Think Ultimately; Act Proximately
Many marketing managers interested in rewards programs do not realize that while redemption seems like a worthy goal, it is only worthy if it leads to the ultimate goal of increasing customer lifetime value. Adrienne Roestel, senior business analyst, explains how Maritz Loyalty Marketing performs a cross-program analysis on how proximate goals and ultimate goals affect the motivational impact of redemption.
Ultimately, redemption can play a role in driving customer behavior, whether it be through increased spend or longer tenure. But redemption should be used strategically with a focus on meeting the ultimate goal of increased customer lifetime value. Redemption for redemption’s sake could meet one proximate goal while forsaking the ultimate goal of the loyalty building program. For many marketing managers, the subject of loyalty program redemption sparks intense emotion. If redemption isn’t high enough that means customers aren’t engaged. Gain more knowledge about loyalty building programs and loyalty marketing by downloading this whitepaper and achieve balance between your client loyalty goals and redemption.
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