Post Redemption Churn & Tips to Reduce It for Better Loyalty Results
- Posted on November 24, 2022 by Robert
- Reading time about 5 minutes
We cannot deny the importance of customer loyalty for businesses that are struggling to make a place in the competitive era. For this, businesses put efforts to make customers aware of rewards by using a wide range of tempting rewards. However, they often forget about the redemption experience that they are offering to them, which is often considered more important than the actual rewards, eventually leading to the scenario of post-redemption churn.
Let’s find out more in this blog the right B2B customer loyalty programs can help in reducing post-redemption churn and making customers stay with your brand for a long time.
Significance of Smooth Reward Redemption Process
From delivering personalized experiences to tempting rewards, business owners are doing whatever possible to encourage their loyal customers to stick with their brand for the long run. No matter how perfect your rewards are, a complicated and complex redemption process can disappoint your customers and may increase the chance of post-redemption churn.
Making use of the best business loyalty program can help brands not just keep the focus on customer engagement but also to deliver a smooth loyalty reward redemption experience. You must have heard about loyalty programs that boost Customer Lifetime Value (CLV) and even research says loyal customers that have built an emotional bond with the brand have witnessed 306% higher CLV. But an unpleasant redemption experience by a loyalty program can lead to lesser engagement with higher churn, wasting all the efforts, time, and money spent to nurture customers.
This means, a loyalty program if not planned perfectly can even lead to an end of the relationship between the brand & the customers. So, what can you do to make your customers stay with you after they redeem their rewards or minimize the post-redemption churn rate?
Tips to Help Brands Reduce Post-Redemption Churn Rate
In this section, we will check some of the scenarios where the reward redemption process is not satisfactory and how brands must act-
Scenario 1- Complex & Complicated Redemption Process
If your customers feel that ‘I will never do this again’ after their first redemption experience, this means that customers are no longer excited to use your rewards program for the second time due to a super complicated redemption process, that causes headaches rather than joy.
Your rewards program may have several tiers, reward bundles, inventory configurations, etc. involving a lot of complexities. No matter how complex your backend is, ensure that your program frontend is transparent and easy to understand, even if you are a multi-brand company or running a group loyalty program.
Make efforts to define all rules and instructions transparently so that customers know exactly what rewards are available and how easy it is for them to redeem them. Using a digital wallet is a great way to remove complexity from the redemption process.
Scenario 2- The redemption Process isn’t Omni channel
Ensure that your loyalty program supports an omnichannel strategy that works across online as well as physical channels. This enables loyalty program members to redeem their reward points without any issue, which is beneficial to reduce the post-redemption churn.
Successful businesses are the ones that are making use of omnichannel capabilities to meet their customers’ needs wherever they are. Adding an omnichannel loyalty program not only increases touchpoints but also creates value for the most valued customers. Additionally, it enables your retail & eCommerce team to work together effectively by supporting business core competencies and encouraging users to redeem more points.
Scenario 3- Slow Response to the Actions
Customers today have a very hectic life schedule and they want everything instantly even your rewards. Make sure that your brand offers online coupons/vouchers in no time. For physical rewards, get them delivered to your customers well-packed without any delay. You can do so by making the shipping process quick so that you don’t spoil the fun & delight of receiving free rewards.
With more options than ever, real-time responses & keeping promises are becoming a need to build a positive impact on customers’ minds, making them feel that your brand is quite reliable and transparent.
Making your customers receive rewards instantly helps in redeeming them faster, which leads to higher customer satisfaction and happy customers are more likely to stick to your brands for further engaging rewards.
Scenario 4- Unpleasant Experience while Receiving Rewards
Brands must not keep their focus solely on the rewards, they must take care of the experience that customers get while receiving your rewards. One unpleasant experience like opening a dented package in the name of rewards is enough to make them lose interest in your brand. This experience is not delightful for your customers and they may feel that the business doesn’t care for their valued customers.
Offer a delightful experience to ensure that your digital or physical rewards have a positive emotional impact on customers, encouraging them to look forward to their next redemption experience. Consider every redemption journey as an opportunity to build a stronger bond with customers that they look forward to the next interaction with your brand.
After going through the blog, we are now aware that post-redemption churn is a serious matter which can impact the relationship between the brand and the customers negatively. A high post-redemption churn rate is an alarming sign for businesses, which means your loyalty campaigns are not working effectively or keeping your program members engaged.
Brands must focus on simplifying the redemption process with a clearer picture of their loyalty status, creating user-specific UX to grab customers’ attention, delivering rewards for members’ actions, and paying attention to post redemption experience. If you still have queries regarding the ways to reduce post-redemption churn, book a demo with Novus, our all-in-one rewards program platform to build customized loyalty solutions that can boost engagement and reduce churn rate.