20 Key Elements of a Truly Engaging Alumni Discount Program
Alumni discount programs are a "top of funnel" engagement program to grab the attention of less engaged and/or reluctant alumni. But not all turn-key programs are as effective as they promise. Here are 20 of the most important elements to look for in a compelling discount program.
About a 5 minute read
Why are more and more alumni organizations (dues-paying as well as non dues-paying) offering their alums a private discount program as part of their suite benefits?
Because if it’s done right, compelling consumer discounts can be a powerful way to attract, engage and energize your alumni to get involved with their alma mater.
The rule of reciprocity suggests that people are far more likely to engage with an organization, if they are first offered something of significant value. Once you have attracted them to engage with your discount program, you’ll be far more capable of keeping them engaged once you get them "through the door" with your discount program.
That’s what thousands of organizations are doing now with great success, including non-profit groups, employee groups, employers, unions and trade associations. And it's all aimed at boosting member acquisition, retention and engagement.
But not all discount programs actually work. Some may claim to have what it takes to be a compelling alumni benefit, but they lack some important elements.
That's why it's so important to know how to differentiate between discount programs that truly engage, and those that just say they do.
If your organization is considering an alumni discount program, consider how it delivers on each of these key elements:
1. Is it a Closed (Password Protected) Discount Network?
Merchants reserve their best discounts for closed networks where they can control the exposure of their discounts behind a password protected wall. Discounts offered to the general public are usually not compelling, and aren’t typically a retailer’s best discount. Closed discount networks allow merchants to expose their best discounts to a targeted audience.
Without that level of security, your discount network will likely scare away many popular merchants.
2. Does a significant percentage of their revenue come from online transactions, insurance sales and other sources?
Some discount platforms don’t want you to know that their “free” or “nearly free” discount program has some hidden costs. Their business model shifts the cost burden of your so-called benefits program to the backs of your alumni. Frequently, it's because they have obtained their discounts from sophisticated affiliate marketing programs via an online affiliate network.
Consequently, these “free” programs don’t provide many (if any) of the most popular in-store discount offers because they can’t make money off them like they can an online transaction. Programs that offer mostly online discounts are frequently ignored by members because they lack value.
3. Is your organization’s branding front and center?
A major benefit of alumni discount programs are the regular, positive interactions your audience associates with your organization. As such, a discount program should provide the ability to private label the program on your organization's behalf. So when alumni save, it's your organization that benefits from the boost in awareness and goodwill.
Alternatively, some program providers just promote themselves throughout their web properties and apps. Don’t settle for that.
4. Do the majority of their discounts consist of in-store offers at a brick & mortar storefront?
Although online spending is growing, still 90% of all retail purchases are made in-store. If the discount program consists mostly of online discounts, then your discount program won’t have enough relevance to keep your alumni’s attention. In-store offers are where consumers spend, yet most discount programs don’t have local, in-store offers because they are expensive to acquire and maintain. Always ask your discount program what percentage of their discounts are from a local brick-and-mortar store where the offers are redeemed at a cash register.
5. Are the discounts in close proximity to where your alumni live and work?
This research shows how the average consumer travels just 15-20 minutes for most of their everyday purchases. The more frequent the purchase, the less willing they are to travel. Consumers will typically travel less than 8 minutes for gas or groceries, but may travel 15-20 minutes for other, less frequent purchases like a nice restaurant, a movie, auto services or apparel. If the discounts aren’t near where your alumni live and work, they are unlikely to engage. And to do that, it takes a truly nationwide network with discounts in urban, suburban and rural communities.
6. Are the discounts easy and convenient to redeem?
Consumers demand ease and convenience from the merchants they patronize. That’s why each offer must be easy to redeem, such as showing a coupon or a mobile phone at the point of sale. When your alums faces multiple steps to redeem an offer, or must wade through a flood of terms and conditions, redemption will be frustrating and lose their practical value.
7. What percentage of merchant offers are negotiated directly with merchants, and what percentage are obtained from a third party source?
If the discount network has direct relationships with merchants, they typically get the deepest discounts. If the discount platform uses a third party, those discounts are typically weak, modest discounts. Such discounts are not compelling enough to attract and keep your alums engaged.
8. Are the discounts unique or exclusive, or are they available to the general public?
The scarcity principle hearkens back to the economic fundamentals of supply and demand: the more exceptional or exclusive an opportunity, the more valuable it is perceived. When discounts are offered to the general public, they have little or no lasting appeal. But unique or “members only” discounts are generally considered more valuable, and are a powerful tool to attract your audience. Ask your provider if their discounts are open to the general public or not.
9. Do they offer the types of merchants where consumers make everyday purchases?
A compelling discount program must deliver discounts at places where your members like to shop, and on the things they already purchase. That includes fast food, pizza, casual dining, popular apparel and accessories, electronics, movie tickets, auto care, cell phone plans, etc. Discounts on everyday items like these should comprise the majority of discounts on your program.
It’s okay to have a few merchants like day-spas and Jiu Jitsu classes, but because the usage of these offers is so infrequent, they should consist of less than 1% of your network. These deals won’t inspire your alumni to use your discount program regularly.
10. How deep are the discounts?
It goes without saying that people want deep discounts and freebies. And while not every merchant is willing or able to offer a 50% off or BOGO offer, the best discount programs will offer very few ho-hum 5%-15% off deals. The deeper the discount, the more excited alumni will be to use the discount program on a regular basis. Look for programs where the average discount across all discount categories exceeds 25%-40% or more. Anything less than that is unlikely to inspire member engagement.