Expiring Customer Rewards: A Great Way to Kill Loyalty (Aug 2015)
A fun old post from Greg about expiring loyalty points. The deeper we entrench ourselves in the loyalty industry, the more we realize how may different aspects we can address.
Forgive me if I am wrong, but as a consumer, don’t merchants give us reward points to show appreciation of our loyalty? Why in the world then would they later take them away from us by expiring them? “Hey, thanks for shopping! We really value your loyalty. (Whoops, actually we don’t. Sorry, but please come again!)”
Is your loyalty to them supposed to expire too? Actually, that is exactly what happens. Expiring rewards removes one of the most important barriers to exit: skin in the game. When those rewards you earned expire, well, why not go shopping around for another program that doesn’t put an expiration date on your loyalty? Duh!
So why do they do it to us then? Simply put, they have to. When you earn a reward at a merchant the value of that reward becomes a liability of the merchant or program operator, like a debt owed to you. Over time, that total debt owed to everyone grows and can become a big problem! Take American Express for example. In 2013 it had over $6B of Membership Rewards debt outstanding! Ouch!
Our RibbitRewards program is the world’s first global coalition rewards program. You will soon be able to earn RibbitRewards at any participating merchant, anywhere on earth! RibbitRewards will initially be redeemable to purchase millions of products and services on our soon to launch, free to use, p2p Marketplace.life.
Unlike other rewards program operators, at Ribbit.me we believe when you earn rewards for your loyalty those rewards are yours, forever! They never expire. Your RibbitRewards can be like your savings — over the years maybe one day to use for that dream vacation you always wanted, or a maybe a new car! You are in complete control and you decide.
What about the liability you say? Ah ha, that is where our magic comes in. No, not the magic of your disappearing rewards and loyalty, the magic of the disappearing liability. Our patent pending coalition rewards platform built on blockchain technology removes the liability completely. This means all of your favorite merchants can give you RibbitRewards for your loyalty, without ever having to “take them back.” Pretty cool huh? We think so too!
Blog post by @gregorylsimon