For brands, having a consumer loyalty program is not an option anymore. With the intense competition faced by most, having consumer retention strategies in place is a must but ensuring these programs break even can be a challenge. While it’s important to make consumers feel valued by rewarding their loyalty, you also have to ensure that your consumers aren’t taking advantage of the loyalty program, so it delivers the maximum ROI.

Promotion control strategies can help your brand ensure consumers get rewarded but can’t exploit the program.

Limit the number of times a customer gets rewarded

On Capillary Loyalty+ , you can reward consumers for a special occassion or a favourable action, but limit the number of times such rewards would be applicable, to maintain exclusivity and increase urgency.

This strategy could be used to create rewards such as:

    • The end-customer gets 2X or 3X points on first transaction in their birthday or anniversary month
    • The end-customer gets 2X points on their first transaction through the mobile app
    • The end-customer gets 2X points on their first transaction through a particular payment mode e.g. first UPI transaction etc.

Limit the total points that a customer could earn through a promotion

A festive season sale, or end of season sale often attracts a lot of purchases. A lot of purchases often also means a lot of reward points being given out, but this could mean your bottom lines aren’t what they could have been since you’re spending on both discounts and rewards. Limiting the total points a customer could earn during a promotion season can ensure optimal rewards disbursal and loyalty ROI during this period. For eg:

    • The end-customer can only earn a maximum of 1000 bonus points during Diwali / Ramadan / Chinese New Year promotion irrespective of the number and total amount of purchases made.

Limit the total points issued through a promotion

This limit is extremely important while creating co-branded or partner based promotions. By having a limit to the total points issued through a promotion, you and your promo partner can pre-determine the total liability each of you would have during the promotion. This ensures you aren’t overspending your promotional budget during any promotions. To illustrate, let’s consider this use case: 

    • A brand runs a co-branded promotion with a payment provider where the end-consumer gets 100 additional points when they make a purchase using this particular payment provider. In that case, the payment provider could put a restriction saying total liability from the promotion to be limited to 100,000 currency. This currency can be converted into value in points to be disbursed amongst the first few end-consumers who avail the offer. Once the currency runs out, the offer is no longer valid.

Now take advantage of these promotional limits and more on Capillary. Talk to your Capillary Customer Success Manager today.

Kapil Raj
Kapil Raj has been writing about consumer behaviour, consumer businesses and technology in the fintech and IT space.
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