By Deon Olivier, Founder of Woodstock Loyalty
It’s a known fact that the rate at which members earn Loyalty points (also known as “earn velocity”) is a significant determinant of success, but is earn velocity THE MOST important attribute?
Here are 3 compelling reasons for advocating earn velocity as a key determinant of success:
🔶 Earn velocity drives member engagement and satisfaction levels: when members see tangible rewards accumulate quickly, it creates a sense of progress and immediate gratification, fostering a stronger emotional connection to the Loyalty programme.
🔶 Earn veIocity is a driver of extended tenure: if members feel they can earn rewards at a faster rate compared to competing programmes, it encourages repeat business and discourages switching to competitors.
🔶 Earn velocity enhances the perceived value of the proposition: by accessing desired rewards sooner, members experience a higher return on their effort.
Dig a little deeper and you'll find that these 5 equally important attributes rank alongside earn velocity as key determinants of success:
✅ Reward quality and relevance: members seek rewards that align with their preferences and provide tangible value. By offering high-quality rewards that resonate with members’ desires, Loyalty programmes can drive engagement, satisfaction, and long-term loyalty.
✅ Rewards availability, redemption flexibility and ease: Loyalty programmes should prioritise offering a variety of redemption options, seamless redemption processes, and good availability of rewards (that’s a price of entry surely?). A hassle-free redemption experience enhances the overall program value and encourages ongoing participation.
✅ Personalisation: by leveraging data and insights, programmes can tailor rewards, promotions, and communications to individual members’ preferences and behaviours. Personalisation enhances member engagement, fosters a sense of exclusivity, and deepens the emotional connection with the programme (and, by extension, the brand).
✅ Enhanced customer service: prompt customer support, dedicated assistance for Loyalty programme members, and proactive resolution of issues contribute to a positive programme experience and reinforce the perception of value.
✅ Exclusive benefits: offering unique and exclusive experiences, such as early-bird access to events and promotions and behind-the-scenes insights add an element of excitement and differentiation to a Loyalty programme. These exclusive experiences create a sense of prestige and make members feel valued and appreciated, ultimately strengthening their loyalty to the brand.
To sum up:
Points earn velocity is a powerhouse for driving value, but it’s not the only one: by prioritising other essential attributes, Loyalty programmes will effectively engage members, drive loyalty, and differentiate themselves in today’s competitive market.
Please get in touch with Deon if you’d like to know more and connect