Next year, loyalty programs will undergo a double facelift.
First, sweeps and contests will become a staple of the programs as a means to recruit new members and add excitement to standard programs. The promotions catch consumers’ attention and then allow the brand to educate them about the details of the loyalty program.
Second, collect-and-earn points programs that traditionally allow members to redeem points for merchandise will be enhanced with an option that allows members to use points to enter a contest for a chance to win prizes—everything from world-class trips to flat-screen TVs.
As an example, under the Miller’s High Life Extras program, the Lucy Bicycle Multi-Sweepstakes was the most redeemed catalog item. Last summer, members had a chance to win the bike by spending their loyalty points each week for an entry.
Overall, the program saw a dramatic number of points spent on the chance to win, burning nearly twenty times more points than if the bicycles were posted as a reward catalog item. Another perk? This was an effective engagement tactic as 43% of members who entered the sweepstakes spent their points for the first time in this promotion.
“It’s the flexibility that online offers for loyalty,” says Matt Kates, vice president of strategic services at ePrize, LLC, which ran the promotion.
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