The £6bn Liability Of Loyalty Points

Loyalty benefit programs have been around since 1896 when an American company called Sperry & Hutchinson started selling Green Stamps to customers to save up for bikes, tools and wristwatches.

Today, loyalty programs are part of people’s everyday life. Over 30 million UK adults are engaged in at least three loyalty schemes and 46% of consumers state they are more likely to choose a brand based on their loyalty program and the amount of points they can earn.

Unclaimed Loyalty Points

In short, effectiveness of loyalty schemes cannot be denied. However, not all participants are actively claiming their points and cashing in on rewards.

As a nation, around £5.7 billion worth of loyalty points a year sit unclaimed in consumer’s pockets. This means consumers are not actively making use of marketing advantages. More importantly, unclaimed points provide a huge liability for banks, travel agencies and more.

The Communication Between Brand and Consumers

Some of the reason behind this can be explained by nature of the consumer; not all loyalty point holders are actively looking to spend their points and are instead looking to hoard as many as possible to save up for a life-changing holiday.

However, more often than not, the extraordinary amount of unclaimed points can be explained by a failure in communication between a brand and its consumers.

Multiple studies have shown that more than half of the UK’s consumers are unaware of what their point balance is, and/or which products can be redeemed with the points saved.

Engaging Video Message

The solution is simple. Brands need to communicate clearly and regularly to their customers, in order to remind them how many points are in their account and what their rewards are.

But how can you send an engaging message stating an individual’s personal points, specify tailored opportunities to trigger the consumer’s interest and in turn, encourage them to redeem points?

Personalised Loyalty Programme Video

Well, that is where VideoSmart comes in. By creating a personalised video for each and every member, brands can communicate the benefits each individual has, using the most engaging form of media.

If Lucy can fly to Barcelona, the video will tell her so. If Mark can only travel to Scotland…well, maybe the video message will focus on his 2% cashback on fuel.

Each video will be created solely for the viewing of the targeted customer, allowing them to feel not only engaged, but fully informed on the value of their points.

The Benefit of Video

The benefit of these videos is not only a reduction in company liabilities, but according to the Bond Brand Loyalty report (2017), redeemers of points are twice more likely to be satisfied with a brand than non-redeemers.

To see what a personalised loyalty programme video could look like, simply click play below.

To create your own personalised loyalty video, contact VideoSmart today at hello@videosmart.com