What makes a re­wards pro­gramme suc­cess­ful?

The Star Early Edition - - FOCUS ON BRICS -

HILE many re­wards pro­grammes in South Africa are founded in re­tail with the pur­pose of en­cour­ag­ing re­peat business, fi­nan­cial in­sti­tu­tions are now tak­ing their share of the mar­ket as con­sumers wise up to how pro­grammes work, how to gain the best ad­van­tage from them, and im­por­tantly, who they can trust with the in­for­ma­tion they are shar­ing by en­gag­ing with them. So says Jaco Oosthuizen, CEO of Mul­ti­ply, the well­ness and re­wards pro­gramme of­fered by Mo­men­tum.

“It’s be­com­ing more im­por­tant to re­ward pro­gramme mem­bers for more than just mak­ing pur­chases. By pro­vid­ing in­cen­tives and re­wards for on-go­ing en­gage­ment out­side of spe­cific cam­paigns or re­lated di­rectly to pur­chases, you are con­tribut­ing to loy­alty built through a re­la­tion­ship with a cus­tomer who trusts you to pro­vide valu­able and rel­e­vant in­for­ma­tion, about top­ics that are rel­e­vant to their life, and to your business.”

Oosthuizen cites Mo­men­tum’s Fi­nan­cial Well­ness As­sess­ment so­lu­tion as an ex­am­ple of on­line en­gage­ment that en­cour­ages and re­wards re­peat vis­its to its web­site, with­out ex­pect­ing mem­bers to make any pur­chases. No­tably, the so­lu­tion is avail­able to all South Africans – even those who do not hold a Mo­men­tum prod­uct.

Mul­ti­ply mem­bers earn points on

Wthe pro­gramme for reg­is­ter­ing on the Mo­men­tum web­site and com­plet­ing the survey, which gen­er­ates an ac­tion plan for them to­wards achiev­ing fi­nan­cial well­ness. Th­ese points con­trib­ute to their sta­tus on the pro­gramme which in turn de­ter­mines the dis­count they can en­joy from the pro­gramme’s part­ners which in­clude Vir­gin Ac­tive, Planet Fit­ness, Dis-Chem Phar­ma­cies and Mango among oth­ers.

“What’s im­por­tant about the Fi­nan­cial Well­ness As­sess­ment so­lu­tion is that en­gag­ing with it re­sults in a re­ward for tak­ing ac­tion that adds value to the user’s life, and not just for mak­ing a pur­chase. If con­sumers use the re­port gen­er­ated by the on­line so­lu­tion to take re­me­dial ac­tion by en­gag­ing with a Mo­men­tum fi­nan­cial ad­viser they will earn even more points to­ward their sta­tus on the pro­gramme.”

Mem­bers who par­tic­i­pate in the on­line so­lu­tion also ben­e­fit from a greater sense of well­ness, achieved through feel­ing more in con­trol of their fi­nances.

“Fi­nan­cial stress of­ten im­pacts neg­a­tively on health and well­be­ing, and giv­ing Mul­ti­ply mem­bers the power to take con­trol of their fi­nan­cial well­ness is just another way we pro­vide mean­ing­ful re­wards.”

Another as­pect which con­trib­utes to the suc­cess of re­wards pro­grammes in gen­eral is to un­der­stand that one-off re­wards are likely to re­sult in one-off cus­tomers says Oosthuizen.

“Cus­tomers tend to pre­fer build­ing re­la­tion­ships, and they re­spond well to pat­terns of pos­i­tive be­hav­iour. There­fore it’s es­sen­tial to en­gage with pro­gramme mem­bers fre­quently, adding reg­u­lar and mean­ing­ful value, rather than just of­fer­ing oc­ca­sional ben­e­fits.”

This could in­clude en­cour­ag­ing the reg­u­lar com­ple­tion of on­line per­sonal health, fit­ness or fi­nan­cial well­ness reviews, as well as reg­u­lar spe­cial of­fers or dis­counts with re­tail part­ners.

The more struc­ture a pro­gramme has, the more mem­bers will trust it, and in­cor­po­rate it into their daily lives. Re­wards pro­grammes also need to be ap­proach­able, and of­fer achiev­able ben­e­fits says Oosthuizen.

“If you make it too dif­fi­cult to earn re­wards or nav­i­gat­ing through dif­fer­ent re­ward lev­els seems too com­pli­cated, con­sumers may be hes­i­tant to en­gage with your pro­gramme – they may be more likely to turn to pro­grammes that of­fer ac­ces­si­ble, mean­ing­ful and tan­gi­ble re­wards.

“If you have a tiered sys­tem, make it sim­ple. Make it easy to earn points, quickly, and make the re­wards rel­e­vant and mean­ing­ful. If a pro­gramme mem­ber can see im­me­di­ate ben­e­fit, they are likely to en­gage with the pro­gramme again and again.”

Ul­ti­mately, Oosthuizen says the thread that holds re­wards pro­grammes to­gether is putting the cus­tomer at the cen­tre of its mar­ket­ing, prod­uct and company goals.

Jaco Oosthuizen, CEO of Mul­ti­ply.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.