With the myriad amount of loyalty programs out there, marketers are facing problems generating and retaining members. There are now more loyalty programs spanning numerous industries then ever before. Many shoppers are signed up for numerous programs, and out of 18 programs, most will only participate in 8 (Colloquy). There is concern that because of this, shoppers are focusing on how to game the system instead of being actual loyal customers. This problem is opening up marketer’s eyes to re-accessing the quality of their programs. FastCompany.com has put together a list of some strategies marketers can apply to keep their loyalty program fresh and enticing.
1) Play Favorites – You want to be THE loyalty program people choose. In that quote of 18 programs, you want to be their number 1 most used. In order to do this, you have to use metrics and some investigating to offer rewards correlating to what your customers like to do. For example, if your customer likes to do outdoorsy things, perhaps offer rewards related to camping stores, equipment, and travel. If your customer flies frequently, obviously you want want to gear your program towards flight mileage.
2) Avoid Stark Policies – This one is easy, don’t make your customers turn against you by doing things quickly without them knowing. For example, do not take away their points through expiration or devalue their points. Instead, help your customers get the best out of their program.
3) Partner up – Very straightforward, find partners with your loyalty program to ensure rapid visibility and flexibility. People are more likely to use a program that pairs gas and flight mileage over just gas.
4) Don’t make ties impossible – No one wants to join a program that has multiple loyalty tiers only to find out they can’t get out of the bottom level. Make the goals for climbing up the tier ladder clear-cut, attainable, and well explained.
5) Keep in contact – Make it easy for your customer to track and analyze their program points, and keep in contact. The more you interact with them the more they will be interested in using your program.
Through these strategies your loyalty program should be able to set itself above the rest and most likely keep more customers.