Len Covello, CTO Engage People, explains how loyalty program data can solve this problem for valued customers
Len is the Chief Technology Officer (CTO) at Engage People, leading the long-term technology vision of the company. He is an innovator in the technology space and a thought leader in loyalty. Lenis an active member of Forbes Technology Council and a cornerstone of the Engage People executive team.
If we took an informal poll to gauge whether consumers have too many or too few purchase options in the market today, most of us would conclude that the consumer is overwhelmed with choice. As Len states in this article, shoppers today are spoiled for choice as a global supply chain churns around the clock to deliver almost anything anyone could imagine right to their doorstep, often with the touch of a button. Consumers searching for a particular product might begin with a quick Google search or browse through their Instagram or SnapChat feed for ideas. The options are many and at times can be intimidating or, at the least, exhausting.
But what seems intuitive is not always factual. A recent study from the Journal of International Marketing showed that consumers more frequently experience choice deprivation than choice overload. The report surveyed the choice perceptions of 7,400 consumers in six different countries, reviewing everything from products, like soft drinks and cars, to services, like healthcare and education. More than half of consumers reported a lack of options in their daily lives, and only 14% of respondents said that they had too many options.
In this article written by Len for the Forbes Technology Council, he makes the case for how Loyalty program data can be used to give relief in decision making to valued customers. He cites findings from the "2022 Rewards Redemption Survey" report created by The Wise Marketer in conjunction with Engage. The report found that consumers value loyalty programs with a variety of options and flexibility of choice, while research from Deloitte ranks “choice of redemption options” as a high-value feature for customers participating in loyalty programs.
Len provides examples of how to use loyalty program data to provide more choice to customers and concludes that offering a wide range of redemption options through a combination of traditional rewards, discounts, and even modern items like NFTs is essential to driving engagement and supporting a successful loyalty strategy.