Question: What would January be without the hope for a refreshed loyalty program?
Answer: December with an increase in new member signups (soon to be zombies) and a rush on redemptions (financials look scary).
(I am sure there are many more answers, however I’ll stick with those)
It’s about this time of year when those brands with a loyalty program reflect on the past with hopes for it to rise up in the future.
Past realities (in no priority – not exhaustive):
- Stale program proposition (it’s not been tweaked, reviewed or revamped for some time, redemption is sliding – (Redemption is Retention) and the proposition has been all about the money, you forgot the 8 other currencies members care about)
- Hooray (not) for vanity metrics (so many new members and members spend more than non-members….aaaaagh)
- Member experience leaves a COLO (cost of lost opportunity)
- Program profit is thin (if known at all)
- Team is tired – especially customer facing in retail (love for the program has been lost and they are not asking at POS “are you a member?”)
- Technology not fit-for-purpose (that old chestnut)
Hopes for the future (now in a hurry – not exhaustive)
- Shine up the program proposition (look for levers from the brand promise, the changing and cluttered landscape, member experience expectations and more Joyalty* Moments of Magic (J*MoMs)…please!)
- Define and align on metrics that matter (I have five to focus on – see below, what are yours?)
- Build out a three-year robust and dynamic financial model (finally add some rigour to the revenue less the costs)
- Revitalise team belief and buy-in (see 5 x E process in Team Zone below)
- Validate if your technology is fit-for-future (or sweat the assets you have)
If any of the past realities punch you in the face (sponsored by Mike Tyson’s – “Everyone has a plan ’til they get punched in the mouth”) or if the hopes for the future light your flame of fortune, then consider a review of your loyalty program.
Our Wheel of Loyalty Program Fortune© and the seven zones of loyalty program performance, is our proven framework giving you the zones (and a few prompts) to consider as you light the flame of loyalty program fortune in 2026.
Business Zone
- Do you have a program vision?
- What’s your north star goal and accountability goals?
- Metrics that matter (where are the red/orange/green lights above the line and nuances below the line across value segments and profiles)
- Growth (net)
- Activity (as you define it)
- Revenue (variables including ATV, LTV) and popular metric – program sales as % of total sales)
- Advocacy (measure of love for your program)
- Profit (net incremental)
Member Zone
- Behaviour change and value segments changing (lift and shift the ‘lights’ ie full of potential and retain the ‘heavies’ ie potentially full)
- What’s their love for the program (Belief) and Sense of Belonging (ask research)
Program Zone
- Does your program solve problems in the world around us, in your customer’s life and/or in their experience with your brand?
- Nine currencies of collection members care about (current vs new) and do you have a planned spontaneity budget = J*MoMs
- Is your program experience SPV (Simple, Personal, Valuable)
Profitability Zone
- Do you have a robust and dynamic financial modelling framework to show changes in profit and loss, cashflow and balance sheet when you change any inputs?
Technology and data zone
- Is your technology fit-for-purpose (now) vs fit-for-future?
- Is your data governance across privacy, security and transparency up to standard?
Dialogue Zone
- How are the lifecycle communications performing, especially those moments that matter eg close to reward redemption, on redemption, and post redemption
- Is personalisation (however you define it) delivering the engagement it deserves or is it just hype?
Team Zone
- What’s your focus across the 5 x E process (Enroll, Educate, Expect, Excite, Empower) for building a Team of Loyalty Program Champions – a program that is owned everywhere (with different levels), not parked somewhere.
NOTES
- The above is not an exhaustive health check (I have a 56-point diagnostic that is more robust and revealing)
- Consider a bespoke member research study based on benchmarking your members vs the wider landscape (For Love or MoneyTM) – a very powerful and beneficial option.
My wish is for your loyalty program to rise and shine in 2026 ….
“long may it be profitable for your business, meaningful and desirable for your members with belief and buy-in by your team”
Have a happier 2026 (than 2025)
