We’ve noticed that there are very few stable rewards programs — meaning that they are either on their way ‘up’ or heading ‘down’. The fundamental reality of the rewards economy (if there is one) is that competition, economics and program design all play a role in the effectiveness of a rewards program.
These programs require investment (often significant) and the ROI question frequently pops up after the initial ‘breaking in’ period. The problem is often with how companies react at that stage.
So what puts a rewards program on an upward trajectory (from a ROI and popularity perspective)? A few things:
- Putting resources and effort into mastering the packaging, messaging and promotion of your rewards program
- Defining what behavior your company wants to reward and then genuinely rewarding it?
- Avoiding an accountant’s view of rewards — like constantly focusing on cost cutting at the expense of program effectiveness.
It distills down to one point: is your company really committed to its rewards program as a key pillar of your marketing efforts or are you just tagging along with competitors in a follow-the-leader approach?