I don’t know about you, but I’ve never had the patience for rewards-points based loyalty programs. It takes forever to save up for anything worthwhile, and in the meantime, I get bored and start throwing the rewards statements unopened into the “recycle” pile with my junk mail.
I’m not alone. As Dukky CMO Scott Couvillion told Incentive Magazine in a recent article, “Points are a liability for companies. They’re credit toward something the company has to one day fulfill. But the only contact they’re having with employees or customers is through statements saying, ‘Here’s your reward balance and here’s some stuff you can get with the rewards points.’ The reaction was poor, so they tried to migrate to digital, since it’s cheaper to maintain. Problem is, it’s also easier to ignore, so companies were getting even fewer responses.”
Dukky is breathing new life into old-school rewards points programs by using personalized gift cards to make them more appealing to consumers. Instead of sending out a catalog, Dukky mails out gift cards that respondents can use to snag reduced-points redemption offers from the program. The cards are activated on a personalized URL (PURL), and customers can share the offers with friends and family.
While the respondents are at their PURL activating their gift card, they can also complete quick surveys to give the company helpful information about how customers perceive their products and promotions. A little bribery, in the form of extra points for completing the survey, can be used to sweeten the deal.
Of course, Dukky also offers our first-class analytics dashboard so that the company can monitor responses in real-time.
Why does Dukky’s platform work better than simply mailing or emailing out statements? Personalized gift cards get people engaged, while the ability to share the offers socially offers a viral component that vastly increases the reach of the program.
For example, referring to Dukky’s campaign for Cafe Express, Couvillion explained to Incentive that “People were sharing on average with three other people. The most people will forward to is about nine, but on average three. That’s because it’s coming from a friend or relative.”
“It’s still direct marketing, but it feels personal. Apply that to loyalty programs. Consumers know what they want. Put content into the hands of your advocates and let them do the marketing. It’s a very different way of thinking about direct marketing.”
This entry was posted on Monday, November 2nd, 2009 at 11:55 am and is filed under Innovation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
