Updated: Oct 5
In today's fiercely competitive business landscape, organizations and associations are constantly seeking ways to attract, engage, and retain both employees and members. A well-structured rewards and loyalty program can be a powerful tool in achieving these goals. While the allure of "free" options may be tempting, the age-old adage, "You get what you pay for," holds true in this context.
In this article, we'll explore the value of investing in a fully managed rewards program, backed by research, showing decision-makers in corporations and associations that paying for such a program is a wise and strategic choice.
1. The Illusion of "Free"
The concept of "free" often appeals to budget-conscious decision-makers. However, when it comes to rewards programs, opting for free or low-cost solutions can have hidden costs and limitations. These programs may lack customization, scalability, and the necessary features to drive meaningful engagement. According to a study by Bond Brand Loyalty, 63% of customers believe that rewards should be customized to individual preferences. A fully managed program can offer this level of personalization.
2. The Value of Engagement
Employee and member engagement are crucial for an organization's success. A Gallup study found that highly engaged teams are 21% more profitable. A fully managed rewards program can be designed to align with your organization's unique culture, values, and goals, thereby increasing engagement levels. These programs often include features like gamification, social recognition, and peer-to-peer rewards, all of which contribute to a sense of belonging and purpose among participants.
3. Attraction and Retention
In today's competitive job market, attracting and retaining top talent is a priority for corporations. Similarly, associations need to continuously demonstrate their value to members. A well-managed rewards program can be a significant attraction and retention tool. Quantum Research found that organizations with effective recognition programs have 31% lower voluntary turnover rates. Furthermore, such programs can boost customer retention, as shown in a Harvard Business Review study that found that a 5% increase in customer retention can lead to an increase in profits ranging from 25% to 95%.
4. The Cost of Doing It Right
While investing in a fully managed rewards program does come with a cost, it's essential to consider the return on investment (ROI). A well-executed program can drive higher revenues, reduce turnover costs, and improve brand reputation. Further, customized rewards hold significant value as they cater to real-life employee needs, fostering contentment among employees who, in turn, seek recognition and support from their employers, which ultimately influences their loyalty.
In today's competitive landscape, investing in a fully managed rewards program for employees and members is not just valid; it's a strategic imperative. While the allure of "free" options may seem tempting, the value, engagement, and retention benefits of a well-designed program far outweigh the initial cost. As decision-makers in corporations and associations evaluate their options, it's crucial to remember that success often hinges on making the right investments. When it comes to rewards and loyalty programs, paying for quality is an investment that can yield substantial returns in the form of engaged employees, loyal members, and sustained growth.
Remember, you truly do get what you pay for, and in this case, the value is immeasurable.
To learn more about how BOOM’s fully managed employee and member rewards solution can help you increase engagement and retention, CLICK HERE.