It's always a good idea to revisit your loyalty program structure and perks to answer this question: "Is this program still relevant and exciting for my customers?". Because customer preferences change, and customer demographics shift, you'll want to ensure you're always relevant to your audience. If you don't know what your customers want, just ask them! A simple survey with just a few key questions can help you identify what they love about your program and what they would like to see in the future. A customer loyalty survey by COLLOQUY reveals the top reasons customers engage with loyalty programs and also why they may stop participating.
The Two biggest reasons members continue to participate in loyalty programs:
1. The program is easy to understand (87%)*
Ensure your program's structure is easy to follow so customers clearly understand how to earn points and what rewards they can redeem. Try to keep rules simple so customers don't become frustrated.
2. The rewards/offers are relevant (75%)*
Ensure you're offering some great perks that your customers actually want. Exclusive rewards are more enticing where the customer can eventually earn something that they cannot buy such as a VIP invite to a special in-store event, or free coffee for a year.
The main reasons loyalty members stop participating:
1. Did not provide rewards/offers that interest me (56%)*
If there is little incentive for customers to participate, they'll stop caring about earning points and engagement will fall off. If you're not sure what type of rewards your customers want to see, just ask them in a brief survey. They'll be happy to tell you what they want and impressed to know that their feedback is making a difference in the program.
2. Too hard to earn points for rewards (54%)*
If your reward items are not attainable, customers will lose interest. If they shop with you regularly but it takes them a year to earn a $2 coupon, the program will lose value for them.
***92% of program members described their participation as either "fun" or "economical".
Does your program fit into one of these categories - or both? Keep communication open with your customers and you'll receive great feedback about what they like and what they would love to see from your program!
*Stats from "Customer Loyalty in 2015 & Beyond" - Colloquy
While your customers may love your rewards program, they still need to receive a positive overall experience with your business/brand consistently to make the relationship work. Your loyalty program should complement your customer experience, not try to replace it.
Check your reports to identify which rewards your customers love the most. If you’re thinking about adding some different reward items but are unsure what to offer, ask your loyalty members through a quick survey. They’ll be happy to provide insight to help further tailor their rewards program to their preferences. Don’t forget to add special perks that are only attainable to your loyal members through the program. How is your program different from your competitors? Try to revisit your program regularly to ensure it’s unique, fresh, and exciting for your VIPs. Showcase your top members monthly on your website or social channels and think about other ways you can engage them and make them feel special.
Here are a few must-haves when trying to ensure a great customer experience: