Redemption: What customers really expect and how to get there

21 October 2019

Redemption is key to loyalty. Redemption is directly linked to emotions, engagement, commitment, advocacy, and so much more. But what does it take to reach what customers really expect?

From our recent research, we see that the biggest barrier to engagement in a loyalty programme is to be unable to redeem. Customers are excited if they do, and seriously frustrated when they can’t. You, as a brand, have to let them have an experience (redemption) to make them love you and rate you. Programmes that make it difficult to use rewards or have non-relevant rewards are rated as bad… So, unless customers experience redemption, they don’t rate the programme.

Burning drives Earning and Excitement. Members who redeem go on to earn more points with brands than those who do not.

So, what could eventually stop redemption from the customers’ point of view?

Our research reveals two main blockers: “I have to spend too much” and “I don’t get enough rewards”. Where you might think these two are the same blocker, it actually isn’t from the customers’ side: 

  • One is clearly about spending, meaning the value to spend is too high compared to the rewards
  • The second blocker is about the rewards and the quantity of it, the value does not come into consideration here.

From these, we can state that the customer mindset has changed. They expect value exchange and personalised recognition. If you do it right, you can excite them, make them feel recognised and compensated, meaning a much better engagement.