Make Rewards Irresistible: 7 Ways to Motivate Customers to Redeem Rewards

It’s your reward, you’ve earned it.  Now use it!  Believe it or not, sometimes it can be a challenge to get members to redeem their earned rewards.  It doesn’t make sense, but at times it is true.

Reward redemption is one of the best ways to get members to see the value of their program.  An expired redemption is a lost opportunity to reinforce the fun and “stickiness” the program was designed to provide.  If you find that, for whatever reason, your redemption percentage could use a boost, below you’ll find seven ways to motivate members to use their benefits.

1. Create a Sense of Urgency

Limited-time offers, expiration dates, and limited quantities can encourage members to act now.  Creating a sense of urgency can get members to act more quickly.

Techniques to create urgency:

• Send reminder emails or push notifications to avoid reward expiration
• Use countdown timers on websites or apps, showing time left to redeem
• Highlight expiring rewards in bold colors or attention-getting graphics

2. Personalize the Reward Experience

Personalization works wonders in loyalty programs.  Tailor rewards to a customer’s preference or purchase history and they become more enticing.

Ways to personalize:

• Offer rewards based on buying habits like discounts on their favorite items or categories.
• Send personalized emails with customized offers highlighting items they may enjoy.
• Use customer data to suggest products or services that align with their interests or past purchases

3. Offer Exclusive and Desirable Rewards

Offer appealing rewards that your members will value.  Rewards will need to be enticing to get members motivated to redeem them.  Exclusive or limited-edition items can be perceived as highly valuable, especially if they can’t be obtained anywhere else.

For example:

• VIP access to new product launches or member-only events
• Free services such as home delivery, free upgrades, or VIP customer service
• Unique experiences, such as back-stage/behind-the-scenes tours or private      shopping sessions             
• Collaborations with popular brands that offer co-branded rewards                                                                               

4. Simplify the Redemption Process

Multi-step, complicated, and/or time-consuming processes can discourage members from using their rewards.  Make redemption as easy as possible.  When possible give the option of redemption online or in-store.

 Simplified Tactics:

• Offer a one-click redemption option in your mobile app or website
• Ensure the redemption process is clear and straightforward, with easy-to-follow instructions
• Allow members to use their rewards across multiple channels like online, in-store, or through customer service
• Consider integrating rewards with mobile wallets or digital payment systems

5. Communicate Regularly with Members

Keep your program top of mind by communicating frequently with your members.  Show them their points balance, new rewards available, and limited-time promotions to encourage them to take action and redeem their rewards.

 Communications Strategies:

• Send our newsletters that showcase new rewards, special promotions, or exciting program updates
• Use SMS or push notifications to remind customers of their available rewards or exclusive offers
• Utilize social media to highlight loyal customers, reward milestones, and foster a sense of community

6. Integrate Rewards with Other Marketing Campaigns

Integrating your program with broader marketing campaigns can increase engagement and make rewards feel like part of the overall brand experience.  Combining rewards with seasonal campaigns, product launches or sales events can boost excitement.

  Integration Ideas:

• Tie reward redemptions to holiday promotions, or flash sales to gain attention and make rewards seem even more valuable
• Promote rewards during key shopping events such as Black Friday, Cyber Monday, or special anniversary events
• Cross-promote with other marketing events such as email or social media ads to highlight attention around rewards

7. Encourage Social Sharing

Encourage members to share their experiences with your program and its rewards on social media.  This not only helps increase brand visibility, but it also builds a sense of community and social validation for the program.

Ways to encourage sharing:

• Offer bonus points or special incentives for social media posts about rewards or the reward experience
• Create shareable moments by designing unique, post-worthy packaging or experiences that members can share
• Launch referral programs that reward members for bringing in new members and encouraging them to also redeem their rewards

To obtain the maximum impact of your loyalty program, you have to do more than just offer rewards, you have to motivate your members to redeem them.  By using the tactics shown above, like creating urgency, personalizing the experience, and social sharing, brands can effectively encourage their members to use their rewards and stay engaged with the business.  After all, a reward is only rewarding, if it is used.

If you are looking to make your loyalty program a profit center, let’s talk!

Share

Kyle is a Client Success Director at Capillary Technologies. He has over 20 years experience in marketing, account management, field marketing and program development, specifically concentrating on loyalty and retention marketing. He also has an MBA. His experience comes from industries such as retail, e-commerce, consumer packaged goods, publishing, hotel & restaurant and quick service restaurants (QSR). He loves helping organizations build relationships with customers and seeing the positive benefits from those relationships.