When your loyalty program isn’t performing at its best, it can frustrate customers and even threaten your reputation. Even a small change or misstep might generate backlash among your loyalty members, resulting in a negative perception of not just the program, but your brand in general.
Unfortunately, the signs of an under-the-weather loyalty program usually are rarely obvious. They’re subtle trends that progress over time, and, when left unattended, can lead to serious long-term issues.
To ensure your loyalty program stays healthy, you’ve got to catch potential problems before they worsen by routinely checking for these telltale symptoms.
Registration has slowed or stalled
Have you experienced a significant reduction in program sign-ups? Has the number of new members steadily gone down over time? While you’ll have to dig deep into your program’s data to find the root cause, keep in mind that according to research from MIT Sloan, earning points and discounts are the top loyalty program motivators for consumers — so if they’re not getting them, they’ll likely tune out or look elsewhere.
Members are stagnant and inactive
Only about half of members enrolled in loyalty programs are active according to MIT Sloan.
If your engagement rate is low, it could be a sign that you’ve stopped providing value to your customers. Your program might not be user friendly; offers and promotions could be irrelevant or provide little value; or perhaps you are over- or under-communicating with your audience.
No noticeable revenue increase
The end goal for a loyalty program is just that: loyalty. Committed customers drive repeat purchases and profit for your brand. You may be seeing engagement through your marketing channels and loyalty program, but if it’s not encouraging transactions, there’s no ROI. The underlying issue here could be that points are too difficult to earn or it takes too long to redeem them for a reward. Again, looking into the data could help provide a diagnosis.
If you notice one or more of these symptoms, don’t panic. There are ways to mitigate and treat them before your loyalty program is too ill to recover:
- Make it easy to join and a breeze to access through multiple channels. No one likes a 12-step sign-up process or digging through their email to find the right link.
- Keep the structure simple and be clear about how members can earn points and claim rewards.
- Create a personal experience for every user through detailed segmentation that helps you deliver customized offers and rewards to the right place, at the right time.
- Ask your customers what they want. Survey existing members or cast a wide net to get a non-member perspective on your program. This simple step can help get your program back on track.
Win over your customers with a loyalty program that rewards them for more than just transactions. Celebrate their interests, brand activity, and engagements through a healthy and long-lasting loyalty program with Cheetah Digital today.
Cheetah Digital is a cross-channel customer engagement solution provider for the modern marketer. The Cheetah Digital Customer Engagement Suite enables marketers to drive revenue, build lasting customer relationships, and deliver a unique value exchange throughout the entire customer lifecycle. We are a business partner to the world’s best brands and have employees across 13 countries.