There is no better time to think of a few ways to improve a loyalty program than right now. A well run rewards program should constantly evolve as the business learns about its customers and implements the necessary changes to grow the program.
It is clear that consumers expect choice and flexibility. Companies that listen to their members will reap the benefits that come with engagement and retention. In this piece we explore some guidelines to consider while contemplating program enhancements.
Focus on user experience
A better rewards catalog user experience will drive higher rewards redemption, which will in turn increase engagement. The first step to optimizing your rewards catalog user experience is to track the right data. We believe the most important metric to consider is the ‘visit to order’ conversion rate (rewards orders / catalog visits). When making UX changes, monitor this rate while trying to keep all else constant. If it improves, push the changes further. If not, you may need to go back to the drawing board.
Diversify your reward offering
Regularly adding new rewards to your catalog will keep your members excited and engaged. A quick way to add a structured rotation of new rewards would be to add seasonal catalogs with time sensitive rewards offers or discounts. A few popular options include Valentines Day, Spring Clean Up, Summer Vacation, Back to School and a Holiday Gift Guide.
Adapt your catalog based on redemption data
The old adage of ‘less is more’ can certainly be applied to some of the massive rewards catalogs being offered to members. We recommend regularly assessing the popularity of rewards and removing the ones that are clearly underperforming. Just because you can offer your members a reward, it doesn’t mean you should.
Get your members to their first redemption quicker
It is undisputed that a member is more engaged and loyal after they experience their first rewards redemption. With that in mind, help them get there quicker with sign-up bonuses, new member challenges and micro-redemption options.
Regardless of what changes you decided to make, we are confident they will be successful as long as you test, tweak, rinse and repeat.