Experts and studies confirm over and over that for most people, price is not the only thing that drives a customer’s enthusiasm for your loyalty program. There are two other important factors to consider.
First, customers love choice and to feel some level of control. Take the original, very successful, first loyalty program: S&H Green Stamps. Customers loved that they could choose their reward and had a feeling of control by the flexibility afforded to them based on the number of stamp books they filled. Allowing flexibility, choice and control may build engagement from customers.
Second, customers love ‘status’. They’re proud of the points they’ve earned. Sometimes the bragging rights of reaching a premium points level is as exciting to them as the reward they get for it. It’s a matter of distinction. They are a VIP, a top customer, a valuable asset to you. Put some meaning behind earning rewards. When rewards appear too easy to earn, the allure of the program diminishes. Finding a perfect balance between the perception of status of earning rewards and making it too difficult is a fine line that may be tricky to walk. But it will be well worth it when you see the results of striking that chord.
Get creative with your loyalty program. Don’t make it too easy or repetitive. And don’t make it so complicated that the customer can’t understand it. Make sure he/she knows what she’s working toward and treat them accordingly when they reach it.
