Wait, ANOTHER Loyalty Card?

If you’re like me, you have at least one loyalty card in your wallet – or if you’re lucky, on your smartphone – from one of your favorite stores or restaurants. Did you know that the average US household subscribes to about 22 different loyalty programs? The customer loyalty space is becoming extremely crowded within retail and hospitality, and brands need to differentiate their programs from the multitude of others – especially those of their competitors.

When thinking about your customers, in terms of your loyalty program, it’s important to consider two types of people: target consumers and bystander consumers.

Target Consumers

These people are your brand advocates – they’re your primary demographic and they’re actively using your loyalty program or app.

Bystander Consumers

These people are customers who aren’t yet part of your loyalty program, but observe others being rewarded.

Your goal should be to create a loyalty program that both delights current customers and appears irresistible to those not yet engaged. In today’s digital age, your program should include an online and mobile app experience, including the ability to add the card to Apple Passbook and Google Wallet.

In addition to thinking about these two groups of people, you’ll want to take three guiding principles into account when creating or revamping your loyalty program: rule clarity, reward exclusivity and reward visibility.

Rule Clarity

How easy (or hard) is it for customers to understand rewards? Keep it simple – choose one form of earning and redemption to minimize confusion. Are redemption options clear from the start? Customers should know what these options are before signing up.

Reward Exclusivity

Are your customers actually being rewarded? If they’re part of your loyalty program and they’re actively engaging with your brand, they should be rewarded. Create rewards and promotions that are directly related to amount of customer activity. Also, think about issuing exclusives and members-only invitations or contests.

Reward Visibility

If you have a physical retail location, promote your loyalty program in-store! Entice shoppers (or diners) to sign up for the program by enhancing your in-store branding and signage. Consider promoting certain in-store activities and/or contests that require loyalty program membership to participate.

Ultimately, your goal should be to use your loyalty program to engage and activate your customers, while also learning more about them so that you can segment them and personalize future marketing messaging you provide them with.

Interested in learning more? Download our checklist on how to design a loyalty program people actually want to use. Ready to get started? Contact us today!

Updated: Apr 13, 2022