Digital rewards can help engage occasional clients

The choice of prizes in a promotional operation is one of the elements which can affect its redemption rate; selecting the most appealing prizes for your own target can therefore be a real challenge for marketers.

Digital systems may offer support to a brand industry and to retailers whose physical demand level is saturated, by making it possible to de-materialize prizes and make them available to users: according to a survey by Advice Lab, 77% of respondents would take part more frequently in a promotional activity if it were possible to choose the prizes and if their delivery times were shorter.

In this regard, the most highly developed digital redemption platforms for prizes allow companies to make up their own wallet of partners, where consumers can use the collected points to create a “tailor-made prize”. The promoting company is thus able to reduce to zero all expenses on stock, logistics; these are actually paid by the selected partner, while the consumer has the possibility of choosing a prize, immediately redeeming the collected points; this provides useful leverage to increase the promoting company’s brand reputation.

Will digital rewards be able to totally replace physical prizes? Definitely not 100% of them, due to the emotional and value-related appeal the latter still have in respect of specific targets; however, the former still express their full potential with regard to caring and instant gratification in respect of users. Adding some kind of in-pack gift, such as an mp3, e-book, or digital discount voucher, is not particularly expensive for the company, but it is highly appreciated by the consumer. It can thus constitute the first step towards engaging occasional clients by rewarding their purchase, then move on to an increasingly value-based loyalty relationship. Digital rewards, for instance, make it possible to pamper those clients who make few purchases which would not be enough to collect the required amount of points in a traditional loyalty program. For the brand industry they are actually a way of showing they care, and also of rewarding users for actions disconnected from the purchase, but which can boost the brand’s digital tools (e-commerce, social, app), fostering the creation of a digital community on which it is possible to work from a sell-out boosting perspective.
As always in digital marketing, what is important is not innovation but how it is used.

Fulvio Furbatto for PromotionMagazine