Educating loyalty members to drive value: a success story
Drive program value through exclusive redemption offers.
THE CHALLENGE:
Integration of two loyalty programs provides opportunity to communicate value of new, combined program
In 2022, one of our long-time Bakkt® Loyalty Solutions clients merged with another loyalty program to provide their members with more ways to earn and redeem points. With the integration, the client was focused on re-engaging existing members, as well as acquiring and engaging new members. The client was excited about the opportunity and looked to existing partners, like Bakkt® and our suppliers, for support to act on these objectives and to demonstrate value to program members.
Are you wondering how you can educate your loyalty members about new or existing program benefits? Or are you asking how you can emphasize the value of your loyalty program?
THE SOLUTION:
At Bakkt, we partner with you to create strategies that wow your customers and impress your colleagues
In the past, Bakkt has partnered with the client to run various promotions through Bakkt® Merchandise Rewards, giving their members more value for their points by redeeming products at a discount. The promotions have been successful in driving member redemptions and engagement, so Bakkt and the client wanted to leverage Bakkt® Loyalty Solutions again to communicate program value and educate members on redemption options. This time, they decided to run the program’s first-ever Apple® Rewards promotion.
Bakkt worked with the client and our partners from Apple to create an Apple Watch offer. Since Apple does not typically run direct-to-consumer promotions, this exclusive discount was a way for the client to reinforce program value. The promotion ran for two weeks and allowed program members the opportunity to redeem their points or purchase an Apple Watch at a discounted price.
The client saw strong results in driving incremental web traffic and total orders during the promotion, compared to previous, non-promotional weeks.
Bakkt and the client worked together to design an integrated campaign experience which leveraged owned marketing channels to support the promotion. The client coordinated with their internal marketing team to design and deploy a dedicated marketing email to their loyalty program members to inform them of the promotion and encourage them to shop the sale through the loyalty redemption portal. In addition, the client created web and app banners, and social posts to showcase the offer. To enable a seamless customer experience, Bakkt incorporated a promotional banner on the Apple® Rewards homepage featuring the Apple Watch discount.
THE RESULTS:
Exceeding promotional goals and client expectations
The client saw strong results in driving incremental web traffic and total orders during the promotion, compared to previous, non-promotional weeks.
There was a +24% lift in web visitors, +31% increase in total orders, and +123% lift in total sales.
There was also an increase in split-pay orders during the promotional period. The email communication was sent to all loyalty members, including those with little to no points. Although Apple products can be high-ticket items, the price point did not prevent members from making a purchase, but rather encouraged them to complete their purchase using the split-pay option, which allows members to check out using a combination of points and cash.
During the promotion, there was an +85% lift in split-pay orders, and of the total orders placed, 47% were split-pay, compared to 34% in previous non-promotional weeks.
These results suggest that exclusive, enticing offers can drive purchase behavior for members of all engagement levels and points balances.
“We are thrilled with the results of our first Apple® Rewards promotion,” said the Loyalty Solutions client. “It far exceeded our expectations, and we are eager to plan more in 2023 to continue engaging our growing member base.” The client is planning several Apple® Rewards promotions for this year and will use the 2022 promotion data as a benchmark to measure success.