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Why You Should Set an Expiration Date for Your Loyalty Program Points
Giving loyalty points for online actions is the key to improved customer retention as well as sales. Not only this approach boosts your customer loyalty but also provides you a competitive edge. Though customers may find reward points without an expiration date appealing, this model isn’t ideal for your business growth.
Here we have explained 4 key reasons why you should set an expiration date for your loyalty points.
To Develop a Sense of Urgency
We have observed that when customers have no restrictions on when they may redeem their loyalty points, they are not interested in making more purchases soon. However, setting an expiration date on the points earned can develop a sense of urgency in their mind. Since no customers want their points to expire or go waste, they end up purchasing before the expiration of their points.
To Foster Brand Loyalty
There are multiple ways to foster your brand loyalty, but offering a reward program is one of the best ways to do so. A program with points that expire doesn’t detract brand loyalty so much as it exclusively rewards customers who express such loyalty. Frequent or repeat customers benefit directly from a reward program that offers points with an expiration date. This approach emphasizes rewarding frequent customers and strengthening brand loyalty among them.
To Create New Marketing Opportunities
Setting expiration points for your loyalty points allows you to create excellent marketing opportunities. For example, you can send email alerts to inform your customers about the upcoming expiration date and advertise your current offerings. This way, you can improve your customer service as well as engagement.
Most businesses fail to be transparent with their customers and inform them about the expiration of their points. So, email marketing can act as a practical reminder to keep your customers updated and not let them feel tricked.
To Keep Your Brand Top-Of-Mind
Expiring reward points can help you stay in the forefront of the customer’s mind. When a person knows a deadline or expiration is approaching, they become more conscious of whatever that deadline signifies. In such a scenario, the upcoming expiration of loyalty points may motivate them to choose you over your competitors for their next purchase. However, if they don’t manage to redeem points before their expiration, your brand will stay on the top of their mind for a future purchase.
Loyalty points with an expiration date can help you increase your repeat sales and build a strong brand identity. Now that we have seen 4 reasons to offer loyalty points with an expiration date, let’s balance the discussion with 4 benefits of offering loyalty points that don’t expire:
- May provide a competitive edge over competitors who have more constricted reward programs.
- Reduces pressure to buy, leading to happier customers.
- Complements businesses that have longer sales cycles.
May serve as a long-term marketing strategy by building a brand identity.