Can You Turn a Points Saver into a Spender?

Research and White papers

Does the satisfaction of saving really outweigh the thrill of spending? In a 2019 survey of 1,251 loyalty program members conducted by Angus Reid, more than 33% of loyalty program members said they plan to save their points in 2020 with no goal in mind. And while saving is a worthwhile habit to cultivate in life, in loyalty it can mean decreased engagement with your program.

Targeting individual members or small subsets of members based on their loyalty profile is one way you can create engagement without upsetting the balance of your greater loyalty program. Here’s how to engage three different types of loyalty savers:

The Hoarders: For members who are hesitant to part with their points, the ability to top up their balance and appeals to maintain or reach elite status will keep them engaged.

The Sleepers: Greater program awareness is key to engaging inactive members. The option to reinstate expired currency or sending them targeted reminders are great ways to wake them up.

The Minimalists: Fifteen percent of members don’t have enough points to redeem. Engage low-balance members with accelerated earn promotions or combined cash-and-points options to boost their balance.

From this understanding, loyalty programs can target these very members with specific currency retailing promotions to nudge them along their membership journey. Loyalty after all is about building a positive relationship with someone, and when you’re able to offer a member exactly what they need, you’ll be well on your way to creating deeper, more meaningful engagement no matter the type of member profile.

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