New research shows that $48 billion are dispersed every year via consumer loyalty programs. Of that, 1/3, roughly $16 billion are never cashed in. Wow!
This statistic is double edged. On the one hand, you aren’t giving discounts and you may think “that’s good news, that’s money we keep.” On the other hand, that indicates a real problem. Your customer didn’t spend money you GAVE them. You say, “It’s free, here, spend it. Go ahead. Enjoy.”
“No thanks, I can’t be bothered,” says the customer. Oh-oh.
Look at your redemption rate, perhaps it will tell you how engaged your customers are with you. If you see a big pile of unused rewards, it may be time to re-engage with your customer. Before it’s too late.
Read the excellent article by Tanya Irwin for Marketing Daily here:
