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Reward Choice Retains Members.

Learn how Kobie’s data scientists used data analysis to prove that reward choice keeps members engaged in the program more than a single reward offering.


A national Client with a membership-based program wanted to reduce churn and explore cost-effective redemption options.


So Kobie set out to test a hypothesis that members who redeem more types of rewards or have a “mixed” redemption are engaged longer than those who redeem in a single category.


To achieve this, Kobie segmented the Clients’ members based on what they historically redeemed for and looked at retention rates among the different segments over a 2-year period.


The data confirmed the hypothesis. The Clients’ “mixed” redeemers had 1-5% better retention in Year 1 and 1-9% better retention but lower reactivation in Year 2.​


To dig even deeper and test the hypothesis more broadly, Kobie evaluated retention across FI clients over a 3-year period based on their redemption mix (cashback, travel, e-certs, etc.) to understand reward redemptions and the connection to member engagement and loyalty.

Kobie’s analysis found that FI members who engage in multiple reward categories stay with the program for longer:

  • 68% of cardmembers who mixed redemption options retained 3+ years in their program.
  • This is significantly higher than any single redemption category, including cashback, of which 56% attrited within 3 years.


Contact us to learn more!

Kobie Marketing

Kobie Marketing