Read time 2 mins
Author Sophia 🌱
A well-crafted loyalty program can foster customer relationships and drive repeat business, but what makes a loyalty program truly effective?
We’ve got the answer.
Based on findings in our recent research, Bridging the Loyalty Gap: Consumer Insights for Fintech Engagement and Growth, we’ve identified four key pillars that form the blueprint for a successful loyalty program.
Source: Bridging the Loyalty Gap Whitepaper
Nearly half of the participants in our Bridging the Loyalty Gap study indicated that the monetary value of rewards is a crucial aspect of a winning loyalty program.
This priority becomes even more pronounced with age, peaking at 60% for consumers aged 75-77, highlighting that older consumers are more sensitive to financial benefits.
Having a loyalty program is one thing, but ensuring it is easy to use is another. Our research found that ease of use is almost as vital as the rewards themselves, with 45.15% of participants placing emphasis on a seamless user experience.
Whether it’s a simple sign-up process, intuitive navigation, or easy-to-understand reward mechanisms, a user-friendly loyalty program ensures that customers can effortlessly engage and redeem their rewards, enhancing their overall experience.
Consumers don’t want to wait to redeem their rewards - they want to be able to use them now! Long processing times for reward redemption are a significant concern across all age brackets, with 35.40% emphasising the importance of quick redemption.
Winning loyalty programs that can guarantee a swift and hassle-free redemption process are likely to lead to higher levels of customer satisfaction and continued participation.
Variety in rewards is a critical factor, with 41.86% of participants wanting a broad selection of rewards. However, our data also suggests that the breadth of brands available for loyalty point cash-out is less critical, indicating that quality trumps quantity.
A curated selection of high-quality, desirable rewards can make a loyalty program more appealing without overwhelming the customers with too many choices.
Did you know the ideal number of brands people want to choose from is 34?
See how a Tillo ChoiceLink makes offering Choice as easy as sharing single-brand rewards.
Valuable, easy to use, quick to redeem and flexible, digital gift cards tick all of these boxes and what’s more - consumers love them!
In our research, gift cards emerged as the most universally attractive form of reward, with 67.52% of consumers listing them as their top most attractive reward.
Moreover, this preference remained consistent across all of our surveyed demographics, making digital gift cards a versatile and effective component of any loyalty program, no matter who you're marketing it to.
Ready to transform your loyalty program with digital gift cards? A seamless integration to Tillo’s award-winning gift card API gives you access to our extensive brand catalogue, making it easy to offer compelling rewards that delight your customers.
Keen to find out more? Contact us today to learn how we can help you bridge the loyalty gap and drive long-term success with loyalty rewards your customers love!
