Rewards that are given out in Loyalty Programs are the biggest perception drivers for any program. The success of loyalty programs is dependent on the choice of the rewards more than any other factor. As part of running loyalty programs for our clients we process rewards in huge scale and thus have a ringside view of trends in what rewards people are going for, given the choice. In this post we cover 5 major trends that we have observed over the past few years of running these programs for our clients.
1. Vouchers are still on growth trajectory
Few years back the voucher share in the total reward catalogue was around 20%. But since then the country has gone through major disruptions in technology penetration, data consumption and online transaction comfort. All these factors still have their ripple effects and the voucher share has hit 50% in our rewards being processed. The growth story is still on and only time will tell at what level voucher share is going to plateau out.
2. Automobiles are holding steady
Automobiles have always been considered the most attractive rewards in trade programs and campaigns. Despite all the turbulence around them automobiles are holding steady at their popularity level. The individual reward we had processed the most in the last couple of years has been Honda Activa, which is in line with the success story of Honda Activa in the Indian market. Automobile companies are taking note of loyalty programs and are setting up centralised account management and payment systems to be able to handle it. Automobile companies who are yet to take note of this better react soon or run the risk of losing a major chunk of business.
3. Large Consumer Durables mix is changing
Among the physical rewards that are being requested, Large consumer durables are the biggest category. Their popularity continues but the mi within them is seeing a change. Previously it was the primary appliances such as large TVs, Refrigerators and Washing Machines which were the biggest in this. But over the past couple of years Air Conditioners and Smaller TVs have overtaken these subcategories to take the pole position. We believe it is due to the growing affluence of traders in the country. Where traders earlier used to go for primary appliances, they are now going for appliances which can be in multiple numbers in the household. Smaller TVs for bedrooms and Air conditioners for Bedrooms and studies in the house are being requested more and more.
4. Digital Electronics is growing
Another growing category is that of Digital Electronics which comprise of Mobile Phones, Laptops and related accessories. Mobile Phones across price spectrum are being redeemed in large numbers which is in line with the massive mobile growth story we are currently witnessing in the country.
5. New age products are seeing more acceptance
Lastly, among the physical rewards there a couple of new categories that are witnessing huge growth. These are specifically Water Purifiers, Air Purifiers and Air fryers. These are relatively newer categories which are exploding in their adoption. One important thing to keep in mind is that new categories such as this keep popping up and one of the biggest value additions that a specialised loyalty agency brings in is keeping their eye out for newer categories and introducing them to reward catalogues. These rewards keep the excitement going in the programs and act as perception drivers.
If you are looking for someone to help you run your Loyalty Rewards program with expertise in Loyalty Rewards Management, do reach out to us through the form in the link below.