Sound the alarm: Is your customer loyalty platform costing you customers?

By: Sarah VanDerHart

What you need to know

  • Programs that reward customer behaviors vs. only spend are improving the overall customer experience. 
  • Investing in updating your customer loyalty platform and program increases loyalty and repeat purchases. 
  • A successful customer loyalty program contains six key components to build stronger, long-lasting relationships.


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Chances are if it’s been a few years since you’ve made changes, your customer loyalty platform needs an update to avoid (or stop) customers from running the other direction.

New customer behaviors and demands have evolved beyond the typical transaction-based programs and instead lean more toward programs that reward customer behaviors rather than spend alone. 

Upgrading your platform requires time, effort and resources to pull off. Done well, a platform migration (and the program upgrades) can significantly impact your bottom line and improve the customer experience. But how do you know if it’s the right time to invest in a change?

84% of companies that improve their customer experience report an increase in revenue. —Forbes

Signs your customer loyalty program needs a refresh

If your program is experiencing two or more of these challenges, it’s time to make a change.  

1. Your loyalty program hasn’t changed in 3+ years

It’s important for your customer loyalty program to evolve with your members’ needs. 

2. Your current program is all about the transaction

Customers become more loyal when they feel an emotional connection to the brand. Invest in the customer experience throughout the program life cycle. 

3. Program personalization doesn’t go beyond the basics

Data can add a personal touch to help your customers feel more valued.

4. Making changes is expensive or difficult

Customer expectations and the market change quickly. Platforms that are built to continuously adapt will give you better results. 

5. You’re struggling to measure (or deliver) ROI

Being able to show stakeholders the value of your loyalty program is essential. 

6. Your promotions are hard to update and require manual workarounds

Reduce team frustration and give them back valuable time with a platform that allows automation

7. You and your team spend less time using the platform

A great loyalty platform enables marketing and sales efforts, making it easy to create new promotions, make changes or see how the program drives value.

8. Your current agency isn’t delivering 

Choosing a partner that’s in tune with the changing market needs will help your loyalty program grow.

Related: Replatforming a Customer Loyalty Program Drove Engagement & Greater Loyalty

How to start upgrading your loyalty program

If you determine (based on your answers to the challenges above) that the time is right, updating your platform will strengthen loyalty and increase repeat purchases among your customers as well as save your team time and frustration. Keep the following 6 six components of a successful end-to-end customer loyalty program in mind as you start planning your migration to a new platform. 

1. Program strategy and design

Want a strong loyalty program? Start by understanding your brand goals and customer base, then customize a program based on those insights.

Related: Learn how a global media/technology operation reimagined its customer incentive to achieve better results. 

2. Customer loyalty platform

At the bare minimum, you should have a 360-degree view of your customers to determine who you’ll engage next, when and with what message. In addition to running efficient promotions and effective reporting, a robust loyalty platform enables:

  • Loyalty management
  • Segmentation and tiering
  • Member profiling
  • Strategic communications
  • Awards and experiences
  • Reporting and measurement

3. Program operations

An end-to-end program makes administrative needs much easier. Successful loyalty programs collect and track zero-party data so you can make confident decisions. Ensure your program flags changes in customer sentiment so you can easily set up new promotions and offers—personalized to the audience (and specific individuals).

4. Creative services

Out with bogging down customers’ inboxes with constant promotional emails. In with beyond-digital, breakthrough customer experiences that build trust, increase market share, generate stronger ROI and improve customer loyalty.

Related: How surprise-and-delight marketing builds stronger customer loyalty

5. Awards

Your customers demand personalization. Show them you’ll meet their needs with a flexible award solution that motivates and incents them to change behavior.

6. Analytics and optimization

Customers’ needs are always evolving—and quickly. Real-time performance insights constantly show how your loyalty program is doing and where you need to evolve to stay relevant. Those same insights inform your decision-making about budget allocation, future promotions and more.

Build stronger relationships with an end-to-end customer loyalty program

Upgrading just your loyalty platform will make some difference. But to see an increase in efficiency and incremental growth (and make the platform investment worth it), a shift in focus on all six components of a loyalty program will help you form stronger connections with your customers at all points on the buyer’s journey.  

Silence the alarm bells and learn more about how to improve your program or contact us with any questions. 

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Sarah VanDerHart
Sarah VanDerHart

With over 12 years of experiential marketing and strategy experience, Sarah serves as the Customer Solutions Insights and Strategy Leader. As a leader of award-winning marketing teams, she thrives on delivering results-driven strategies that align with market trends to build emotional connections between customers and brands. Outside of work, you'll find her hosting a fun gathering with friends, running around with her husband and their two young daughters, or cheering on the Iowa State Cyclones!