Loyalty programs are subject to trends and developments, and at TritonX, we are always evolving. Several key trends are emerging in loyalty programs within retail. The fact that loyalty rewards need to work seamlessly across both online and offline channels has become a must for every retailer. The most important new trend? It’s the shift from a loyalty system purely based on transactions (the Transactions Based Reward Program) to a diverse, flexible, and personalized loyalty system.
This shift involves rewarding customer behavior, proactively offering gifts and specific member privileges, and giving customers the freedom to choose, all while ensuring availability across all touchpoints. This new development focuses on the evolution of loyalty modules – in this learning, we’d like to share more about the new features surrounding loyalty.
Obsolete Points Trigger – Expiring reward points as a trigger
Tip: Give accumulated points an expiration date. If a customer becomes less active than before, a simple email saying “Redeem your points before they expire” can be a highly effective way to reactivate the customer.
Some advantages of the obsolete points trigger function:
- Increased Customer Retention: A key psychological aspect of point accumulation is the limited shelf life. The desire to avoid losing points encourages customers to redeem them, which drives associated purchasing behavior.
- Staying Top of Mind: Making points expire helps keep your brand at the forefront of customers’ minds.
- Increased Spend: Research shows that customers who redeem their reward points tend to spend significantly more afterward. A rewards program fosters reciprocity: the customer gets something and feels obliged to give something back.
Free-Gift-Coupon – giving first, then taking
With the free-gift coupon, you can offer a coupon for a free product to a customer. The difference between such a coupon and a 100% discount is that the free product coupon is automatically applied and added to the transaction. This convenience benefits both store staff and online customers, as it requires no additional effort. Offering a free product is a powerful strategy to attract, reward, and retain customers.
Some advantages of offering a free product:
- Boost Customer Satisfaction and Loyalty: Customers appreciate receiving something extra, especially if it’s relevant to them.
- Highlight products: Free testers or products allow customers to try new items.
- Stimulate new purchases: A free item with the purchase of another product creates urgency and encourages customers to buy sooner.
- Strengthen your position against competitors: Free giveaways give you a competitive edge, as customers – especially when products are highly comparable – are more likely to choose the brand offering that extra benefit.
Reward Points – Reward customer behavior with points
It happens everywhere: people are rewarded for doing the right things. In retail, it’s still not very common. Take the “return problem” as an example. For every retailer, ideally, every return is one too many. But why not reward customers who don’t return items? Consider offering reward points or discount coupons to customers who keep their purchases. This nudges customers in the right direction, reduces returns, and gives customers a reason to return in the future.
Advantages of rewarding based on return behavior:
- Customers are less likely to order multiple sizes.
- Fewer returns lead to lower processing costs (typically around €12.50 per return).
- Rewarding customers who don’t return items increases the likelihood they will continue not to return.
Another example of rewarding behavior is setting up a “jubilee flow.” A long-time loyal customer might find extra reward points more appealing than a one-time coupon. So, to celebrate an anniversary – “Hooray, you’ve been a customer for five years!” – it’s now possible to provide them with extra points: “That’s why we’re giving you 50 bonus points!” This has a double benefit: they feel valued and have an added incentive to make another purchase.
Invite a friend!
A well-known feature that’s now easy to implement: Invite-a-Friend! When a member invites a friend and the friend creates an account via the personal invitation link, both parties receive their reward. TritonX provides a personal URL that can be easily shared via email, QR code, or the “My Account” area on the website. This makes it simple for existing customers to share their personal URL with friends, family, and acquaintances.
Advantages of the Invite-a-Friend feature:
- Reward loyal customers and strengthen relationships: You reward existing customers while strengthening their loyalty.
- Grow your customer base organically and cost-effectively: Let your customers help you grow by inviting their network.
- Boost your brand through word-of-mouth: Referrals through trusted networks help increase brand awareness and customer acquisition.
We’re here to help with new features
Are you curious about these functionalities and how to best implement them for your (online) store? Feel free to email your question to support@tritonx.cloud or schedule a meeting with one of our success managers at planning@tritonx.cloud. We’re happy to assist you!
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