A: Whatever you redeem it (them) for!
However, if they sit on a statement and do not get redeemed, they are worthless.
(I do find it a bit weird that I am writing about points as ‘them’ and ‘they’, making them personal. For me they are personal, they are mine! I have earned them! I guess the terms and conditions might say something different – a topic for a future post.)
According to our latest research ‘for love or money 2016’, only 54% of members feel they take advantage of most of the rewards and benefits available to them through their loyalty program.
Nearly a third (31%) said they DO NOT and 15% said they don’t know.
So, if taking advantage of rewards is an indication of a member’s engagement with a program, this highlights the need for programs and hence the brands, to make more effort to engage their members and encourage them to redeem their rewards (if they have enough).
Or maybe some programs will let the points just sit on a statement or even let them disappear into an expiry pit, along with their customers!
‘No expiry of points’ is the number one of all 24 ingredients to a successful program that members value the most! (See list of 24 ingredients to a successful program in the full 80+ page report of ‘for love or money 2016’)
So this is a call to action for loyalty program managers of all programs where members accumulate points or rewards!
Make sure more than 54% of your members are taking advantage of their points / rewards stockpile, after all that is the point (sorry)!
Redeemers are better than just earners as the return motion is there – I earn (spend at your brand), I redeem (I get rewarded) and I come back again and again…
(The actual earning of points and earn rate is not a topic of this post, however is certainly one for the future).