Through a special arrangement, what follows is a summary of an article from COLLOQUY, provider of loyalty-marketing publishing, education and research since 1990.
For most loyalty programs, birthday rewards have become as common as free pretzels on a plane.
With the greater frequency, customers can now easily contrast and compare the special gifts delivered by various merchants during his or her birthday month. As a result, several inventive brands are reimagining the concept of the birthday reward to their competitive advantage, some looking even beyond birthdays.
Here are several examples of special-occasion rewards that take the cake:
Surprise parties: With a list of customer preferences and favorite things (attained through annual surveys), a loyalty program can surprise with unexpected items, from chocolates to movie tickets. Kimpton Karma, for example, gives members 20 percent off on stays during birthday months and then surprises them with gifts based on the favorite things they list in their profiles. It's important to make it clear to members that the information they provide may be used to surprise them later on.
Half-birthday rewards: CityGro, a Salt Lake City-based loyalty-marketing firm, launched such a campaign at Utah State University, offering free pretzels to student members on their half birthdays. The occasion is more likely to resonate with younger consumers. Said Jon Parrish, CEO of CityGro, "People don't even realize it's their half birthday. So it really gives them a reason to celebrate and to create some buzz."
Go beyond birthdays: Relatedly, some marketers look to other special occasions to thank their members. Celebrating its own anniversary in 2014, Hertz Gold Plus Rewards surprised European members with luxury upgrades, offered U.S. members double points on weekly rentals and surprised members with other small gifts, including chocolates, flowers or books, depending on the country. Kellogg's Family Rewards offers its members up to 1,600 bonus points for purchases made around St. Patrick's Day (March 17-20). It is also planning bonus offers around Cinco de Mayo and Thanksgiving.
Go big: Oftentimes, the best-received perks are those that stand apart merely for their generosity. This does not mean the merchant has to burn the margins, however. The cosmetic company, Smashbox, for example, offers its Pretty Points members free full-size products on the months of their birthdays. (This year, the gift is a full-size Full Exposure Mascara, worth about $20.) But to get that gift, members must spend $35 in their birthday months, encouraging more visits and purchases.