A continuing loyalty conversation centers around redemption, from those who consider “breakage” (lack of redemption) only as an advantage for the issuers (who save the expense of fulfilling a redemption), to those who realize that, simply put, “redemption is good.” Good because it engages the customer and proves program value and, therefore, inspires the customer to continue the relationship and earn further rewards. In fact, COLLOQUY has proven that customers who redeem, particularly multiple times, are more valuable overall than those who don’t.
So we cheer the companies who encourage redemption. There are a variety of ways to do so, of course. But myself, I especially appreciate the ones that speak directly to each customer, helping him or her visualize what’s immediately available with current point accruals–as well as what might be obtainable with a bit of future spend.
I appreciate, too, inventive attempts to grab the program members’ attention in the first place. In that regard, a company in the “redemption is good” camp having a bit of fun is CVS/pharmacy, which recently introduced a campaign to encourage customers to redeem their rewards in its < em>ExtraCare Rewards program. “MoneyTrashers” is the name of the campaign. ExtraCare customers earn ExtraCare Bucks, displayed on their receipts, that are redeemed in future visits by turning in those past receipts. Customers who toss out those receipts, the campaign emphasizes, are simply lining a wastebasket with This isn’t money.
MoneyTrashers is direct and funny–the latter quality emphazized by a series of humorous videos driving home the point. One is a self-described “mockumentary” about abandoned receipts, brought to you by “People for the Equal Treatment of Cash.” Find the videos here on Facebook–where customers can get social and vote for their favorite.
What particularly stands out is just the pure fact that the campaign is dedicated to importants element of loyalty program success: redemption, and customer recognition of its value. As well, in times when loyalty reward prograns can serve as economic “helping hands” (the very topic of our cover story coming out at the end of this week, by the way, with further thoughts from CVS/pharmacy, by the way) the savings message can be particulary effective.
And as a final note: part of the promotion’s timing results from ExtraCare celebrating ten years in the marketplace this year. Happy anniversary.
