In 1912, world-famous popcorn company Cracker Jack rewarded their loyal customers with a prize inside each package.
Today, the goals of loyalty rewards have not changed too much. Companies are still using incentives to identify top customers, and target their marketing towards them while keeping them engaged. But as the number of loyalty programs grows, customers are overwhelmed—which is not what rewards are meant to do.
Canada-based startup, Points created the loyalty wallet, a platform that provides members the opportunity to get more value from their multiple loyalty programs.
“We started with a small number of partners and services and have grown over the years to provide services to over 45 of the world’s largest loyalty programs, while connecting with millions of loyalty program members around the world,” wrote Christopher Barnard, President of Points.
Loyalty programs tend to be complicated. Specific product redemptions, daily deals, digital wallets, retailers, international payment and airlines all add up to become a kafuffle. Customers are losing interest in participating in loyalty programs, even though memberships between 2010 and 2012 grew by over 25%. During the same period participation dropped by 4.3%.
Although fragmented, difficult to access and with limited technology, the Loyalty market is a big one. With $15-$20 billion annual North American revenue and a $60-$70 billion annual global revenue, nobody can deny that it is a market to keep an eye on.
“Since the adoption of smartphones and other mobile devices, customers now crave more and more information available at their fingertips and on-the-go,” wrote Barnard. “They also want more personalized offers that are relevant to themselves and their preferences and more flexibility and ease in the ways that they can redeem them.”
Loyalty program members like feeling a sense of flexibility when it comes to using their points, miles and rewards. By allowing members the option to track, trade, redeem and exchange their rewards, Points will increase customer engagement.
“Points creates services that help loyalty program members wade through this very crowded loyalty space to get the most from their programs,” wrote Barnard. “We do this by providing services that enable consumers to Buy, Gift and Transfer points and miles among their favourite loyalty programs so they can reach award goals faster, or the option to exchange points and miles from one program into another on Points.com.”
Not only does Points benefit the members, it also increases the loyalty program’s value. American Airlines, Amazon.com and Best Buy are just some of the brands that Points have partnered with to enhance consumer loyalty offerings and streamline back-end operation.
“By utilizing our technology, the world’s leading brands can create more valuable loyalty program offerings,” wrote Barnard, “which is often much less expensive than if they were to take an in-house approach. Points’ solutions enable the management and monetization of loyalty currencies, ranging from frequent flyer miles and hotel points to retailer and credit card rewards.”
Points.com, online loyalty wallet, is a platform where consumers can organize and manage their numerous loyalty programs all in one place. Resembling an online marketplace, Points.com enables consumers to redeem, trade, track, buy or gift points and other rewards currencies with their different programs.
“Our mission is simple: it’s to help make global loyalty programs more valuable and engaging. We do this through new and innovative ways for members, businesses and loyalty programs to connect to each other.”