What makes a customer loyalty program succeed?

1. How does a customer loyalty program work?

2. To understand how, we must first understand why.
Why do businesses want loyalty programs?

3. Why?
• To retain curren customers and channel partners
• To set themselves apart from the competition
• To motivate customers to perform long-term or
short-term tasks

4. Bonus benefits of
customer loyalty
programs:
• Increased brand reputation
• Increased brand awareness
• Better customer experience
• Promoted brand values

5. How do they acutally work?
How do customer loyalty programs accomplish all this?

6. How?
1. Program participants see
an opportunity to earn
something.
Does the reward appeal to them? Different
demographics have different interests and priorities.
When determining which rewards people want, keep into
consideration their:
• Generation (Baby Boomers, Millennials, etc.)
• Role (Where are they in life/career?)
• Culture (What is their lifestyle?)

7. Generation

8. Role

9. CUlture

10. How?
2. participants alter their
behavior to earn a reward.
Some common rewards offered to participants:
• Online reward points redeemable for merchandise in
an online rewards catalog
• Recognition/praise
• Cash - CAUTION (see next slide!)
• Gift or debit cards
• Event or trip

11. Participants either see value in the reward and are motivated to earn
the reward again, or they don’t see the value.
How to make sure it’s the former, not the latter:
Offer non-cash rewards
People unconsciously prefer non-cash rewards
even if they say they prefer cash.
Don’t offer the same rewards every time.
Separating rewards into categories increases
participants’ effort - they don’t want to miss out.
Deliver the reward the right way.
The perfect reward poorly presented would have
half the impact.

12. How?
To function in the long-term, the loyalty program must:
• Have objectives and goals tied to your organizational
objectives
• Have clear, consistent rules
• Deliver regular information and updates to
participants through the right communication
channels
• Feature reports and analytics to help determine the
program’s effectiveness
3. the loyalty program has a
system.

13. 1. Program participants see an
opportunity to earn something.
The reward appeals to their unique personality and interests.
2. participants alter their behavior
to earn a reward.
They see value in the reward and want to earn it again.
3. the loyalty program has a system.
WIth proper participant communication, clearly laid-out
rules, and measurement of the program’s success, it operates
effectively.
Add it all up and what do
you get?
A loyalty program that works!

14. 800.844.5000
2299 Perimeter Park Drive, Ste 150
Atlanta, GA 30341
http://www.loyaltyworks.com/