What is the Value of a Customer Loyalty Point?
If you want to put a dollar value on a loyalty point, it is from .4 cents to 2 cents, depending on the program. While a monetary way is one way to look at the value, it is not the only one.
As a child, I would often ask my father how much something was worth. His answer was almost always the same. He would say it is worth as much as someone is willing to pay for it. As we talk about the value of a loyalty point, that phrase can be adapted to say a point is worth as much as someone thinks it is worth. People place different values on loyalty points based on how many they have and what they can do with them.
Make Your Customer Loyalty Program Worthwhile
For example, my wife and I joined a loyalty program at a restaurant that we went to once every month or so. After a few visits, we looked up to see what we had earned. We had around 20 free kid’s meals after just a few purchases. While that may be great for some families, we have only one child and he only eats one kid’s meal each time we go. I saw little to no value in the program. If they would have taken away all 20 kids meals and given me one adult meal I would have seen more of a reward by dining with them. We were not what you might call “loyal” customers to the restaurant before, and joining the program did not make us any more loyal.
Some Points Are Worth More Than Others
I spent a few years as a road warrior spending week nights in hotels. When I was not working, my bed at home was always the main place I wanted to be. The hotels gave me upgraded rooms, concierge floors, and the ability to make purchases with my points. I was extremely loyal to my hotel chain of choice. The difference was that they gave me options on how to spend the loyalty points I earned. Now that I travel sporadically, I am still loyal to the same airlines and hotels I was used to be most loyal to. Partially, because it is comfortable and also because they give me options on ways to earn more points and ways to spend those points. Options have made those programs’ loyalty points worth more to me.
To discuss options to make your loyalty points have a higher value please contact me.
What do you think the value of a loyalty point really is? Leave your comment in the field below.
DBG Loyalty is a leading innovator in loyalty and rewards marketing. DBG was founded in 2002 because the industry was looking for a trusted technology leader who could develop and establish consumer loyalty programs. DBG has customer relationships which span from the time of inception.
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