Know your redemption rate
How do you know if your redemption rate is low?
One of the best ways to gauge your success is by comparing your business with one that’s similar. Since this information is hard to find, we did some digging into the thousands of outlets running Froogal’s Loyalty Engine to find some averages for you to compare to!
“The average rewards program has a redemption rate of 13.67%.”
Based on our data, the average loyalty program has a redemption rate of 13.67%. As a result, if your current redemption rate is less than 13.67% your program is performing below average.
While there are a number of factors that can influence your redemption rate, the age of your program is the most important. At Froogal we recommend giving your program at least 6 months to evaluate its effectiveness. This is because your shoppers require time to adjust, accumulate points, and get rewards.
Improving a low redemption rate
If you just discovered that you have a low redemption rate, don’t worry – you can still fix it! Since a low redemption rate is usually the result of a low participation rate, solution is to build a program that gets people more excited to engage.
1. Offer multiple ways to earn points
“Rewarding customers for following you on Instagram, Twitter, and Facebook can increase your redemption rate by more than 16%.”
Improving your program participation starts with how exciting it is to earn points. After all, that’s how customers start to see the value in becoming a member!
A program that has more ways for a shopper to earn rewards is more exciting and therefore more engaging. When you offer customers the opportunity to earn points beyond simply registering an account and making a purchase, you make it more desirable to become a member of your rewards community and engage over time.
2. Offer different rewards
“Diversify your rewards menu with perks like free shipping, exclusive products, and experiential rewards.”
There are a ton of different rewards you can offer as part of a loyalty program. If you’re running a VIP program, why not offer experiential rewards or exclusive products to your top-tier customers? You could also offer incredible perks like free shipping or store credit alongside straight discounts to cover all of your reward bases.
3. Use onsite banners
Sometimes your customers might forget that you offer a loyalty program, especially if they can’t find it on your website.If they can’t find it, they can’t engage with it!
Thankfully there are a number of onsite banners you can use to remind them how awesome, simple to join your loyalty program is. Ensuring more customers can find it whether its their first visit to your store or their third.
4. Send redemption campaign emails
Email is one of the most effective program engagement tools you have at your disposal. This is especially true when you use it to remind customers how close they are to a reward or that they already have a reward available to redeem!
Brands like Affliction Clothing use this strategy. By letting customers know how many points they have and crafting a subject line which clearly communicates what’s inside the email, Affliction is able to motivate them to return to their store and take advantage of the value they have already earned.
With Froogal, these emails can easily be incorporated into your existing campaigns, making them the perfect complement to your other program marketing strategies.