Is Earn and Burn Loyalty Still Relevant and Effective?
It is a global norm, that when it comes to serious matters, people rely on people they know and trust- be it a doctor, a hairstylist or a financial expert. The same goes for most marketing and loyalty strategies and in this case – Earn and Burn Loyalty.
What is Earn and Burn Loyalty and How Does it Work?
When you think about loyalty programs in general, earn and burn loyalty programs are what you usually think of. It is the simplest yet most effective loyalty strategy. Customers earn points through activities assigned by a brand and burn or redeem the accumulated points in exchange for discounts, rewards or incentives. The concept is synonymous with $1 = 1 Point.
The reason behind the success of this phenomenal strategy is its simplicity. Customers, globally, understand this concept and are more than willing to put their money on something they know, understand and trust. Customers are attracted to these programs because most customers understand and believe in the concept of ‘earning and saving for later’, it is reliable, tried and tested. Earn and burn loyalty also acts as a solace to seasoned or frequent shoppers. It gives them the leverage to spend more, so that they can win later through their loyalty redemptions.
The Cons of Earn and Burn Loyalty Programs?
- Lack of Novelty and Market Saturation – The earn and burn concept or loyalty points program is an age-old concept and one of the most widely used globally, which says a lot about the efficiency of the method but it comes with the drawback of market saturation. The concept lacks novelty and there is always a fear of being copied by the competitor. The competitors can offer better rewards to your customers in order to attract them to their brand.
- Extensive Process – Although the concept and methodology behind earn and burn loyalty programs is simple, it takes an experienced team to launch and execute the program to ensure high efficiency. Loyalty partners like Annex Cloud, not only design bespoke loyalty programs but also ensure that these programs run smoothly and bring home maximum ROI.
- Reinforces the Discount Culture – There is a lot of stigma attached to the discount culture and it doesn’t help that earn and burn programs reinforce that. Some may view it as a trade-down or it may, although not necessarily, have long-term effects such as customers may only remain associated with the brand on a superficial level- basically rewards.
- Requires Time, Money and Resources – To reap the full benefits of a loyalty program, you need to invest your time, money and resources. Managing a loyalty program is not a one-man job. However, with the help of a loyalty partner, you can swiftly manage and run your program.
Practical and Relevant Ideas to Elevate Your Earn and Burn Loyalty Programs
- Empower Your Customers – Create an earn burn ratio loyalty program in which the customers feel empowered and in charge. Small personalization can go a long way in boosting customer’s affinity towards a brand. Let your customer choose their rewards from your catalog and create a dynamic program that centers around the customers.
- Offer More Than One Way to Earn Points – Your businesses and marketing goal may not be one dimensional and your loyalty program doesn’t have to be either. Based on your marketing agenda, offer more than one way to earn points. For example, if you are looking at customer acquisition, reward your referrers. Similarly, with the help of a smart loyalty partner you can achieve your business goals by means of your loyalty program.
- Join Hands with Charity Organizations – Partnering with a charity can help you project a socially responsible image. Let your customer join in too, through your loyalty offering. Allow the customers to donate their loyalty redemption for a good cause or a charity. This will not only create a ‘feel-good’ factor but also strengthen the ties between you and your customers.
- Partner with Other Brands – Why limit your rewarding option due to financial constraints? Partner with other brands and give your customers a larger palette of rewards to choose from and improve their scope of loyalty redemption. A coalition program can be beneficial to both the parties and make the customers happier too.
- Aspirational or Experiential Rewards – The new way of rewarding customers is by giving them something of real value – experiences! Your rewards don’t always have to be tangible. You could create either aspirational or experiential rewards.
- Reward Social Sharing – However imperative, creating a strong social media presence can be a daunting process. With the help of your loyalty programs not only can you create authentic user-generated content but also a strong online presence. Reward your customers for sharing your posts or writing reviews and feedback. It will bring attention to the brand through organic promotions.
Creating The Perfect Earn and Burn Ratio Loyalty Programs
How can you improve the efficiency of one of the most commonly used loyalty strategies? The answer is with experience and expertise. With the help of a skilled loyalty partner, you need to design a loyalty program that reflects your brand image and meets your brand guidelines. The earn and burn loyalty program must be designed specifically to achieve your business and marketing goals while improving the overall customer satisfaction rate and attracting new customers.
Annex Cloud has received the highest possible rankings in 15 criteria of the new Forrester Wave. With the extensive experience of empowering brands, Annex Cloud has carved a niche in the loyalty industry. To learn how you could benefit from the expertise of Annex Cloud, click here.