3 Tips to Keep Loyalty Program Members Engaged

by Danielle Brown on Oct 24, 2016 12:00:00 AM DRTV, e-Commerce, Consumer Behavior, Retail

3 Tips to Keep Loyalty Program Members Engaged-488734-edited.jpgThere are some eye-opening stats out there about loyalty program engagement: Consumers on average are enrolled in 29 loyalty programs, yet are only active in 12. Six out of 10 customers believe that companies only offer rewards programs to get them to buy more. And 74 percent of U.S. retailers reveal that customer engagement is their number one concern.

These statistics, and many more like them, are a testament to the fact that consumers are finding it hard to manage the growing list of loyalty programs they’re enrolled in. And at the same time, it shows how brands are struggling to keep their once-active members engaged. With competition continuing to grow across all industries—from retail, to hospitality and travel—brands must not only meet consumers’ expectations, but provide value for their members which helps to stand out among the rest.

In light of these insights and challenges, here's a roundup of how brands can increase value and drive further engagement among their loyalty program members:

Provide choice and flexibility.

With consumers demanding more ways to earn and spend their loyalty points, miles and rewards, brands should cater to the needs of their consumers by expanding earning and redemption opportunities outside of their own programs. Cater to the needs of your program members by providing choice and flexibility the how they interact with their rewards. Consider partnering with other loyalty programs outside of your own brand to allow cross-industry earning and redemption opportunities. You’ll not only increase your share of your customer’s wallet, you’ll boost the value of your program, and increase the likelihood of a repeat purchase and increase engagement among program members.

Dig into loyalty program data.

Loyalty programs are no longer a one-size-fits-all solution. Consumers are not only demanding more ways to earn and burn their loyalty currencies, but they’re also searching for loyalty offerings that are most relevant to them. The key to driving customer engagement is delivering the right offer, to the right customer, at the right time. First, do your research to fully understand what kinds of loyalty rewards your members are looking for, and which offerings they find most valuable. Tap into CRM and loyalty data to better define and target your members, and figure out their needs. Then, after finding out what makes your members tick, you’ll be able to craft the right deal to deliver at the right moment. In the end, you’ll drive both positive consumer behavior and incremental revenue within your program.

Keep members within your ecosystem.

When it comes to managing and interacting with their points and miles, today’s consumers demand convenience. The better (and easier) the user experience, the more likely you are to consistently win customers’ business. Member engagement and user satisfaction go hand-in-hand with keeping members within your ecosystem. Give your members the means to earn and burn their loyalty rewards not only within your brand, but also with others, all in one place. Instead of your consumers needing to use another site to find the best deal, keep members and customers within your ecosystem by providing a platform that caters to all of their loyalty needs. Additionally, design the framework of your loyalty platform to include seamless sign-on capabilities, deep linking, and access to loyalty offerings within one platform. By answering the call to your consumers’ demand for convenience and consistency, you’re sure to have your loyalty members coming back for more.

Photo by Chaiwat/FreeDigitalPhotos.net

Danielle Brown is VP of Marketing at Points.

Danielle Brown's blog
New Call-to-action
Subscribe for tips on how to grow your direct response marketing business!
Subscribe Now

Follow Us

New Call-to-action

Editorial Disclaimer

The statements, opinions, and advertisements expressed on the ERA Blog and other online entities owned by the Electronic Retailing Association are those of individual authors and companies and do not necessarily reflect the views of the Electronic Retailing Association.