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Integrated vs. Specialist Loyalty Platforms: Navigating the Choice
When selecting a loyalty platform, businesses must make a critical decision: should they invest in a specialist loyalty platform or opt for an...
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How ASDA leveraged Eagle Eye's market-leading loyalty platform and expertise to launch 'ASDA Rewards', deployed just 3 months after project kick-off.
2 min read
Jonathan Reeve on 15 October, 2024
Since Eagle Eye joined forces with EagleAI (formerly Untie Nots) in 2023, I’ve been fortunate to learn about personalized challenge offers, a key element of EagleAI’s proposition. In this blog, I’ll explain three key reasons why challenge offers drive consumer engagement and how they deliver incremental value to a retailer's brand partners.
Challenge offers stand out by combining highly personalized experiences with a mass marketing message. Although each offer is tailored to individual preferences, the overarching message, such as Tesco’s "Collect up to £50 worth of Clubcard points," can be communicated at scale via digital channels, in-store promotions, and traditional advertising.
This wide visibility leads to impressive participation rates—often 5 to 10 times higher than traditional coupons. Despite the broad reach, each challenge feels personal and relevant to consumers, thereby balancing reach and individual relevance.
Challenge offers leverage the "goal gradient effect," a psychological principle where motivation increases as people get closer to achieving a goal. By encouraging consumers to reach specific targets—such as spending a certain amount over a set period—challenge offers turn shopping into a game, making it more interactive and engaging.
As consumers progress towards completing their challenges, the chase itself becomes more enjoyable, further motivating them to continue engaging with the offer.
Challenge offers tap into the concept of delayed gratification by asking consumers to complete actions over time before receiving a larger, cumulative reward. This delay builds anticipation, making the eventual reward feel more valuable.
By asking consumers to put effort into earning their rewards, retailers become associated with meaningful value. In many cases, the final reward makes a significant difference to the cost of the consumer’s shopping basket, further increasing the perceived value.
From a partner brand’s perspective, challenge offers drive incremental sales by encouraging consumers to change their behavior—whether that’s purchasing more frequently, trying new products, or increasing basket size. Instead of offering discounts on items consumers would have bought anyway, challenge offers generate new sales, providing a clear and measurable return on investment (ROI).
Brands benefit from the ability to influence consumer behavior in a measurable way, making challenge offers a smart strategy for both short-term campaigns and long-term growth.
Challenge offers are already making a measurable impact at leading global retailers such as Carrefour, E.Leclerc, and Tesco. If you’re a forward-thinking retailer interested in harnessing the power of this highly effective strategy, please reach out to explore how challenge offers can transform customer engagement and drive incremental value for your business.
Vice President - APAC
With nearly three decades of experience, Jonathan is a seasoned expert in the retail industry, collaborating with retailers worldwide to ensure they remain at the forefront of digital innovation. After successfully operating his own consulting business for five years and authoring the influential book, "Retail's Last Mile: Why Online Shopping Will Exceed Our Wildest Predictions", Jonathan is now the Vice President for the Asia Pacific region at Eagle Eye, a SaaS technology company transforming marketing through real-time personalised performance marketing. In this role, he helps APAC businesses develop and implement world-leading digital marketing programs that drive customer acquisition, interaction and retention.
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Plus, enter to win the 2nd edition of Omnichannel Retail by Tim Mason & Sarah Jarvis!
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