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Case Study: A Global Telecommunications Company

Case Study: A Global Telecommunications Company

Point-burner program increased redemption.

Situation
The Client, a global telecommunications company, had managed a rewards program for its business customers for over ten years. Its business customers were earning points regularly, but were not redeeming them for rewards. Also, points which customers earned never expired, which made reducing point liability even more critical. The client was experiencing a rise in point liability every quarter.

The Client needed to cement the relationship with its customers and lower overall point liability, increasing program profitability. As an additional challenge, it wanted to increase and reinforce online channel interaction.

Solution
Rather than revisit the rewards mix, or institute expiration dates, Maritz Loyalty Marketing recommended a point-burner program, a fast and efficient way to motivate customers to redeem the points they’ve earned. Partnering with the Client, Maritz designed a strategy where it offered program members exclusive, value-priced merchandise only through its online channel at point levels between redemption thresholds.

The rewards offered were not available in any of the Client’s catalogs and were only available for ten weeks as part of the promotion. The resulting communications plan highlighted the special promotional merchandise in communications the company disseminated to its members, including emails sent to those program members who opted in to receive them and a statement newsletter.

Results
The objectives for implementing the point-burner initiative were met and in some cases exceeded by the program:

34% of customers who redeemed points for a promotional item had never redeemed before.
During the promotion, redemptions increased 42% and after the promotion, remained 32% higher than they were before.
Prior to the point-burner program, point liability was increasing roughly 1% per month. During the promotion, it didn’t increase at all.
Web traffic increased 27% during the promotion period.