Capillarytechnologies - Expertise Blog


Winning Loyalty Strategies: Immediate Value – Consumers are Demanding More Instant Value from Loyalty Programs

The challenge to implementing these instant solutions for customers lies in being flexible, fast, and able to scale quickly.


Laura Hewitt

4 Min Read

September 01, 2023

In part 4 of our series on engagement marketing’s obstacles and opportunities, we talk about the concept of Immediate Value and that customers today are looking for options beyond under-funded points programs.


Brands in financial services, retail, travel, and other sectors have long employed traditional points and miles-based loyalty programs to recognize and reward valuable customers. These programs also have a successful track record of capturing that all-important zero- and first-party data necessary to deliver dynamic personalization at scale.


But currency-based programs can be expensive to operate, leaving brands with lean reward offerings and expensive liability on their balance sheets. 


In the travel industry, some airlines have increased prices for departing partner awards and added close-in booking surcharges in their loyalty programs. Elite tier status has also become more difficult to obtain.


And, there are several hospitality and entertainment providers who have rebranded their rewards program and devalued their programs. Not to mention some fast-food retailers have devalued their rewards program, increasing the rate at which customers earn rewards points, while also taking away certain free benefits. 


All these changes inevitably lead to consumer backlash and disengagement—outcomes in opposition to the purpose of customer loyalty programs.


These financial headwinds have led to consumers demanding more immediate value from loyalty programs.


Consumers are increasingly unwilling to wait for distant redemption opportunities, particularly when their spending accrues far fewer points and miles than in the past. The continued devaluation of loyalty may drive a push toward alternative reward program models that provide a mix of cash-back rewards, discounts, sweepstakes, and even free offers, all delivered in a dynamic and engaging package. Successful brands will need to meet this challenge head-on.


The obstacles

Alternative reward models can provide the personalized instant gratification that your customers crave. The challenge to implementing these solutions lies in their flexibility, speed, and scale. How can you provide an optimal set of benefits for each customer? How can you stand up the program in a matter of weeks, rather than months? How can you deliver a wide mix of in-kind, partner, and network rewards in a single engaging package? And finally, how can you optimize the commercial value of your program while offering relevant value to your customers?


The opportunity

Today’s customizable and modular reward platforms bring these elements together seamlessly to shoulder the heavy lifting in the design and implementation of an alternative loyalty program. With so many solutions in the marketplace, how can you choose the right partner to deliver on your program objectives? Look for a technology partner who can integrate your successful program components with new platform capabilities, integrate in-kind, partner, and third-party offers into a single reward engine, and provide reward choice through a scalable and agnostic content platform. Not only can you avoid the liability associated with traditional points programs, you can also generate revenue through performance-based rewards. The path to Intelligent Offers is wide open.


To successfully implement an alternative rewards program that delivers immediate value at scale, consider these best practices:



Look for a modular rewards engine that allows you to adopt new capabilities while keeping program components that work.



Delivering personalization at scale requires an optimal mix of in-kind, partner, and network rewards that provide maximum choice.



Encourage engagement by adding sweepstakes, instant wins, and exclusive experiences to your reward mix.


In the next article, we’ll talk about the concept of Fluid Loyalty, and why switching brands has never been easier. 

Aauthor Name

Laura Hewitt

Laura is a global marketer with 30+ years of experience across virtually every channel/component of driving demand, customer loyalty, and engagement. She is currently Vice President, Marketing for Capillary Technologies. Previously she held similar roles at Tenerity, Kobie, and Aimia. Prior to that she worked in advertising for consumer brands after graduating from Southern Methodist University.

Similar Articles

Unlock the Secrets of Personalized User Engagement with WhatsApp Marketing

by Aprajeeta Singh

June 16, 2022 | 5 Min Read

Improve your brand’s ROI & bring greater engagement wi

The Evolution of Mobile Based Loyalty Marketing

by A. Jain

May 30, 2011 | 4 Min Read

Customer Engagement is the lifeline of retail and it has lon

Survey: The Demographics of Nocturnal Shopping

by Capillary Marcom

March 22, 2017 | 4 Min Read

Curious about our customers, we recently conducted a study t

Contact Us

Get the best loyalty &
customer engagement platform out there!
  • Design industry shaping loyalty programs
  • Integrate easily and go live quicker
  • Deliver hyper-personalized consumer experiences
Request A Call
    [wp-wpml_current_language] => en