The age where tracking, motivating, and rewarding human behavior on a global scale becomes possible.
In our last blog post, we covered the era of Rewards 2.0. The reward program limitations of 2.0 were largely caused by technology and the nature of printed rewards catalogues. Fast forward to the era of Rewards 3.0, and technology has become rewards’ best friend!
The era of Rewards 3.0 and the global adoption of the Internet introduced the world to limitless selection on a global scale. The method of curated rewards, presenting limited choice to the end user, is rapidly becoming a way of the past.
Does your current rewards program limit reward choice?
Today’s consumers are a mix of Gen Y (Millennials) and Gen Z and they have grown up with choice that the Internet made possible. This demographic is very tech-savvy, with exposure to technology for most, if not all of their lives. According to PWC, Millennials will comprise 50% of the global workforce by 2020.
The Internet, like no other medium, has created opportunities to drastically change how we manage rewards on a global scale. Cloud computing paved the way for the explosive growth of ecommerce. The shift from traditional “bricks and mortar” to ecommerce has caused massive advancements and efficiencies in both courier and warehouse delivery systems. These improvements have built the drop ship, ecommerce economy.
According to Matt Linder, Associate Editor of Internet Retailer, the web will account for 7.3% of global retail sales in 2016, growing to 12.4% by 2019.
This may in fact be a large understatement! Many categories including online travel, books, music, gaming, and many other traditional retail categories now have an online market share approaching 60% and even higher outside North America and Europe. Even more compelling is the fact that categories like fashion, which many experts postulated would never yield to online are now being completely transformed by the massive influx of online fashion sites that span the globe.
Websites including Zalando, Paris Gallery, Gilt, and many others that didn’t even exist just 6 short years ago are driving explosive online growth with market cap values measured in the 100’s of millions.
Nothing is immune to the disruptive powers of the Internet.
The era of Rewards 3.0 has unlocked limitless opportunities to create real-time reward solutions while connecting our members to a world of choice.
Online shopping is the new retail; driven both by light speed technological advancements and according to Business Insider two tech-savvy generations (Y&Z) now make up the majority of online purchasers. This is highly relevant to our industry and ignoring the buying habits of this audience that will soon make up more than 50% of the world’s labor force can’t be good for business.
In just 15 years, shopping habits have changed forever but how is our industry evolving to meet this challenge?
The effects of this quickly changing tide will mean massive shifts to Rewards 3.0 which consolidates all major reward categories including online travel, digital media, e-gift cards, mobile top-up, and merchandise into a single platform. Similar to e-retail, the world’s tech-savvy shoppers now expect “choice” and this is just the beginning. Rewards 3.0 also delivers everything on a global scale and for the first time we can truly connect an entire world through a single reward platform.
A single platform creates massive efficiencies and this has paved the way to even greater reward selection through integrations into global fashion, Uber, Airbnb, and my personal favorite: GCodes.
While the medium is the Internet, the driver today and into the future may well be the lowly e-code. A blockchain, encrypted code that is fraud resistant and can instantly connect member data and buying power to a country responsive rewards platform.
A new reward currency?
World meet GCodes.
Given the advancements of ecommerce, virtually every generation is now well versed in navigating online shopping. Ecommerce, and the choice it delivers, is second nature to almost everyone on the planet. Online shopping is intuitive, fast, and easy. For recognition, performance, and loyalty providers, there is no reason, neither technically nor behaviorally, to limit reward selection. However, that does not mean we should ignore program design.
Today’s ecommerce sites have limitless tools that help us to target offers by market segment, or connect a member to a personal shopper while delivering targeted messages and offers that blend creativity within a traditional retail campaign. True ecommerce marketing can be easily applied to our closed loop, points-driven eco-space.
When evaluating your rewards program, be sure to select a provider that not only offers endless reward choice, but also offers a truly global solution!
Contact us today to learn how you can join the Rewards 3.0 revolution!