Rewards vs. Points: Build Better Brand Relationships
Posted on October 28, 2014 by Brittany Fleit, Content Marketing
When it comes to mobile advertising, success is about engagements, not impressions.
Engagements build stronger relationships between brands and consumers. They enable brands to create successful loyalty programs, developers to increase user retention and consumers to have better experiences.
However, the persona of mobile engagements is changing. Users don’t respond to tried and true techniques. Out with the old and in with the new – or in this case, out with points-based loyalty systems and in with made over brand relationships.
Building better relationships
In this age, it’s universally acknowledged that impression-based advertising is bad for business. Take banner ads, for instance. Banner ads have dismal click through rates of 0.1 percent and worse yet, 38 percent of those clicks are the result of “fat finger syndrome” – i.e. they’re accidental. Users don’t pay attention to display ads, unless it’s to close particularly annoying content.
Instead, many brands turn to advertising that adds value by forging emotional connections with consumers. They do this through rewards.
There are two types of rewards. The first are points-based rewards. These systems enable users to accumulate points inside various apps and use them to buy items from the brand of their choice. The second branch of rewards are moment-based rewards. These are real-life and virtual goods that appear during in-app activities. Items range from free samples to gift cards to mobile game currency.