Gabi Kool, CEO at Loylogic, explains why Loylogic is constantly pushing the boundaries of global rewards solutions through innovative incentives and experiences.
When it comes to rewards, the loyalty industry continues to evolve. The idea of holding a limited number of items in a warehouse was replaced by the realization that the marketplace model is the only sustainable way to globally distribute rewards. Then there has been the rise of gift cards, which are so quick to redeem that many brands started to question the need for physical rewards.
However, brands are now buying into the principle that global rewards solutions must touch the emotions of members. Those really pushing the art of the possible when it comes to loyalty-related engagement are seeking truly engaging incentives – and solutions for that matter – which have a lasting impact and deliver return on investment.
It's this constant evolution that drives the ongoing success of Loylogic's incentivized engagement solutions. As innovators of the loyalty marketplace model, we're working non-stop to take the incentive industry to the next level.
Take our Rewards Hub solution. Optimised for large scale, multi-market engagement programs, success is powered by the right choice of authentic incentive experiences. We already have merchants in more than 50 different countries, we can provide physical and digital incentives to more than 150 countries across multiple categories, but we're constantly looking to evolve, always looking to see how we can help brands touch the hearts of reward program members.
Not all loyalty program members are equal
There’s a realization by brands that not all members are equal – and therefore giving everyone the same set of rewards with the same costs simply doesn't make sense. The idea that a certain program member has a different lifetime value is well-established in the marketing world, but the smart cost-per-point management that we focus on dictates that providing the right reward for that member, with the right cost, is critical for generating return on investment.
A program may have a certain member who is very engaged and touches the brand at multiple touch points, but they've never redeemed their points. The chances are their golden moment, where they can redeem their points create an awesome experience, hasn't yet arrived. These points have therefore become a liability for the program owner and it’s therefore critical that we bring in such a golden moment in the member's life as quickly as possible, and as many times as possible.
That’s one of the reasons why we have our virtual Rewards Visa solution, which enables points to be converted into currency and loaded onto digital wallets including Apple Pay, Google Pay and Samsung Pay, and members can redeem points instantly at 44 million merchants worldwide. A superior, real-time alternative to traditional gift cards, it enables the emotional spend through online or through bricks and mortar shopping, exactly when a customer wants and needs it.
Then there’s Rewards Play. Our platform that fully integrates into a brand’s rewards program to provide easy and quick micro redemption options with the chance to win the latest must-have products from the biggest brands…or win prizes that many members could never accrue enough points for. This turns points liability into engagement while reducing the redemption cost per point. For added flexibility it can sit alongside our Rewards Hub solution, providing more opportunities for brands to engage members and drive member equity.
Loyalty and brand alignment
The final trend that I want to pick up on – one that Loylogic is seeing increasingly in discussions with organizations – is around brand alignment.
Sustainability is a good example. We work with numerous global brands who prioritize sustainability, so it makes sense to offer a sustainability-focused rewards category.
It’s critical for program owners to know who their members are, why they are associated with the brand, their demographics, how many points will they accrue over a certain period of time, what values are important to them and, for global organizations, to know where their members are. With this information, Loylogic creates a reward portfolio for them that works, that touches the membership, which provides those golden moments.
Of course, every vertical is different. An FMCG brand's points program will be very different to an airline loyalty program, for example. Without going into the details of the price point matrix, a loyalty program would be doing a bad job in providing aspirational rewards to an FMCG Program member whose typical earning rate is, let's say, $30 per annum. Instead, the program needs to think about why somebody is engaging with them and the brand values and provide rewards that fit this persona. It might be where a Rewards Play solution comes in. On the other hand, a frequent flyer can earn much more each year, so the rewards incentive, the thing that will engage them, can be more aspirational or varied.
Creating memorable loyalty engagement
Whenever we are evaluating whether we should bring a new rewards category to market or not, our primary question is will it drive engagement right now? Will it really touch members' lives in a meaningful way? Is it inspiring the member? Is that really driving that engagement with the brand?
Buying a reward should be more than just a transaction. It needs emotion. A program member has earned their points from the association with the brand. If that association into a plain gift card that’s converted into a forgettable reward, then emotional connection isn’t made. What really creates a connection? For some it could be donating points to charity. For others it could be investing their points into fraction stocks to increase points value, while others might like to use their points to pay for life-changing education and training. Self-pampering and relaxation are also critical categories.
Whatever the reward category, effective incentivized engagement is all about creating talking points. That's achieved by creating golden moments – through the right solutions – that touch people's lives, and keeps them loyal to their brand of choice.
To find out how Loylogic can deliver the power of reward engagement for your brand, contact us today. Click here to submit your details and we'll be in touch.