The point of points is success!

Points-based loyalty campaigns may sound pretty boring and vanilla, but the tried-and-true loyalty points are used as business and marketing staples for a reason – they work.


Your customers are already comfortable with earning reward points for their purchasing behaviour. The fact that loyalty programs are 10x more effective than the old traditional types of marketing and customers love them shows why you should have a points-based loyalty program.


As well as your customers being instantly comfortable with a points-based loyalty program, the good feelings and endorphins created when they get closer to their reward excites and delights your consumers while positively reinforcing your brand.


The simple fact that almost every major retailer successfully uses a points-based campaign to reward their members really speaks for itself.


Qantas: Even before the COVID-19 crisis, Qantas Loyalty (which uses a points system) - was the company’s fastest growing division and has continued bringing in cash and earnings during the pandemic.


Coles & Woolworths: Australia's 'big two' supermarkets offer points-based loyalty programs that give points on spend amounts - with bonus points on specific products. The points can be redeemed for rewards in those same stores.


Myer One: MYER has more than five million Myer One membership cards in circulation. Members earn points based on purchases. According to the company, online demand has risen so much (800% over Easter 2020) – that the company has been able to rehire 2,000 workers to help with online fulfilment orders.


Harley-Davidson: Using a loyalty points solution has quickly grown Harley-Davidson New Zealand membership by 300+%. Road and Sport Harley-Davidson in Hamilton, New Zealand surpassed all other dealers with over 90% of all customers being members. They have repeatedly been crowned the ‘Best Harley-Davidson dealer in Australasia’. Here is link to a Loyalty Q&A with the dealer principal: https://www.iqgecko.com.au/road-sport


POINTS ARE FREE: You can give away as many points as you want for free. Loyalty members spend up to 18% more than non-loyalty members - so while the goal is to bring the customer back more often and increase their spend amount, you can also rest comfortably knowing that only when points are redeemed is any cost incurred.


The good news gets even better. Even when points are redeemed for rewards, your customers have a perceived rewards value based on the Recommended Retail Price (RRP) where the costs are only your cost for the materials to give the reward - so they are at wholesale prices.


Using a restaurant points-based program as an example, at 5 x points per dollar spent, members need to spend $100 to earn enough points for a $5 coffee which has a wholesale products cost of about 30¢.


So while your very happy and loyal customer receives their $5 coffee reward for free, the restaurant has effectively improved customer engagement, retention and goodwill at only a cost of only 0.003% of the customers $100 spend. This demonstrates that a points-based loyalty program is the best ROI value marketing campaign that your company will ever enjoy.

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