Loyalty Highlights: Earn and Redemption Mechanics – Global Loyalty Trends Report 2022

Enabling Points Conversion

The results indicated that point-based loyalty programs were a norm across global brands in the loyalty industry with 71% of programs adopting this system.

Interestingly enough though, only 5% of these programs actually enabled their members to convert their loyalty points into other brand loyalty points or currencies. This could be one of the reasons explaining how some brands with a point-based system score a higher member engagement rate over other brands that adopt one.

Tier Systems and Redemption Options

With many brands trying to boost their member engagement and spending, it is only logical that different strategies are employed to achieve these goals. One of these is the use of tier systems. Not only do they incentivize higher member earn rates, but members also engage more with your program as a means to reach the next tier and unlock extended value.

Responses for S3Q4: “Does your program integrate tier systems?”

Top 11 Redemption Options

Key Takeaways (TL:DR)

• 71% of loyalty programs use a point-based system but only 5% of these programs enable their members to convert these points into other brand loyalty points or currencies

• With many brands trying to boost their member engagement and spending, it is only logical that different strategies are employed to achieve these goals. One of these is the use of tier systems.

• Loyalty programs with high active member engagement, all offer more than 5 redemption options to their members. Indicating that your members want flexibility and options, not just the same old merchandise and some coupons.

Keep an eye out on our socials to find out when our next loyalty report mini-series post is released and discover more exciting insights about loyalty from the top brands around the world.

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