Your Program Foundation Needs Attention

Looks like your loyalty program isn’t performing well. Perhaps your program is new, or you haven’t had a chance to optimize it yet. Regardless of the reason, you should spend time improving several areas to ensure your program operates profitably. You should expect to reach positive ROI from the program in 12-24 months. The way your program operates now suggests you won’t reach that goal.

Benchmark KPIs to Measure

  • 50%+ Penetration Rate 
  • 25%+ Increase in AOV 
  • 10%+ YOY Membership Growth 
  • 75%+ Annual Active Membership Rate 
  • <5% Annual Churn Rate 

Invest in Improvements Across the Board

Make sure you’ve identified what’s important to you as part of your loyalty strategy. Here is a framework to ensure all aspects of your member lifecycle are optimized for success.


Are your loyalty program marketing plans integrated into your overall business and marketing strategy? If not, they should be. Many brands run separate loyalty marketing plans, which compete for resources and create a fragmented experience. This can unintentionally reduce membership growth. Ensure you have infused opportunities to join the program across all channels and throughout your customer experience for best results.


How many questions are in your enrollment form? Are you using all the data you collect? If you don’t have an immediate plan to use the data, don’t ask for it. Enrollment should be quick and easy but also give the right first impression. Explain how you’ll use the data you ask for, ensuring new members understand the value they’ll receive.


Do you include program education alongside sales offers as part of your onboarding process? Teach members how to engage and benefit from the program. Create a unified experience by including program education, easy ways to earn, and redemption ideas in all channels. Educate your staff too; front-line associates can be the best advocates.


Provide continuous ways for members to engage with the program through regular communication. Offer easy-to-complete special offers and celebrate milestones. Gather feedback through surveys and forums and use this data to optimize the program. Ensure your rewards are dynamic and offer the appropriate level of value exchange.


Special offers don’t need to be costly if you recognize members meaningfully. Personalize offers and communications to the best of your ability. Your level of personalization doesn’t have to be 1-to-1 or real-time initially but should be targeted and tailored as best you can. Set expectations and build towards 1-to-1 over time.


Make sure to provide a consistent sense of value as part of your program. Engage members long term by introducing enticing rewards such as exclusive offers, gamification, tiered rewards and special privileges. Give your members a reason to come back again and again.


Poor member experiences and lapsed activity create churn risk. Each scenario needs its own plan. Invest in offers or experiences to regain member attention. Equip your front line with tools to handle issues and give members ways to provide feedback. Use this data to improve and win back lapsed members.

Let’s keep the conversation going! We’d love to support you through this process.

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