Nuts & Bolts - Case Study: Digital Rewards for Loyal Tech Customers
Depending on the purchase, Gold members receive vouchers for 25, 50 or 100 "ClubCoins," which they can redeem for digital rewards, Thompson says. Since including the digital prizes in the SSC, Sapphire's run six separate rewards campaigns.
"Sapphire Select Club had a very high redemption rate for the vouchers," Thompson says. "[It's been] 100 percent over the course of all six programs, and an average of 25 percent of the redemptions were from new members who joined SSC to receive the first club [rewards]."
At the same time, SSC has continued to grow overall. Since starting the loyalty program in October 2009, Thompson explains that the club has grown at an average rate of 36 percent a quarter. He says the club is effectively "gaining, retaining and rewarding loyal customers of Sapphire."
Plus, the new digital offerings provide another level of satisfaction. Now all the loyalty club members greeted on the rewards redemption site by Sapphire's stern, cross-armed female avatar can spend more time with her cousin in graphic representation, the intense gun-toter Lara Croft, by downloading that Eidos video game as the instant reward.