When running an online incentive program, it’s very important to keep track of the redemption rates of your participants. You want to see them accumulating a steady flow of points, and spending them in the online rewards catalog. If redemption rates are too low, you run the risk of your program failing.
If you notice that your redemption rates are a bit below average according to this timeline, don’t despair! Here are some of the most common issues that can contribute to low redemption rates, along with some simple solutions.
Participants aren’t exhibiting behaviors that earn rewards.
The problem may be as obvious as the fact that your participants aren’t spending points because they aren’t earning them in the first place. Be sure to set clear goals and parameters regarding point rewards so that your participants understand exactly what’s expected of them.
Your incentive rewards aren’t enticing.
It may be that, in setting up your program and allotting a certain payout for points distribution, you’ve undershot the mark. Your incentive program provider may have given your participants access to an expansive catalog full of exciting merchandise rewards… but if your participants are never able to rack up enough points to redeem worthy rewards, they’ll quickly lose interest. A good incentive program provider should be able to assist you in calculating the proper points-to-employee ratio and maximize program engagement.
You’re not properly promoting your reward program.
Another common problem that can lead to unsatisfactory redemption rates is lack of awareness about the program. More often than not, a failed incentive program can be traced back to a shaky launch strategy. If you’re still in the planning phase of your online incentive program, be sure to get the word out about it and generate buzz with contests, announcements, and informative email reminders.