During the last few years, companies had to adapt and respond to the risks presented by COVID-19. To minimise the impact of the pandemic, companies made changes – in offerings and operations as well as adjusted their sales channel incentive programs.
To stay engaged and continue driving customer value, we saw companies pivot travel incentives to other rewards. For example, to merchandise or prepaid cards. We also saw companies leveraging their reward points platforms. They used them as a means of communication and connection with program members. Companies rewarded bonus points or opened status levels in their programs to drive sales during this period. Even restructured their program criteria to address potential market share issues or losing clients during this difficult time.
The short answer is, keep going, we’re not finished. As Australia and New Zealand reopened businesses and life returned to normal, it is important to understand that the recovery won’t be consistent across all industries. So, program managers have to ensure their incentive strategy, and their program structure is robust and that their rewards stay flexible and ready to adapt and evolve.
If we think of the following three-stage process, we still have a way to go. In this process, program managers can also look for opportunities and pinpoint potential blind-spots that their programs must attend.
In summary, there are urgent and ongoing challenges to address and the above will help in defining the potential actions that may need to be taken in your program on each stage of recovery. It will also put into perspective the future of your program and how will your program structure work in the ‘new normal’.
* The recommendation is to go through all the points at every stage of recovery and consider whether an action is required at that particular point.
