Highlights of the week (May week 5)

??Metro's rewards program members have doubled in less than a year.

Metro is celebrating the successful first year of its Moi Rewards program, which has more than doubled active members from 1.2 million to 2.5 million in a year, with its members redeeming more than $65 million in points for daily necessities. Moi allows its members to accumulate points faster and redeem them to save on everyday essentials at grocery stores and pharmacies. The strength and complementary nature of food and pharmacy networks have become critical components of the program's success. Moi was also ranked as the most widely used rewards program in a recent Leger's Wow 2024 survey. The rewards program becomes an important part of Metro’s digital strategy, especially in better understanding their customer base so that they can offer them rewards that are useful for their everyday purchases. Moi rewards program is mainly made as the company’s effort to provide greater connection to maintain a privileged relationship with their customers, especially since customer engagement has become something that is more important than ever. The company also announced that its rewards program will be implemented in hundreds of Metro and Food Basics stores later this year in order to maintain their recent success.?

??Leading Swiss travel portal to announce user-generated content rewards program

Fireflies, a leading Swiss travel portal, has recently announced the launch of its user-generated content rewards program, which will be accessible in Q4 2024. This new initiative aims to reward and incentivize community members who create and share high-quality user-generated content on the Fireflies platform. The user-generated content rewards program by the company serves as an innovative approach that encourages users to create original content, such as videos and photos, to showcase their unique experiences with accommodations, destinations, and activities booked through Fireflies. In return, user’s creativity and insights will be rewarded with exclusive digital collectibles that can be used to enrich their future travel adventures. Fireflies' goal is to build a vibrant, content-rich community where people can share their knowledge and creativity. The program also uses a transparent evaluation process to determine its reward distribution. This aligns with the company’s mission to build a decentralized, user-driven platform in which members not only serve as participants but also as active contributors to the ecosystem’s growth and success. The user-generated content is also part of the company’s way to recognize and reward incredible talent and creativity within our community. The company spokesperson mentioned that they are very excited to see the diverse range of content that their community members bring to life. It also serves as a significant step in a company’s journey to create a more inclusive and rewarding platform for people.

??Red Robin helps burger lovers earn free food faster with a revamped rewards program

Red Robin Gourmet Burgers has revamped its popular rewards program, Red Robin Royalty, to help members earn free food and perks faster than ever before. Based on an internal survey conducted recently, more than half of the respondents indicated that they are looking for a rewards program that offers a fast earning process. This prompted Red Robin to keep up the pace and replace its previous rewards program, which provided customers with a free entree for every nine entrees purchased. However, with the new program, Red Robin hopes to make members feel like royalty when dining at their restaurants. Each member will earn one point for every dollar spent on qualifying purchases. When members reach 100 points, they will receive a $10 reward to use on their Red Robin favorites. This revamped rewards program is one of the most recent efforts in a series of upgrades that the chain is currently implementing to improve the guest experience through culinary innovation and exceptional service, as well as a faster earning points process and exclusive rewards. One of the recently revealed exclusive rewards focuses on giving new members the feeling of being treated like royalty, including sneak peeks and early access to new menu items, exclusive offers, free birthday burgers, and even free appetizers upon signup. This new program also coincides with the company's recent “Leave Room for Fun” marketing campaign, which aims to remind people how great it feels to embrace their fun side and reward guests for dining at Red Robin.?

??Hugo Boss introduces a new world of engagement through its innovative rewards program

HUGO BOSS elevates its existing membership program with the launch of HUGO BOSS XP, a groundbreaking omnichannel member experience centered on the HUGO BOSS customer app. The program, which uses cutting-edge technologies, is part of a multiyear strategy to establish a new landscape standard for customer engagement, with a focus on member experience and customer lifetime value. In doing so, HUGO BOSS makes another significant investment in the company's future through a rewards program. The new program seamlessly combines traditional reward features like tiers and points with innovative blockchain-based elements. The program also incorporates initial web3 features to create new customer engagement opportunities. Because of this integration, members can earn special tokens, which can be redeemed for purchases and other interactions across channels and brands. The integration with tokenization also serves as a key to unlocking exclusive products, one-of-a-kind brand experiences, and additional offers from HUGO BOSS, with the possibility of token trading in the future. Not only does this program benefit customers, but it also strengthens the company’s position as an industry innovator. The company's Chief Sales Officer stated that the new membership program will increase customer engagement and improve brand interactions. They are also committed to driving a higher lifetime value by deepening their relationship with their customers, thereby advancing their profitable growth in today's tech-driven fashion industry. The current rewards program will be completely upgraded over the next few years, with the first version of the new membership program debuting in the UK later in June. Customers can choose whether to experience the program through HUGO or BOSS, which aligns perfectly with the Group's two-brand strategy to enhance brand discovery and engagement.?

Despite the interesting topics discussed above, we also have some additional "news worth reading" about rewards program advancements below.?

??The power of earn and burn rewards program?

In an ever-changing digital world, increasing customer engagement is critical to business success and one of the most effective ways to achieve that is through earn-and-burn rewards programs. This simple but effective marketing strategy gives customers reward points for every purchase, which they can then redeem for exclusive rewards, discounts, and other benefits. This strategy has been used in a variety of industries, including supermarkets, hotels, and e-commerce, to increase customer retention, gather valuable data, and gain a competitive advantage. This marketing strategy is popular and has evolved to include more innovative benefits, engagement, and gamification rather than simply earning points. Previously, this strategy only rewarded customers with points for their purchases; however, it is now used to reward people for their actions, such as following a social media channel or writing a positive review, which encourages significant engagement. Implementing an earn-and-burn program is a thrilling endeavor, especially because it allows brands to create something appealing that will later drive point accumulation. Earn-and-burn rewards strategy also serves as something that is mutually beneficial not only for customers to get exciting rewards, but also for brands to implement clear communication and get insights for their customer base. Another significant benefit is that the earn and burn rewards program has the lowest barrier to entry. While this strategy is considered one of the oldest rewards strategies, with the integration of technology, it has become something that is sophisticated, interactive, and makes every interaction more customer-centric. In the end, customers nowadays engage with those brands that can provide real value, and an earn-and-burn strategy is one of the perfect ways that brands can try it out.?

??How to protect credit card rewards as there’s a surge in customer complaints

The Consumer Financial Protection Bureau (CFPB) is currently focusing its efforts on the credit card rewards program industry. The agency's focus on rewards comes after a 70% increase in consumer complaints about credit card rewards since before the pandemic started. In May, the CFPB issued a report outlining common consumer complaints and held a joint hearing with the Department of Transportation on airline rewards programs in the United States. The CFPB stated that they want to ensure that every credit card program member receives what they are promised and that the credit card market is truly fair, competitive, and transparent. The most common complaints about credit card rewards programs are the bait-and-switch of not receiving rewards after signing up, reward devaluation, inability to redeem rewards, loss of rewards access, and reward expiration. While the CFPB has not yet taken any action against these issues, and while regulation may be key to some issues raised by cardholders, the organization revealed multiple things that people can do to better prepare against conditional or unclear offers before facing any problems. People are encouraged to start reading the card terms and conditions carefully, using points collected immediately before they devalue, and finding the right credit card rewards program that suits their needs. The CFPB is also currently focusing on interest rates, as many people, particularly in America, owe more than $1 trillion in credit card debt. This is because popular rewards cards frequently have the highest interest rates, whereas non-rewards cards with lower interest rates are typically less well-known and marketed. Additionally, the CFPB also expresses concern about an increase in the number of buy now, pay later companies, which many people have become familiar with, as well as how they are widely used and influencing the economy.?

??Do large airline rewards programs play a role in hindering competition??

Do the rewards programs of the Big Four US airlines stifle competition? The three discount airlines that attended a recent hearing on how the government intends to change the credit card rewards program said yes. One of the concerns, of course, is the impact these programs may have on the ability of other players, particularly smaller players and newer players, to compete. Discussion about the topic was driven by Spirit's chief commercial officer, who said that consolidation with American Airlines, Delta, Southwest, and United Airlines controls approximately 80% of the domestic airline market and drives the majority of flyers to the Big Four rewards programs. The discussion focuses on how this condition will make customers feel trapped. If they are in cities dominated by specific airlines, they must fly with those airlines, and many times they will be introduced to the airlines’ rewards program. This shows how the Big Four airlines controlled the industry and limited customers’ access to smaller airlines, which made it harder for smaller carriers to become relevant. There’s an argument that highly profitable rewards programs often allow large carriers to sell tickets at lower prices than they would otherwise, which harms discount carriers. Some experts believe that large airlines can use their market position to negotiate more favorable co-branded credit card terms with banks, which is anti-competitive. However, many people believe that blaming a frequent-flyer program to stifle competition is ridiculous because there is a low barrier to entry in offering an appealing program, and any relative disadvantage is not the huge airlines’ fault.

??Why DeFi protocols love to offer rewards points before airdrops

?Rewards programs pioneered by NFT marketplaces are beginning to dominate decentralized finance. Many DeFi protocols have now started to reward users with points for completing specific tasks, such as trading or locking up their tokens, which has become a new way to effectively attract users. There is also a growing meme that rewards points serve as a quantitative representation of a user's contribution to a network. However, many people are aware that if a specific protocol begins to distribute reward points, they will consider conducting an airdrop soon. Airdrops are intended to reward long-term users and can be worth tens, if not hundreds, of thousands of dollars to some. As a result, people frequently flock to protocols that they suspect are planning an airdrop. However, some projects like to keep their plans hidden to avoid users who are only looking for a quick buck and are uninterested in the projects. The use of rewards points can help DeFi projects to direct user behavior in unprecedented ways.? They can also attract users without actually promising a token, which is useful in some countries like the United States, where the legal status of tokens is debated. One of the DeFi protocols that implements reward points is Blur, the largest NFT marketplace by trade volume. Since then, many DeFi protocols have followed the path to incorporate a variety of point systems. The use of reward points in DeFi also becomes an ideal way to quantify user activity, opening the door to a plethora of new possibilities and plans. In some jurisdictions where regulators are cracking down on cryptocurrency, points can also help projects avoid the legal headaches that can sometimes accompany token issuance. Points can also help DeFi engage in marketing activities before regulatory clarity is achieved.