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6 Quick Tips to Increase Loyalty Program Participation

Customer Loyalty Numbers

  • Consumers belong to an average of 13.4 loyalty programs but are active in only 6.7 programs.
  • Only 23% of consumers say they are satisfied with how points can be earned in the loyalty programs they are members of.
  • 40% of consumers that don’t use their loyalty card say it is because they forget they are a part of the program.
  • 47% loyalty program members are receiving relevant and timely information on their channel of preference.
  • 81% of consumers are more likely to continue doing business with brands that offer loyalty programs.


The Ultimate Cheat Sheet for Turning Passive Members into Profitable, Loyal Customers

Loyalty programs are an awesome tool for retaining customers and getting new customers. The problem is that many of those customers lie dormant and do not participate in the loyalty programs once they enroll. One of the goals of implementing the loyalty rewards program is increasing sales. If that’s not happening, then your business is missing half of the action. Recent studies have produced dismal statistics when it comes to loyalty program participation. Consumers belong to an average of more than 13 programs, but they are only active in 6.7 of the programs that they enter. The following are some tips that you can use to increase the participating levels of your customers so that you can turn over additional profits:

1. Simplify the Process

One of the most common reasons that customers do not participate in the loyalty rewards programs is that the process is too complex. Many customers are on the go, and they do not want to sign up for things, pull out cards or visit a kiosk to get a special ticket to get a discount. Some customers dislike long processes so much that they would forfeit their rewards rather than perform additional tasks. The program processes should have as few steps as possible.

2. Explain the System

Having the sales team explain the process thoroughly is an excellent way to boost productivity. Many loyalty program members do not have knowledge of the way the program works, so they lose interest in participating. Have the team members check on them and see if they have any questions about the program once they sign up for it. They are highly likely to use their cards more if they realize all they can receive from using them.

3. Implement Immediate Gratification

We live in the age of immediate gratification. Therefore, members want to get their rewards quickly. People are likely to stop participating if they feel as if their goal is too difficult to attain. A person is not going to bother shopping to obtain a 50,000-point free cup of coffee if the program only awards 1 point for every $100 spent, for example. Make the point system reasonable and proportionate, and make it easy for the consumers to see their progress. Showing their point totals on a receipt is a good way to let them know how close they are to the rewards that they desire.

4. Offer Incentives

You can initiate a special promotion with a huge incentive every once in a while. For example, you may want to give the members a chance to win a new tablet or something along those lines. That will boost participation immensely.

5. Make Them Feel Special

Program participants want to feel as if they are a part of a special class of people. They don’t want to feel like they have the same opportunities as all the other shoppers have. You can help them to feel special by giving them coupons, cash back, free items and the like. The program must be worthwhile to a customer for that person to participate in it.

6. Perform Analysis

Always track the program participants and conduct surveys to find out what works and what does not work. That way, you can tailor the program to meet your customers’ needs. Surveys can help you see the big picture of your loyalty program’s success. You can request participation in the survey via a discount offer. Many merchants are doing that.

You should have significant success using the above tips and strategies. You can expand on each of the suggested customer loyalty strategies and tailor it to your industry.