Consumers are drowning in incentives. From rewards for shopping and switching services to bonuses for engaging and performing at work – it’s no wonder the allure of incentives is starting to wane. We’re facing a kind of incentive fatigue, and as marketers, it’s our role to recognise this shift and explore how we can make our incentives truly resonate with our audiences again.
So, what’s the solution? Do we simply up the ante, offering bigger and better rewards to outshine competitors? While adding an extra zero to the budget sheet might seem the obvious choice, we all know deep down that it’s also wholly unsustainable.
While increasing the monetary value of incentives might drive customer acquisition in the short term, it also sends costs sky-high, eventually making offering rewards and incentives unviable for businesses altogether. But perhaps there’s another way forward.
Consumer preferences for loyalty rewards
In our recent whitepaper, Bridging the Loyalty Gap, we surveyed 4,000 consumers from across the UK and the US on their preferences for loyalty rewards. Top of the table, 48% listed monetary value as an important factor for a good loyalty program. 45% listed ease of use, 42% the variety of rewards offered, and 35% the speed at which loyalty rewards are delivered.
Sure, consumers want value from their rewards, but that isn’t the only thing they’re telling us they care about. The desirability of a reward or incentive encompasses the entire experience surrounding it – the journey from when a customer receives it to when they redeem it.
Breaking through the incentive noise
This information can be used to break through the incentive noise and outperform competitors without increasing the monetary value of the reward or incentive you offer. What’s the common thread through all these factors? Each one – value, ease of use, variety, or speed – plays a role in creating a positive emotional response.
These elements turn a simple reward into something special that sparks joy, transforming a forgettable transactional exchange into a memorable experience by making people smile. That’s the ultimate goal of any incentive, isn’t it? To evoke a moment of happiness, surprise, and delight that underpins why rewards and incentives are such a powerful marketing tool in the first place.
The power of surprise and delight
So, as we gather at the IMA Summit in London, let’s keep this spirit of surprise and delight at the forefront of our minds, remembering that we, as an industry, hold the power to cut through the noise by returning to what makes rewards and incentives so powerful in the first place – they make people smile.
And we’d love to make you smile, too! Be sure to swing by Tillo’s stand at the IMA Summit in London to find out more.
