Why loyalty marketers should pick up the auctioneer’s gavel
In Alfred Hitchcock’s classic film North by Northwest, protagonist Roger Thornhill—played by Cary Grant—used outrageous theatrical bidding at a high-class art auction to draw attention to himself and to ultimately deliver himself to safety from the bad guys. Though there are better ways to differentiate oneself than Thornhill’s over-the-top bidding style, there’s something to be learned from the classics. As loyalty-program operators continue to seek new ways to engage their members, loyalty auction techniques have resurfaced as a strategic program design option, particularly now that such auctions have evolved to take advantage of new technologies and to further leverage a program’s ability to communicate with members.
Faced with rough economic times and loyalty program ubiquity, loyalty marketers need creative ways to add value to their programs without incurring a substantial increase in costs. Members who perceive parity in loyalty value propositions in general have forced operators to seek new reward content that optimizes redemption impact, differentiates value propositions initiatives, and fuels greater and more productive engagement. Auctions can provide…