As I continue on the quest to improve the long-term value and viability of loyalty programs, I am always seeking to understand member motivations and barriers preventing a thriving loyalty program.
The three intersecting ingredients for a thriving loyalty program are (yes, there is a powerful venn diagram to support this):
- Meaningful and desirable to members
- Profitable and sustainable for the brand
- With belief and buy-in by the team
All enabled by fit-for-purpose technology, data driven insights for action and dynamic personalised member dialogue.
While this is a view from the balcony, diving onto the dance floor and the detail of making programs thrive, one starting point is to identify and then solve the concerns loyalty program members have with programs.
The list of concerns researched in the For Love or Money™ 2022 customer loyalty and loyalty program study are not exhaustive, however do give some insights on where to start solving for these.
The eight concerns researched (they were randomised) asking members to rank up to three, were:
- Lack of clarity about how the program works
- Knowing how my data is used
- The effort required to earn rewards
- Knowing how secure the data is
- The lack of value given the effort to achieve the rewards
- The expiry of my points or rewards
- Insufficient notice on when my points or rewards expire
- The complexity of joining and interacting with a program
The top 3 ranked concerns members have about loyalty programs as revealed in For Love or Money™ 2022 study are:
- The effort required to earn rewards (earn-rate)
- The lack of value given the effort to achieve the rewards (value vs effort)
- The expiry of my points or rewards (expiry)
What’s the point?
Achievability (earn-rate) and desirability (value vs effort) are two critical ingredients to a thriving loyalty program. And, yes 'expiry' of points or rewards are always on the minds of members!
While solutions to these concerns are varied and based on the program proposition, knowing the concerns loyalty program members have with programs is a useful basis to set in motion solutions for these and continue to ensure loyalty programs thrive.
What’s the action?
Take the first step and ask your loyalty program members what their concerns are with your program.
The comprehensive For Love or Money™ 2022 report goes deeper on the eight concerns and results by gender and generations as well as the changes since the same question was researched in the 2020 For Love or Money™ study.
Have a happy loyalty day!
