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Overcome Poor Loyalty Program Performance


Is it Time to Update Your Loyalty Program?

We know how it is. You’ve launched your customer loyalty program and watched it go through ups and downs and now you’re at a crossroads. Where do you go from here? There are many paths you can take to overcome poor results and engage members. The good news is that the potential is there, waiting to be tapped. By auditing your loyalty program, you can fortify your value proposition, build loyalty, differentiate yourself from the competition while increasing customer share, and improving bottom line results. Reviewing the tips below can be your first stop on a new route to success.

Grow Enrollment

  • Only require and gather customer information that you plan on using.
  • One easy way to entice more customers to join your program is offer them an incentive at enrollment.
  • Don’t just focus on adding members. To get results, you need member participation. Create a customer development process to engage and grow the value of new members.

Educate and Reward Employees

  • Make it easy for your staff to talk about the benefits of the loyalty program by giving them a script.
  • Make sure your employees know the benefits of your loyalty program and that they don’t keep it a secret.
  • Enrollment in your loyalty program lagging? Create an employee contest to see who can enroll the most new customers.
  • Participation and enrollment lagging. Secret shop your loyalty program to see if there are training issues.
  • Consider implementing a minimum loyalty program enrollment requirement for employees and make it a component of their employee evaluation.
  • Create an Internal Communications plan so all stakeholders and employees knows how why the program is important.

Dig Deeper

  • Analyze earning rates by customer segments to understand engagement of your target segments.
  • Have you analyzed your reward program redemption rates? Who redeems? What do they buy? Sometimes your rewards seem out of reach and customers become disengaged.
  • Loyalty program metrics need to include a dashboard of customer, campaign, program across channels, and employee performance.
  • Do you know which customers earn the rewards and are not redeeming. Do you have a plan to engage them?
  • Further define your segmentation to better allocate discounts, rewards, benefits and communications to achieve customer behavior change based on your business objectives.

Upgrade Value Proposition

  • Have you diluted your value proposition so that your customers don’t feel valued? Customers will carry your loyalty card if your customers see value in the program and if they are engaged in your brand. Maybe its time to revaluate how you reward and grow your best customers.
  • You need a mix of hard and soft benefits. Hard benefits reinforce value and soft benefits build emotional connection.
  • Enhance your loyalty program by tailoring soft benefits to resonate with key growth and retention customer segments.
  • Tier your loyalty program so customers a reason to give you a greater share of wallet and loyalty.
  • Clarify the customers’ wants and needs. Research customers’ impressions of the current loyalty program, how it impacts their shopping behavior and which benefits drive behavior.
  • Deepen customer engagement by giving customers more to love through evaluation and prioritization of your unique value proposition.


  • Include social networks in your customer communications plan. Loyal customers are your best advocates.
  • It’s essential to equip your employees with current customer data. Share customer insights across the organization and include a dashboard of results at the program, customer and employee level.
  • Develop customer-segment driven communications to retain and grow customer lifetime value.
  • Listen to social chatter. Conduct searches on social sites to see what your customers are saying and how they really feel about your loyalty program.
  • Synchronize messages to grow share of customer purchase through relevant cross-sell; upsell meeting more of the customer’s needs.

Screen-shot-2014-01-08-at-3.40.01-PM (1)Audit Your Loyalty Program

Need help mapping your way to improved ROI? Call Customer Insight Group today at 303.422.9758 to learn how we can help enhance your loyalty program to boost customer relevance, build loyalty and dominate market share.