Online Rewards has argued for a more personalized reward catalog as an alternative to competing solely on cashback rates. Its March 2022 article presents the idea as a loyalty design strategy, focusing on the relevance of the reward to an individual customer.

The company’s criticism of a rate-led approach is commercial: when customers compare only the percentage returned, a competitor can attempt to win attention by offering a slightly higher amount. Online Rewards suggests changing the basis of comparison by offering choices with personal significance.

Its examples include catalog selections linked to a new child, a first home or other life circumstances. Rather than selecting one item for everyone, a business can present a range of merchandise suited to the audience and allow recipients to decide.

The article describes technology that combines products from multiple suppliers into curated catalogs. Segmentation and customer information then influence which rewards are presented and how the offer is communicated.

Online Rewards positions its catalog capabilities as a way to assemble and present these targeted selections, using customer information to make reward offers more relevant.

For loyalty buyers, the distinction is between a reward’s stated monetary amount and its perceived usefulness or appeal. Online Rewards’ view is that both deserve consideration when designing a program intended to encourage a continuing customer relationship.