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HomeOPINIONThe benefits of rewarding non-transactional activities

The benefits of rewarding non-transactional activities

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Product and price is all very well, but retailers are increasingly seeking to avoid discounting by incentivising non-transactional behaviours instead. Ros Netto, consultant at Truth Customer Academy, shares some advice.

Over the past few years we have explored the rising trend of rewarding loyalty members for non-transactional behaviours and according to this year’s data, consumer interest and attitudes are improving.

The popularity of incentivising and rewarding desired behaviours beyond transactions is understandable. From a brand perspective, advantages from non-transactional rewards are reaped in the form of increased consumer engagement and data gathering. Consumer insights surmised from actions such as online surveys, reviews and social media activities are invaluable.

Rewarding beyond transactions is frequently used as a mechanism to drive specific consumer behaviours. Higher usage of an app may be encouraged and rewarded in order to reduce postage costs of statements or incentivising consumers to update contact details will ensure the business’s database is up-to-date, containing correct information.

It is, however, not solely the brand that benefits from non-transactional behaviour; consumers do too. 

Rewarding customers beyond transactions ensures the consumer feels valued by the brand outside of monetary exchange. The interaction becomes more personal and consumers, who may not have the spending power to earn frequent points and instant rewards traditionally, feel a sense of inclusivity when given the opportunity to earn through action-based activities.

A great example of how a brand has seamlessly incorporated this into their loyalty programme is Vans. The Vans loyalty programme, Vans Family, is a programme designed to recognise and reward members for who they are and what they like to do. Members receive points for shopping and for engaging with the brand.

“As a part of the Family, members get insider information, access to member-only contests and experiences, and sneak previews of upcoming product releases. As an added bonus, Family members will also have access to exclusive patterns to customize footwear and accessories in the Vans Customs platform.”
– Vans press release

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