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Innovative Rewards Programs Enhance Customer Experiences and Drive Sales Lift

A new survey finds movie tickets to be appealing to a large segment of shoppers

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Shopper engagement has never been more complex, yet the impact of rewards programs remains strong — when the right reward is offered. Of the many competing factors that influence buying decisions, rewards programs continue to have significant impact on shopping behavior. According to a recent survey of 1,000 shoppers by Carbonview Research, more than half of shoppers indicated they will try a new product if that product is tied to a promotion. Promotions have greater influence on new product trials among convenience store (c-store) and grocery store shoppers than straight discounts.

Here are four key findings from the research:

 

1.Shoppers Are Fickle

Shoppers are quick to switch brands if their typical brand does not offer a promotion. The implication is that brands not running promotions risk losing customers to competitors who are. Over one-third of shoppers will even switch stores to take advantage of a promotion not available at the store where they usually shop.This is especially true for online and c-store shoppers.

While rewards programs clearly demonstrate a sustained and positive affect on shopper behavior, calibrating the right reward is equally important.

 

2.Promotions Drive Basket Size

The Carbonview study found that nearly one-third of shoppers would purchase additional items in order to take advantage of a non-monetary reward, which means that retailers not regularly running promotions run the risk of losing revenue. While it’s important to run promotions to change consumer behavior and increase sales, it’s also essential to monitor competitor rewards programs to mitigate potential losses.

 

3.Movie Tickets Are Valuable Promotion Items

While rewards programs clearly demonstrate a sustained and positive affect on shopper behavior, calibrating the right reward is equally important, and since almost everyone watches movies, this type of entertainment reward has shown a significant impact on reward-program performance.

Whether streamed at home or enjoyed in a modern dinner theater, movies are so ubiquitous that viewing is at an all-time high. This is especially true among younger shoppers. According to the Carbonview survey, more than 90 percent of millennials stream movies at least once a month, and more than half go out for a movie at least as often. Two in five shoppers found the idea of movie rewards “highly appealing.” These numbers are significantly higher for millennials, parents, and frequent movie goers and streamers.

Movie rewards make an excellent partner because these frequent movie viewers are an attractive audience for shopper marketing. These shoppers tend to be younger, have a higher income, are well educated, and are more frequent shoppers than the average shopper. They are also more likely than the average shopper to change shopping behavior based on a promotion.

 

4.Online Vouchers Are Effective

The survey also revealed that more than 80 percent of shoppers will likely redeem rewards offered through online voucher codes, and they are more likely to redeem these codes than mail-in redemptions. The likelihood of redeeming such codes doesn’t skew to any particular age group, unlike other distribution methods.

The appeal of rewards can vary widely across key segments. Millennials and parents are much more interested in experience-based promotions while, not surprisingly, heavy movie watchers are more likely to find movie rewards to be highly appealing.

 

Overall, shoppers prefer straightforward programs and are reluctant to participate in complicated promotions. Brands should keep their rewards simple and focused on giving consumers things they want.

 


Jason Davis is SVP and general manager at Fandango Rewards. You can email him at jdavis@fandango.com.


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