Is your customer loyalty program working?
While making it easy to participate in a program is essential, the most important aspect of a loyalty program is the value it delivers. Customers are generally drawn to a wide range of benefits,
ranging from utilitarian (savings) to symbolic (recognition). That could look like:
- Variety of rewards
- Exclusive rewards
- Eared discounts
- Exclusive promotions or offers
- Offers that go beyond point-of-sale discounts
The study uncovered that the importance of perceived value over effort is true across all industries. Even when a program minimizes the amount of effort required by a participant, it’s usually not enough to have an impact if the benefit-to-burden ratio is off. If a program’s ratio is right for its industry, the brand will build up loyal customers who are more likely to turn into brand advocates.