Let’s address a serious problem that is occurring in our industry, even society as a whole: the loss of the “Wow” factor. The “Wow” factor is what makes an incentive or loyalty program unique, memorable and consistently successful. Unfortunately, in today’s society gifts are measured in currency equivalent, which is both easily determined on the internet and quickly minimized. We can call this the over-commoditization or commercializing of reward items available to us.
Most of have memories of earning gifts and prizes that still stay with us throughout our lives. Perhaps we knew the value, but the “Wow” factor was present enough to offering lingering or nostalgic memories. I remember one from a young childhood episode: in 1967, WABC-NY radio ran periodic loyalty contests. One involved sending a post card to the studio, stating why you liked a particular product. Oddly enough my card was picked—and through the mail received a package of that week’s top 40 hits - all in 45 RPM records (those were bigger than CDs, for our younger audience). Beatles, Lulu, Procol Harum, Box Tops, Strawberry Alarm Clock, Jefferson Airplane, etc.- that was some “Wow!” To this day, I recall the package sitting on the milk box (another 60’s concept) surrounded by snow with my name on it. I still have all of those 45s, almost 45 years later!
Can you remember the first gift that came through an incentive or promotion program years ago, that “Wowed” you? How about from a more recent reward program? Chances are in our jaded world, most gifts were received with a modicum of excitement.
One can attribute this lack of “Wow” factor to the world as we know it, thanks to mass media, the internet, big box stores and the general availability of items and their pricing. Look at the more popular items available in our industry. Travel-for-points is an example; these travel points are increasingly more difficult to use and redeem (unless you crave 6 a.m. flights), yet people continue displaying loyalty to the issuer out of fear of losing saved points. Merchandise brands with items such as electronics, watches, appliances, etc. are so ubiquitous that one only has to go on the internet to see the same items available with multiple sources and prices. A typical story is the guy who received a gift and quickly scanned the UPC code on this phone only to be disappointed by the value. Then there are gift cards; they are convenient, but clearly denominated in a monetary value or partially blinded under some point scheme. This forces us to go to some store (frequently not one of choice) or throw them in a desk banished to purchasing oblivion. “Is that all I’m worth, a $10 gift card”, asks the motivated employee? We all also know how the breakage model works, what value goes in, doesn’t necessarily come out. Not much “Wow” there.
So how does one still get back the “Wow” - with some work and creativity! Here are some trade tricks:
Bundling – Combining seemingly unrelated items that support a theme. Thus, for an incentive program, one might include a suitcase with a pair of sunglasses or a food package related to the destination.
Blinding – Putting together different items (sometimes from a related manufacturer), that support one another, which makes sense as one package. We distribute Keurig machines, presently a very popular commodity, but by adding K-Cups, cookies and cakes to create a Holiday package, we are adding value. This blinds the true cost and adds uniqueness. Blinding can also involve multiple manufacturers who have similar competitive lines, whose products are unusually not combined. For example, our “Chocolates of the World” include Cadbury, Ghirardelli and Lindt components.
Repetitive Step Incentive – Pete Mitchell, Director, B-to-B Sales Samsonite LLC, has done this by offering different parts of a 3-part luggage set at different intervals of an incentive program. Each recipient needs to do more to receive the next piece of luggage.
Creative Packaging – Dressing up a standard item with special or unique packaging, or customizing with a ribbon or personalization to give a more gift-oriented appearance. Our Goya Gift tray comes with a choice of ribbons, each imprinted with a different message in Spanish: Te Amo, Feliz Navidad, Gracias, etc.
GWP (Gift with Purchase) – A typical retail approach: purchase this large gift and get this smaller one for free. A store will create something, usually lower in value and not normally for sale, that enhances the buyer’s experience and motivation.
So in summary, programs can offer a WOW item, surprise and delight countering the competitions ability to play the pricing game. To borrow some great songs of 1967: if you really want to Light My Fire1 and earn my Respect2, then make me a Day Dream Believer3, and don’t give something that’s Kind of A Drag4. “Wow” me so I won’t question For What its Worth5. If not, You Can Tell me Goodbye6 hold the gift card and just send cash via Western Union7. You may have Heard it Through the Grapevine8, but the real details are here at Loyalty 360.
PS. If you want to test your record knowledge, the numbers above and their corresponding groups are listed upside down below.
1 The Doors
2 Aretha Franklin
3 The Monkees
4 The Buckinghams
5 Buffalo Springfield
6 The Casinos
7 Five Americans
8 Gladys Knight & the Pips
David Little is President of Nouveautes of Fairfield, NJ. Nouveautes, winner of multiple industry awards, represents exclusive gourmet lines including Starbucks®, Tazo™, Cadbury®, Jelly Belly®, Green Mountain Coffee®/Keurig®, etc. and supports many Loyalty & Incentive programs. www.nouveautesusa.com