Significant Customer Engagement Lever: Redemption – But for whom? Part 1
Photo by Rémi Jacquaint on Unsplash

Significant Customer Engagement Lever: Redemption – But for whom? Part 1

Being a perpetual student of customer experience, am usually in awe of the cathartic manner in which truly customer centric brands execute flawlessly on their inherently deep customer engagement strategies. These customer obsessed corporations have made delivering superior customer experiences a prime CXO dashboard real-estate candidate. The one common denominator, amongst such companies, is the laser sharp and unwavering focus on providing the finest possible experience at all customer engagement touch-points. And responsive organizations, once having pivoted on digital, undertake a thorough rethink/review of their strategies in this domain.

The story that I am about to recount is about an engagement I had a couple of weeks back, with one of the largest and finest global brands in the hospitality industry – the brand name is irrelevant for the purpose of this missive. And am recounting it here and examining it from various angles since it pertains to the area of customer loyalty management – a CX sub-topic extremely core to what I am and what I do today. So, read on and at the end, let me know what you think.

Thanks to a fairly hectic travel timeline pre-Covid, by end 2019, I had amassed a modest tranche of loyalty points in the loyalty program of this brand. Since 2020 was a washout and 2021, too, doesn’t hold out too much of travel and stay promise, I decided to execute an “activity” within the loyalty program since “no qualifying activity for 24 consecutive months” would render my cache of points invalid. And “redemption” or “burning” of points was considered a “qualifying activity”.

So, I went on to the website and checked out the options available for the tranche of points I was planning to redeem. Now, I have always felt that the process of redemption as an experience on most loyalty program websites are not clearly stuff you can happily write home about. Things were not too different here. Anyways, after a lot of research, I decided it was best if I converted my points to Amazon Pay gift certificates (GC). There were 3 denominations to select from. I selected 6 of the Rs 2,500 denomination GC and completed the request on 30th March. So far, so good.

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Starting 24 hrs later, elements of CX friction kicked in.

Moment of Gratification: The next day, I started checking my phone and my email inbox for messages that would contain the Rs. 15,000 GC details – the code that I would need to add the GC to my Amazon Pay balance. Alas, even after 3 days, that notification remained elusive. My moment of gratification was delayed – and anguish was compounded by the fact that I had expected at least this level of sophistication from the brand. 

Help!: On the 4th day, I went to the brand’s loyalty program page with the intention of raising a query – where art thou GCs?! The only way to communicate was by dropping a customer support note. I did so, with an increasing sense of helplessness. A conversational CRM channel (like WhatsApp) to communicate could have been more comforting? Definitely, yes. To the brand’s credit, I received 3 replies following my request:

  1. The first reply came about 30 hrs later – it acknowledged my message and promised to forward my concerns to the relevant team and that it could take 7-10 days for a reply. In my mind, that was 168-240 hrs. Long time, eh? Yes, Darlene insisted they appreciated my loyalty.
  2. The second email from the brand's marketing support team came 36 hrs after the first email that helpfully updated me that they have forwarded my request to the Research Team and that I should hear from them in 3-5 days. In my mind, 72-120 hrs. And yes, you guessed it right, Tonni appreciated my loyalty echoing what Darlene had mentioned earlier. 
  3. The third email came in about 112 hrs after the second email. This email gave a more definitive form to the suspense. Triumphantly the message announced that the said GCs were “handled by our partner, M” and that the brand, sorry, had no “access to delivery details”. If I wanted to understand if there was light at the end of the tunnel, I can log on to a website, put in (repeat) a few details and the M team would respond to me (in other words, I will then be well and truly on another customer service journey with no specific ETA). Of course, I was profusely thanked by Sarah for being a valued member of the program. I almost felt like Harvey Specter for some time.

Long story short, my shout for help, after roughly 178 hrs (7.5 brand days) wouldn’t have left me any wiser as to where my GCs were – had it not been for a wonderful event that happened in the intervening period between the 2nd & the 3rd email – well, roughly 32 hours before email #3. The physical GCs arrived! The 9th day was my day of redemption!

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I will pause here and invite some fantastic brains in the customer experience business to share their perspective of my experience so far. Was it truly friction-loaded or was it just about a wrong choice of tyres – dry weather tyres when it was pouring cats and dogs on the F1 circuit. Or am I over-thinking and is this possibly the best experience one could have got. If things can be improved, what facets could be worked on to deliver a better CX? Would love to hear from all the bright CX minds around.

Meanwhile, what happened after I opened the package will surely interest you – hence will cover it in a follow-up article to this! To say I was overcome with a mix of emotions would be an understatement. Stay tuned! Till then, “BonVoyage” – through this article! ;-)

Rod Mitchell

I work with CX-focused leaders to motivate and align their team to provide amazing service and fiercely loyal customers.

3 年

I read your redemption experience with interest being in the incentives business. Clear expectations and communication was missing and turned your award from a positive to a negative. In other words, it failed. Thank you for sharing your story. I plan to use it to help communicate to clients how critical the process of redemption is.

Piyush Chowhan

CTO | Entrepreneur | Mentor | Digital Advisor | Retail | AI Enthusiast | Startup Builder

3 年

These point bases loyalty systems are things of the past.. Most customers dont care about these points anymore (apart from airlines which also is extinct now...:-) The reason for the same is customers look for instant gratification. The point based systems have multiple touch points and multiple friction points which makes it a bad customer experience for the return that you get.. Hence always believed in Every Day low price model rather that these complicated point based loyalty.

Ranjit Satyanath

Retail | Brand Stories | Digital Transformation | CIO | CTO with Startup experience | Ex Croma, Shoppers Stop, ICICI Bank

3 年

What I found interesting was that you chose to use the points to buy the GCs of a retailer who does not run a Loyalty Program - in the traditional sense. Period.

The thing about a redemption experience is you want to make it a delight, a positive experience that the member will remember, ideally for life. The last thing you want to do is annoy him or her off. Several points in the story above: 1. Handle expectations. If the brand said it would take 14 days (you would have been irritated), and then delivered in 9 (you would have been delighted). Either way, this could have been done far better than what you went through. 2. Thinking ahead. You aren't the only member impacted by the virus. They should have had a strategy to manage folks like you who may have loved to travel but couldn't. In a few months from now, when things open up again -- they will need your business. The best of ensuring they got it is by the program -- they could have offered you a holiday on your points, valid for 6 months from when the destination you pick opens. You would go, spend tons on the spa and F&B -- and helped fill the resort. Or even meals, the spa or a stay at their local property on the same terms. The list goes on. God, 3. Redemption costs. Don't even go there -- Amazon GVs and VPP / CPP ratios? Ugh. Worse still, at the moment of truth in your redemption process (i.e. when the goodies you buy from Amazon come in and you use them) the packaging will be of Amazon. Not the hospitality brand. What an unfortunate thing to do. 4. Partner management and visibility. Disappointing, this is an operational lapse that to my mind is completely unacceptable. Why aren't they using the Amazon dashboard? 5. Communication. The problem with defining the responsibility in customer service teams inappropriately results in customers being bounced from person to person -- as happened to you. Quite simply the executive's responsibility should be to fix the problem, not play pass the parcel. 6. Recovery. They still have that opportunity. Perhaps someone will call and say, "Dear Siju, I am the manager responsible for redemptions at BIG HOTEL CO and I am really sorry about the experience you had with your redemption. I know it is unacceptable, but I thought I should let you know that we are working under exceedingly difficult conditions here, Covid-related cost-cutting resulting in short-staffing and under-training, WFH and much else besides. We understand this is not your problem, but I thought I would share this with you in the hope of your understanding. We will do better when things improve, and we do look forward to welcoming you back to our hotels and resorts then. Till then, thanks for your patience, and many thanks for your loyalty." . . . I can go on, but I think you get the point. However, I am relieved that they appreciate your loyalty.

Subhajit Mazumder

Tech Business Leader | Consulting | ICF ACC Coach

3 年

You've had a rocky ride, and I hope you get your GCs. A lot of brands, do not ensure that all user journeys are enabled. Programs are designed with the best intent, but not followed through.

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