your members might find themselves in situations where only a small number of extra points are needed to redeem for a reward or even their dream reward that they are after for a long time already. The option to buy points is then a logical and very intuitive thing to do (and thus offer). Members will use the option.
There are also situations when there are no other (interesting) reward options available. This stimulates members to buy points, top up their account, and redeem for the award they want, thus offering more choice. Offering choice hugely increases the (perceived) value of your loyalty currency.
When it comes to gifting or transferring points or miles, these are great options for people to give for example the aspirational gift of travel to their loved ones.
This has become much more popular recently as global travel has soared in the last couple of years. Giving points offer another way to help your member’s loved ones fulfil their reward ambitions, and for your program to stay relevant. For example, as a program you could routinely offer bonuses, for BGT in this attractive pricing model, giving your members more bang for their buck and making these options more attractive.
To conclude, as mentioned above, it is known from industry intelligence in the loyalty sector that between 50-70% of program members are inactive. What if you could get 5% of these in-actives activated and re-engaged? If these are the questions that you and/or your program management are pondering, we are happy to demo our new solution to you.
