Thinking about launching a rewards program? While high redemption rates are often seen as the ultimate goal, the true value of rewards lies beyond the click: the perceived value of your rewards can be even more impactful than actual use.

Why? It’s all about emotional connection. Every reward, even unused, tells your audience, “We appreciate you!” This fosters loyalty and positive brand associations.

Think of it this way: you wouldn’t judge a restaurant on the number of unfinished meals, right? The delicious aromas, attentive service, and overall experience contribute to a positive impression, even if not every dish is finished. Similarly, rewards create a positive brand experience, even if not every reward is redeemed.

Here are some benefits:

• Positive Reinforcement: Rewards trigger dopamine, the “happy chemical,” creating a positive association with your brand even if they’re not redeemed. This builds a foundation of trust and appreciation.
• Status & Exclusivity: Feeling rewarded makes customers feel valued and appreciated, boosting loyalty and engagement. They’re more likely to participate in future programs.
• Brand Advocacy: The joy of anticipation is powerful! Even unclaimed rewards fuel positive conversations and recommendations. Customers share their experiences, generating valuable word-of-mouth marketing.
• Brand Perception: Rewards signal generosity and customer-centricity, enhancing your brand image in the eyes of potential customers. This attracts new business and strengthens your market position.
• Personalisation: Tailoring rewards to individual preferences shows that you understand and appreciate your customers on a personal level. This fosters deeper connections and loyalty.

The benefits extend beyond just warm fuzzies:

• Increased Customer Lifetime Value: Rewards encourage repeat purchases and deeper engagement, ultimately leading to higher CLTV for your business, compensating for unclaimed rewards.
• Data & Insights: Even if rewards aren’t redeemed, analysing campaign data provides valuable insights into customer preferences and behaviour, informing future marketing efforts.

But what about unclaimed rewards? Aren’t they a lost cost?

Breakage (the portion of issued rewards or other incentives that ultimately go unused) is a cost that’s difficult to predict and budget for, and it can wreak havoc on even the most carefully crafted campaigns. However, strategically used, it becomes a powerful opportunity to boost your bottom line and fuel your next marketing campaign. It’s

But how do you unlock this potential? That’s where our Rewards Risk Coverage comes in.

Rewards Risk Coverage leverages breakage assessment, along with other factors, and locks in a fixed price for your campaign. No surprises, just predictable costs upfront, and freedom to strategize. We tailor coverage to your program, so you get peace of mind and maximum ROI.

• Budget accurately: With a guaranteed cost, you can budget more effectively and avoid unplanned expenses.
• Eliminate unknown risk: Take the guesswork out of promotions and focus on what matters most: attracting and engaging customers. By focusing on success, not spreadsheets, you get to unlock your campaign’s true potential.
• Protect yourself from additional costs: You’re never on the hook for more than the agreed-upon amount, even if redemption rates soar.
• Offer more attractive rewards: Because you know your maximum cost upfront, you can offer more valuable rewards to incentivise customers, making your promotion more effective.
• Alternatively, you can reduce the cost per offer to the customer: This can make your promotion more affordable and reach a wider audience.

So, how can you create campaign success beyond redemption?

• Focus on quality: Offer rewards people desire, not just discounts. Think experiences, exclusive access, or premium products.
• Personalise: Tailor rewards to different customer segments for maximum impact.
• Communicate effectively: Highlight the value of the reward and make it easy to claim.

Remember, rewards are an investment in relationships, not just transactions. By focusing on perceived value, you build a loyal community that’s invested in your brand.