Experiential rewards are the new wave in the customer loyalty space

Experiential rewards are the new wave in the customer loyalty space

Experiential rewards are the new wave in the customer loyalty space

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In a hyper-competitive world, a well-conceived, well-run incentive, recognition or reward program helps a company improve productivity. Recently, experiential rewards have been gaining popularity. Irrespective of the industry, experiential reward opportunities are of top priority. These rewards are very impactful in helping to differentiate an organization from its competitors. Importantly, these experiential rewards can create stronger impressions than fleeting transactional rewards. For instance,

  • In March 2022, credit card issuer, Capital One, announced that reward cardholders will now be able to redeem their points for entertainment events such as concerts and sporting events. The cardholders can access this offer through its new platform, Capital One Entertainment, from the Capital One app or online. Moreover, the credit card issuer is providing cardholders to redeem rewards for tickets to over 500,000 events. 

However, the redemption rates vary depending on the card customers use to get the tickets. Venture family cardholders earn miles and will receive a transfer rate of 1 mile to US$0.008. Customers with a Quicksilver or Savor card earn cash back and will receive a transfer rate of 1:1. As compared to Venture cardholders, Savor and Quicksilver cardholders have a little more flexibility. These cardholders can use their rewards to redeem tickets or statement credits and get equal value for their rewards.

Capital One, which launched a new high-end travel card called Capital One Venture X, has special offers for this segment of cardholders. Capital One Entertainment platform is available to all of its Capital One rewards cardholders, while Venture X cardholders will be able to access exclusive events and offers. Venture X cardholders could redeem ticket packages for 100,000 miles and experience NCAA Men's Final Four Weekend in New Orleans, including two suite seats, passes to Capital One JamFest, and Men's Final Four Fan Fest presented by Capital One. The second option for cardholders was redeeming 100,000 miles for tickets for the iHeartCountry Festival in Austin, TX, including premium tickets and access to a sound check with headliner Thomas Rhett.

These experiential rewards work as incentives to create lasting memories through such experiences as concerts, events, and cultural activities. This helps the company build brand loyalty to the highest degree. Therefore, Capital One plans to add more exclusive experiences throughout the year. Events like the Capital One Orange Bowl, the College Football National Championship, iHeartRadio Music Festival, and many more.

  • In February 2022, Capital One announced a new reward, Capital One Dining, in the form of a dining experience for the eligible rewards cardholders. This will help the cardholders to make reservations at a number of top-rated restaurants in their city.

To provide these experiential rewards, Capital One partnered with Chef José Andrés, the Michelin Guide and the James Beard Foundation to prepare a list of restaurants for cardholders to enjoy. The cardholders can now make reservations to more than 350 restaurants in 11 US cities through its reservation booking platform. Thus, all eligible Capital One rewards cardholders will be able to use the app to find restaurants in their city, make reservations, and communicate dietary preferences with the restaurant. 

Therefore, brands and businesses are employing these experiential rewards in their strategies as these are turning out to be more effective than most transactional rewards. Experiences can elevate satisfaction to loyalty within any industry. Thus, the credit card issuer is repeatedly seen employing this loyalty strategy to deliver a better, faster and highly personalized experience.

To know more and gain a deeper understanding of the loyalty programs market in the United States, click here.

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