Loyalty rewards your customers actually redeem
The average loyalty program has a 50%+ breakage rate — that's rewards earned but never redeemed. It's not that customers don't want the rewards. It's that redeeming them requires logging into a portal, checking a points balance, browsing redemption options, and going through checkout. Most customers never bother.
Text-based reward redemption removes every barrier. "You've earned a free [product]. Reply YES to claim." One reply, reward redeemed, product shipped.
14-day free trial | No contract | 500 free messaging credits
How most brands handle loyalty reward redemption
The typical flow: a customer earns points or reaches a reward threshold. They receive an email or text telling them they have a reward available — with a link to the loyalty portal. The customer has to click through, log in (if they remember their password), navigate to their rewards, browse redemption options, and go through a checkout flow to claim their reward.
This multi-step process is why breakage rates are so high. Customers who genuinely earned and deserve a reward never redeem it because the process is too cumbersome. For many customers, the reward notification goes to their email inbox and is never opened. For those who do open it, the portal login is where most give up.
The irony: loyalty programs are supposed to make customers feel valued. A redemption process that requires six steps to claim a free product does the opposite.
Reward redemption via text reply
With text-to-buy, reward redemption is a single reply. When a customer earns a reward, they receive a text: "You've earned a free [product]! Reply YES to claim — it's on us." The customer replies, the reward is redeemed, and the product ships. No portal, no login, no checkout.
This dramatically increases redemption rates, which increases the perceived value of your loyalty program. Customers who actually receive and use their rewards are more engaged, more loyal, and more likely to continue buying. A loyalty program with high redemption rates is a loyalty program that works.
For brands using rewards to drive specific behaviors (like trying a new product or reordering), text-based redemption ensures the reward actually achieves its purpose instead of sitting unclaimed in a portal.
Side-by-side comparison
| Aspect | Traditional | With AudienceTap |
|---|---|---|
| Redemption steps | Click link → log in → check balance → browse → checkout | Reply "YES" to the text |
| Typical breakage rate | 50%+ (rewards never redeemed) | Dramatically lower — one-reply redemption |
| Customer effort | Remember portal login, navigate options | Zero — reward delivered via text |
| Time to redeem | Minutes (if they complete it) | Seconds |
| Perceived program value | Low — customers forget they have rewards | High — rewards are instantly tangible |
Who this is for
Any brand with a loyalty or rewards program — especially those seeing low redemption rates. If customers earn rewards but rarely claim them, the problem is friction, not interest.
Features that make it work
Related use cases
SMS Product Drops & Limited-Edition Releases
Turn limited-edition releases into sold-out moments with reply-to-buy text drops.
SMS Welcome Series That Drives a First Purchase
Convert new subscribers into first-time buyers with a welcome flow that closes the sale inside the text.
SMS Referral Programs That Actually Convert
Turn customers into advocates with text-based referrals — both parties get rewarded automatically.
Related glossary terms
Text-to-Buy
Text-to-Buy is a mobile commerce model where customers purchase products by replying to a text message — no links, no carts, no checkout pages.
SMS Commerce
SMS Commerce is the practice of selling products directly through text message conversations — turning SMS from a marketing channel into a sales channel.
Customer Lifetime Value in SMS Commerce
Customer Lifetime Value (CLV) in SMS Commerce is the total revenue a business can expect from a customer over their entire relationship, measured through the text-based sales channel.
SMS VIP & Loyalty Rewards Redemption FAQ
No. AudienceTap handles the tracking. When a customer reaches a reward threshold, the redemption text is sent automatically. The customer doesn't need to check a portal or remember a balance.
Yes. Rewards can be free products, discounts on future purchases, exclusive access to drops, or any other perk you want to deliver through the text channel.
AudienceTap can work alongside your existing loyalty platform. The key change is the redemption channel — instead of sending customers to a portal, you send them a text they can act on instantly.
You're already budgeting for these rewards — customers just aren't claiming them. Higher redemption rates mean your loyalty program is actually working, driving the engagement and retention it was designed to create.
Ready to see if AudienceTap is right for you?
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