Experiential Rewards are the answer
Posted by suzanne.impiombato | 28 August
Experiential rewards are perceived as a “powerful engagement and loyalty tool”*, ultimately bringing added value to a brand. As the largest and most experienced lifestyle marketing agency in our sector, TLC understands the importance of experiential rewards in today’s competitive marketplace.
“Brands that are incorporating strategies to offer experienced based rewards in their loyalty programs are going to win and retain more customers compared to companies just offering discounts.”
“Simple discounts do not give people an experience that touches their five senses.”**
While discounted prices and coupons may cause consumers to purchase products, there is also a risk in continuously using the same method to increase sales and engage customers. “Some customers may appreciate discounts, but then your company may find itself in the conundrum of the only thing you have to offer is a low price point.”***
Experiential rewards are therefore the answer to customer engagement, enhanced brand identification and an increase in customer loyalty.
Rewarding consumers with experiences rather than discounts means that consumers are receiving personalised rewards based on individual purchase behaviours and preferences. Experiential rewards such as TLC’s cinema offers, concert tickets, fun passes and group personal training sessions form a memorable and emotional connection between the consumer and the brand. This, in turn, creates a lasting bond, allowing the consumer to have an appreciation for that particular brand as they associate their unique experience based reward with the brand itself.
Experiential reward offerings have been on the rise since 2012, with 62% of retailers now adjusting their budgets to accommodate loyalty schemes and rewards.
TLC has been a leader in promoting experiential rewards since 1954, based on the belief that brands should add value rather than discounting, and that added value should reward everyone. From Loyalty to retention, acquisition and sales uplift, TLC believes in making a measurable difference:
- Sony Mobile Communications achieved success sales uplift with 24.3% higher than forecasted figures.
- MLC Insurance have seen a 16% increase in check to direct payments and 3.5% increase in retention on the MLC anniversary reward program
- Australian Vintage Wines have been rewarding loyal customers which seeing a sales increase of 14% on the McGuigan Bin Series selection.
**Broadbent, Andrew 2015
***Broadbent, Andrew 2015