Improving Consumer Engagement with Loyalty

loyalty cards


In a recent article written by Adam Blair from Retail TouchPoints, he touched on 4 ways of how to improve consumer engagement with loyalty programs. As we have recently introduced our Schrader Saver loyalty program, we find these 4 factors extremely important as we continue to move forward.

In the most recent Bond Brand Loyalty Study, they examined more than 400 loyalty programs across 10 different industries based on a survey of more than 28,000 American consumers. According to the report, the programs that are offered by retail brands rank high in customer satisfaction.

CEO of Bond Brand Loyalty commented that “consumers love loyalty programs and continue to join more every year”. However, he continued to state that the active engagement of consumers have remained flat. With that in mind, it means there’s a large opportunity to take ‘same old’ programs and ensure that loyalty members’ needs and expectations are being met.

It is no secret that consumers love loyalty programs; the average consumer is part of around 14 programs. While it’s easy to have people sign up, it’s harder to keep them engaged with the loyalty program. The average may be around 14 programs per member but consumers are active on only around 6 programs.

By utilizing the following 4 tips, there is a better chance for your program to be part of the 6 programs the member remains active.


  1. Focus on the experience 
    Rewards are certainly important, but members’ experience with the program is what really moves the needle on satisfaction. Factors such as the digital experience, the “human touch” and how the program aligns with the overall brand presentation offer significant opportunities for brands to differentiate from their competitors.
  2. Encourage reward redemption
    Members that actually redeem rewards are 2X more likely to be highly satisfied with a program compared to non-redeemers — but 20% of members do not redeem their rewards. Encourage members to set redemption goals, make it easy for members to discover their status, and help them find a purpose for accumulating points.
  3. Mitigate post-redemption attrition
    The downside of encouraging members to redeem their points is that many experience a let-down after the prize is awarded. Program operators need to proactively intervene to lessen the attrition risk by maintaining member engagement.
  4. Align the program across channels and the enterprise
    Members who strongly agree that their program experience is consistent across the brand experience a 5.7X lift in satisfaction — but only 27% of members agree with this statement. Retailers should motivate employees to represent both the brand and the loyalty program: when retailers improve members’ understanding of a program, including how it works and its benefits, the result is a 12X increase in member retention. Among members who say program representatives make them feel positive emotions, there’s a 13X higher likelihood of member retention.

The important of any of this is making sure the consumer/loyalty member has a consistent positive experience with the loyalty program. Read more on loyalty in the original article.


Source/Credits: Adam Blair, Retail TouchPoints