How to Curate a Kick-Ass Rewards Catalog.

Importance.

gWhy do so many programs fail at curating a catalog that their customers will actually want to redeem from?

The rewards found in catalogs are what customers save their points for. If it’s not full of sought-after items, they won’t be be interested in participating or listening to what the program has to say.

The catalog is the most important (and overlooked) weapon!

Potential.

A well conceived catalog can boost engagement rates and the perceived value of a program.

Why don’t customers redeem if they have enough points? Lack of variety - rewards are not perceived to be exciting or valuable enough.

Reward intervals – the gap between points is too wide. It takes too long to reach the next level with better rewards, and the rewards at the lower levels are not worth redeeming points for. Customers lose interest in the program.

No aspirational rewards – when big, exciting rewards are offered, it allows customers to dream and have a goal to reach for. Aspirational rewards pulls engagement upward.

The Current Approach.The biggest mistake.

The Right Approach.Q

1. Listen.

The answers are all there. Just listen.

Get to know your customer » Demographics - age, gender,

location » Psychographics - likes, dislikes,

attitudes, aspirations » Behaviors - media consumption,

purchase behavior » Social media - comments, attitudes,

reactions to your brand or product, brands they like and don’t like

2. Learn.

» Which items were redeemed the most?

» Which ones were ignored?

» What were the point values of the top performing rewards?

This will help you determine which rewards should make up the new catalog and what the point values should be.

Study the redemption patterns of your current customers

3. Analyze.

» How many of them fall into the highest and lowest purchase levels?

» What is the average purchase level? » How many purchase levels are there? » How frequently do customers purchase?

This will give you a sense of how many points your customers are earning and what the appropriate reward levels should be. You’ll also be able to determine the reward levels with the most customers and where you’ll need more reward variety.

Understand how your customer spend is distributed

4. Curate.

» Cut the fat. Get rid of rewards no one wants.

» Test new, exciting rewards based on customer insights.

» Track key metrics to assess new catalog performance.

» Test and learn. Get better each time.

Pick exciting rewards based on your newly acquired insights

Your customer is always changing. Your catalog should too.

Takeaways.

» Listen closely to your customer » Learn from current redemption data » Analyze customer purchase behavior » Curate a catalog using new customer

insights » Update your catalog to reflect changing

customer tastes

Curating an awesome catalog is hard. If it were easy everyone would be doing it.

Check out the RewardOps Blog for more tips and insights to elevate your rewards program.

RewardOps provides an API-based solution to boring rewards for reward and recognition programs.