Is Your Loyalty Program In A Rut?

The objective of any loyalty program is to establish long-term relationships with customers so that they count on the program as they would a trusted friend. New loyalty programs should grow steadily over the first two years, while a mature program should generate inquiries at a monthly rate of 4 to 5 percent. When participation begins to decline, the most common cause is the loss of creative focus on the program. It's also common for newly launched programs to settle into a rut of self-imposed sameness. Both of these afflictions are easy to fix, with a little creative energy. Simply set as your goal the creation of some kind of surprise value-added offer for at least one segment of your membership base each quarter. Surprise, meaning something different in style and substance from anything you've already done. If ROI begins to slip, tackle the benefits structure with fresh eyes and open ears. Talk to members. Ask them what they like and dislike about the program, and what kinds of recognition and reward they wish for.