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A high redemption rate is imperative for the success of your e-commerce loyalty program. But what if it is low? These tips will help you to boost it.
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Introduction The redemption rate of a loyalty program is the percentage of points issued by you and redeemed by your customers. An average reward redemption rate is impacted by multiple factors like industry, the perceived value of rewards, ease of redemption, overall program awareness, and more. When you run an e-commerce loyalty program, this metric plays a significant role to figure out its effectiveness. That’s because it determines how many points are actually being redeemed by the customers. If they actively engage with your program, they will redeem their points by increasing this shopping frequency. However, if they don’t redeem them, it is a matter of concern and could impact your program adversely. Here we have explored a few ways to encourage your customer to redeem earned points and improve your reward redemption rate.
Offer Multiple Ways to Earn Points A program that offers customers multiple ways to earn points is more appealing and engaging. When you allow customers to earn points for actions beyond signing up and making a purchase, you make it more desirable for them to return to your brand and stay engaged. One of the best ways to do that is rewarding them for social media likes or comments, referring friends, providing feedback, or celebrating a birthday. No matter how you choose to do it, offering more ways to earn points is a surefire way to increase the redemption rate as well as sales.
Set Expiration Date for Rewards Psychology states that our efforts to avoid a loss are far more than our efforts to gain a profit. Considering this, you can set an expiration date for points. It will motivate your customers to redeem earned points knowing that they are at risk of losing them. However, there is a fine line between boosting the redemption rate and causing dissatisfaction to customers when setting expiry conditions. So, make sure that the expiry date you set adds value to your customers, not stresses them.
Send Reminders to Redeem Even with a perfect customer loyalty program solution, you can have a low redemption rate if your customers don’t know that they have points to redeem. Sending reminder emails indicating their point balance along with the expiry date can develop a sense of urgency in their mind and encourage them to redeem them before they expire. Also, make sure to add a clear CTA in the email to redirect your customers to your online store.
Clarify the Value of the Points Research reveals that 57% of customers do not know their point balance, and 38% are unaware of their points value. If you issue points, make sure to clarify how customers can earn them and what’s their worth. Thus, you can make it easy for them to redeem points and share your program’s value among kith and kin.
Get In Touch With US: CheerMe is the leading tier-based loyalty program provider, which helps businesses to build an emotional connection with customers through surprise and delight. With our customer loyalty program solution, you can gift exclusive points to your customers for on-site or in-app actions including, signing up, placing an order, etc. and these points can be redeemed by the customers in the form of discount or coupons on their next purchase. Thus, CheerMe can encourage your customers to shop more from your online store and give them a reason to stick to your brand. CONTACT US • Email:connect@cheerme.io • Phone: +91-8264829512 • Website: cheerme.io/
