Key Insights #3: High Liquidity vs. Low Liquidity Industries
In our previous Rewards Liquidity post, we looked at the regional differences and Rewards Liquidity Score (RLS) ranking of loyalty programs our the world. Today we are taking a look at seven different high liquidity and low liquidity industries where loyalty programs shine and fall short. With this analysis we can see what key factors separate these industries, so that you are able to adapt your loyalty program based on these successes and outmatch your competition.
If you are new to this series, you will find a comprehensive overview of what our Rewards Liquidity Score is in our post: “Key Insights #1: Most Liquid vs. Least Liquid Loyalty Programs”.
In case you want to go straight into the Global Rewards Liquidity Report 2023, you can download it here for free:
Industry Ranking and Key Insights
What makes Banking, Airlines and Hospitality the top three industries for loyalty programs, is the fact that they provide the highest levels of earning flexibility (with a Rewards Earning Freedom score of 85-90), while offering their members the most freedom to spend their rewards in a variety of ways (with a Rewards Exchange Freedom score of 80-85).
On the other hand, industries such as Retail and Restaurant sit at the bottom of the ranking exactly because loyalty programs in these industries offer the lowest earning and exchange freedom. With both their Rewards Earning Freedom score and Rewards Exchange Freedom score at 20-35, it is clear to see why they fall short compared to the top three.
#1 Banking - RLS: 41.83
Most Liquid Program: AMEX Member Rewards
Least Liquid Program: Warba’s Pocket
#2 Airlines - RLS: 41.38
Most Liquid Program: Aeroplan
Least Liquid Program: Voyager
#3 Hospitality - RLS: 34.74
Most Liquid Program: IHG Rewards
Least Liquid Program: Atlantis Circle
#4 Entertainment - RLS: 27.37
Most Liquid Program: Rakuten Super Points
Least Liquid Program: SK Club Rewards
#5 Consumer Goods - RLS: 24.92
Most Liquid Program: Esso Smiles
Least Liquid Program: My Walgreens
#6 Retail - RLS: 22.66
Most Liquid Program: Sephora Beauty Insider
Least Liquid Program: RealRewards
#7 Restaurant - RLS: 21.27
Most Liquid Program: Starbucks Rewards
Least Liquid Program: Scarpetta Rewards
Learning from the Best
As shown in the key insights above, the two main categories that help the most liquid loyalty program industries rise to the top are Rewards Earning Freedom and Rewards Exchange Freedom. The best loyalty programs provide members with flexible and effortless ways to earn rewards, along with a variety of spending options through exchanges.
To increase engagement and affinity for your brand among loyalty program members, it is important to increase the earning flexibility of your rewards and offer higher spending freedom with interesting exchange options.
Our FREE Global Rewards Liquidity Report 2023 gives you insightful information on how you can improve your loyalty program and take it to the next level. You can download it here for free!
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