‘How can rewards be used to drive effective loyalty programs?’. Answering this question, we once again turn to member psychology in relation to rewarded behaviour.

During the past decade, as loyalty programs have come to terms with analysing Big Member Data, it has been consistently observed that members increase their spending after reward redemption for a short period of time. This is part of the Motivational Cycle. So how can you use this cycle to your advantage?

Cash vs Experiences - Building meaningful and longer-term connections with customers through loyalty programs is an essential strategy for brands to survive in crowded marketplaces with little differentiation and low switching barriers. Rewards offer opportunities for unique relational positioning.

Just last month, in a program audit for one of our (Fortune 100) clients, we found that 66% of members’ decision to actively engage with the B2B loyalty program could be attributed to ‘rewards’. This is part one in our trilogy of B2B loyalty program rewards and ensuring you have the right reward for the desired behaviour or action.

Every company needs them; re-seller top dogs. They drive success, they show others how it’s done, they collect the rewards, they stash the cash, they may come to expect the white glove treatment. At the same time, it is becoming clear that incentivizing these star business partners also has a dark side. And it is good for companies that run performance incentive programs for their channel partners to be aware of this.

Incentive travel has been seen as the ultimate incentive reward since the 1970's and 1980's when it really started to gain traction. The reason for its success is that it taps into our primal human nature, the adventure of travelling.

Humans have an adventure instinct to visit new places and to be able to do that as a reward is an incredibly enticing driver to achieve the required business outcome.