Choice and optionality are proven to boost loyalty in a world where consumers want to be in control of their experiences. Learn how to give your retail loyalty members more of what they’re looking for.
The challenge:
If your brand is facing challenges with low redemption or engagement rates, this could be a direct result of low-value rewards or a limited rewards catalog not giving members the optionality they crave.
Best Buy turned to Kobie as loyalty experts to help address this challenge head on. While they wanted to maintain branded rewards to keep up in-store spend, there was a clear need to give members more choice and optionality in a strategic way that would help build long-term loyalty.
The solution:
Kobie collaborated closely with Best Buy to implement an innovative online rewards redemption pilot for co-brand cardholders, powered by Kobie’s Rewards Marketplace. This approach challenged traditional retail co-brand redemption practices, operating under the hypothesis that offering greater reward optionality would not cannibalize post-redemption in-store spend, but would instead drive increased loyalty and additional spending.
Key elements to this work included:
- A hypothesis-based Learning Agenda to assess the impact of adding non-branded rewards on customer engagement and brand loyalty.
- An Expanded Rewards Matrix leveraging Kobie’s Rewards Marketplace, to offer more diverse redemption options to members.
- Multiple structured test groups and a control group to accurately measure the effects of program changes, isolating variables to identify what worked best.
- Personalized Offer Messaging with the integration of Emotional Loyalty Scoring (ELS®) to tailor new offer messaging to segments, boosting engagement and altering the redemption mix.
- Financial scorecards for review at 30, 90, 120, and 180-day intervals, enabling ongoing optimization to maximize results.
The outcomes:
By leveraging Kobie’s Rewards Marketplace solution, Best Buy validated the hypothesis that introducing more rewards optionality would lead to significant increases in post-redemption card spend and engagement.
With more than 25 new rewards options, the expanded catalog not only revitalized member engagement but also strengthened loyalty, as seen through increased in reactivation rates, total transactions per cardholder, unique campaign click rates and more.
To learn how to give your members more rewards optionality, reach out to us today!
