Keep rewards real

Reward and loyalty programmes have become a hygiene factor in business, creating ‘coupon and card’ clutter from which they must differentiate themselves, and if they get it right their gain lies in an elevated strategic contribution in the boardroom, writes Lianne Williams, Head: Marketing at Momentum Multiply.

In today’s economy, skinny consumer wallets may not be bursting with spare cash but they are bursting with reward and loyalty cards. There are over 10 million of these cards in South Africa, making them literally a ‘dime a dozen’ in retail, insurance and healthcare markets. As a result the strategic clout of such programmes needs to be weighted-up to ensure they do not become glorified discounted retailers.

To become a heavyweight strategic contributor, a turnaround in perspective is required. The focus of rewards and incetivisation needs to fall in line with the core business of an organisation. This shift in viewpoint will lead to authenticity, and relevance will follow suit because the programme is not trying to be ‘everything to everybody’. Relevance cannot be prescribed. It can, however be determined by providing clients with appropriate choices.

A case in point is the Wellness industry. Research undertaken by Momentum Multiply in March 2014 found that the top three ‘lifestyle interest and activities’ were Family/Friends/Entertaining/Cuisine (96%), after which Hobbies/Activities (95%) followed and then Sports and Health (92%). Holidays/Travel, rated fourth, trailed at 64% despite so many loyalty programmes in the industry heavily promoting such benefits.

Consumers are reward-savvy, knowing what a business and its associated loyalty programme should deliver. Underestimating consumer intelligence could be the first and last mistake for a brand. Rather than pushing the rewards programme, convey how the business is helping people meet their needs or realise their dreams. This approach will put a brand on the path to journey alongside clients.

The most effective of these programmes are highly integrated within their business. They are reward systems whose appeal lies in ‘what’s in it for the customer’, not the programme’s brand. Those that help drive acquisition, retention and have the potential to increase the amount of consumer touch points are the glue in an entity. Remove them and the loss is felt in other areas of that business, and it is the leaders of these programmes that will gain a voice at the boardroom table.

Any rewards programme must be mutually beneficial between the programme and client. Clients expect rewards to be tangible, quantifiable and relevant (practical/useful) to them and their lifestyles. Moreover, they expect the point calculation system to be easy and the joining and claiming process to be effortless. The importance of always getting something back and being able to choose from a variety of relevant options is also a client service priority.

As an industry, reward and loyalty programmes may have been around for many years, but its potential as a strategic participant has grown. Wellness in particular, whether in terms of financial wellness or physical wellness, has become a big player. Yet despite its growing allure, the fact remains that people may not choose a product because of the aligned rewards programme, but because they have a certain need fulfilled in their lives.

With this in mind, relevance is one golden rule that we would do well to keep. Of course, that, and keeping our rewards offering and approach real for people.