58 / 116
MGM Entertainment and Major League
Baseball. The necessity for retaining valuable
employees and customers through loyalty
programs has become increasingly apparent.
Companies that have not yet implemented a
program, or are currently not generating
desired results from an existing program,
need to take action to execute a successful
incentive that solidifies customer and
employee loyalty.
Understanding Loyalty Programs
There are two main types of loyalty
programs: customer and employee. Both
types of programs have unique and defining
features that work to engage a targeted
audience, giving the company a higher per-
ceived value and leading to an increase in
ROI and revenue for the organization.
These programs function by recognizing
members for positive actions and behaviors,
and rewarding them with redeemable points
that can be used to obtain a specific incen-
tive, such as trending merchandise from top
name brands.
Consumer incentive offerings are becom-
ing an industry standard in nearly every mar-
ket. Today, a vast majority of people are
attracted to brands that provide a unique loy-
alty program. Industry research recently
found that 76 percent of Americans think
loyalty programs are part of their relationship
with brands and 46 percent of shoppers con-
sider them to be an important factor in their
purchasing process.
Customer loyalty programs are highly
valuable in engaging current clients and
attracting new, lucrative sales leads. This type
of program incentivizes customers’ involve-
ment with a brand and motivates more fre-
quent transactions. For the customers, it cre-
ates a meaningful platform for them to con-
nect with an organization on a more personal
level. As a majority of these programs award
points for both participation and purchases,
customers feel as though they are getting
more for their dollar and are valued by the
brand itself.
Employee loyalty programs are similar in
the sense of creating an engaging and moti-
vating culture, but within the office space.
These programs are profitable for organiza-
tions as they assist in retaining employees by
creating an inspiring and positive work envi-
ronment in which staff can truly thrive.
Employee recognition programs also increase
employee engagement, enhance communica-
tion across the company and encourage
employees to complete tasks in a timely and
efficient manner.
Retention and turnover are currently the
top challenges for HR leaders, says a new
study by the Society for Human Resource
Management (SHRM). The strengthening
job market has caused a jeopardizing shift
in employee retention and has increased the
need for employers to incentivize their
employees. Companies are now investing
more in employee recognition programs as a
way to boost overall performance and satis-
faction. In fact, the study found that 68
percent of businesses that offer a value-
based program saw a significant positive
effect on employee retention and workplace
happiness.
Find The Program To Meet Your End
Goal
Choosing a loyalty program, whether it
is customer- or employee-driven, depends
on the end objective the company wants to
achieve. While customer loyalty and
employee recognition programs are the gen-
eral categories, many third-party incentive
providers offer more targeted programs, such
as corporate gifting, training, and education
and sales incentives.
Deciding what program best suits the
company’s needs begins with first looking at
what the company aims to achieve. For
example, when one of the world’s top tele-
com companies was looking to improve
productivity across its various channels,
departments and locations, as well as engage
five different generations in its workforce,
company executives looked at the solutions
that could be achieved through loyalty
programs.
Among the problems, the company’s
employees worked independently and its
workforce was suffering from a below-average
score in overall employee happiness, morale
and satisfaction. While the company had an
employee loyalty program already in place,
managers across the different divisions were
executing the program differently, causing
miscommunication and confusion. The com-
pany wanted to unify the programs’ message,
strengthen corporate culture and have more
effective company communication.
Rymax developed an employee recogni-
tion program that was not only tailored to
engage a multi-generational audience
through proven segmentation tools, but also
offered a clear and concise message. The
program was a point-based recognition pro-
gram, custom-designed to drive specific
metrics in each channel, location and
department.
Employees earned points through both
positive actions and behaviors, which
included accomplishing goals on schedule
and supporting the company’s values. The
program’s online redemption platform
allowed employees to shop and redeem their
hard-earned points for products and mer-
chandise from top-name brands such as
Michael Kors, Calvin Klein, Thule,
Skullcandy and Voice Caddie.
Rymax also created a peer-to-peer
recognition solution to enhance the overall
communication across the company’s multi-
ple divisions, as well as improve employee
interaction. Both employees and manage-
ment were able to recognize colleagues with
a personalized peer-to-peer recognition
badge that was sent through the online plat-
form. Every employee at every level was able
to grant recognition, allowing them to pass
along encouragement at all levels, as
opposed to only management having the
power to recognize.
In addition to the internal loyalty pro-
gram solution, the company also executed an
on-site point redemption event that took its
employee engagement levels to new heights.
The rewards event brought together employ-
ees who normally would not engage with one
another in the workplace.
The redemption event was designed to
56 •
PPB
• OCTOBER 2015
GROW
The strengthening job
market has caused a
jeopardizing shift in
employee retention and
has increased the need
for employers to incen-
tivize their employees.
“
”