A earn and burn strategy as part of your loyalty program allows your customers to earn points based on purchases or when they fulfill some kind of actions. It can be a simple and effective way to build strong bonds of loyalty between your brand and your most frequent customers.
Such a strategy can also provide a win-win scenario since it gets more affordable for your customers to stay loyal to your brand. This article is about how it works in Engage and some key factors to consider before launching an earn and burn strategy.
With the help of Engage, your customers can either receive a voucher or a special offer when reaching a certain number of points—you decide. Earned points can also be used to calculate member levels like this to make a person eligible for even more kinds of unique offers.
The way you choose to reward your customers when they reach a certain number of points is only limited by your imagination, but here are some common examples:
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Free shipping
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Access to special content or events
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Access to Double Points Shopping Days
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Members exclusive offers and discounts
Points can be assigned through several different routes in Engage:
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Based on purchase amounts calculated on receipts
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Through an event such as: “Purchase product X and get 100 points extra” or “Write a review and get 100 points”
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Manually, for instance by your customer support agent as a compensation
Your customers' current point status and history is stated/displayed on their contact cards and may be used for creating segments for campaigns.
Before you can launch a program, there are some key questions to think through:
- How many points should a customer get for every 1 of each currency? For example, 1 point for each Euro
- When should earned points expire? (For example: never, rolling expiry date, a whole calendar year, when a contact has been inactive for a given time (not yet generally available))
- Are there any products or transactions you would like to exclude from earning points?
- Should I use a fixed percentage? This is when the decided minimum of points is reached, a reward voucher is calculated in Engage based on % of earned points. For example, if you set the calculation rate to 5 %, and a customer has earned 1,000 reward points, they receive a voucher for 50 Euro (assuming Euro is your default currency).
- Should I use a table-based model? Here, a fixed value will be applied to a reward voucher when a set number of points has been earned.
You can read more about points and rewards here.
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