A loyalty program’s benefits remain integral to its success. Experiential rewards are one of the most effective benefits, as they drive program satisfaction at higher rates than monetary rewards like price cuts or cash back. However, L2’s Loyalty report finds that only one in four brands offers such rewards. To align with consumer preferences and avoid excessive discounting, brands should take advantage of non-transactional perks such as exclusive events or early product access.
Brands should also think outside the box and reward consumers in a way that advances corporate social responsibility. For example, L’Oréal Paris’s You’re Worth It loyalty program allows members to donate points to one of ten charity organizations. L’Oréal rewards non-transactional engagement, making it easy for its loyalty members to rack up charity dollars. For example, consumers can earn 150 points for following L’Oréal Paris on Facebook, Instagram, and Twitter, which then translates into $30 worth of charitable donations.
Such programs make millennials—an increasingly socially conscious generation—feel impactful. They can also help brands determine the causes that members prioritize and include them in future charitable campaigns, encouraging future loyalty program engagement.