How to Tell If a Rewards Program Needs a Facelift
The incentive market is already a multi-billion dollar industry, but with customer and employee retention becoming harder to maintain, the industry is expected to continue growing exponentially. In fact in a recent article, Paul Gordon, Rymax’s SVP of Sales stated, “loyalty is on the verge of growing in incredible proportion over the next 20 years.”
Offering a value-based loyalty program has become the norm in nearly every market from automotive and travel to telecommunications. Therefore, programs that do not stay updated and offer the latest incentive trends will ultimately see a decrease in engagement and activity. If your loyalty program currently seems to be stagnant, then it may be time for a facelift.
Facelifts, in regards to loyalty programs, are changes that tighten up your programs effectiveness, eliminating any loose elements that may be dragging it down. Whether the program is customer or employee based, there are a few key signs that program needs to be updated:
Redemption Inactivity: The best way to measure your program’s inactivity is by calculating your breakage rate; the number of unspent points divided by the total of points issued. If your breakage rate is too high then participants are not utilizing their points, meaning participants do not see your program as valuable.
Breakage Facelift: First, make sure the process for obtaining points is not too difficult by re-examining your recognition schedule. Rewarding points should be a consistent pattern that keeps audience members intrigued.
To regain your member’s engagement, send them a reminder of the points they have left or send them products/rewards that have been recently added. Creating a thought-out communication plan that targets associated rewards to your multi-generational audience will assist in ensuring your participants are not only satisfied, but also using the program.
For example, before fashion week you can send out an eblast highlighting some of the most trending, fashion-forward brands you are offering, such as Michael Kors, Furla or Vince Camuto.
Decrease in New Membership: Without new memberships your program has no room to grow. More often than not, this is either a result of poor communication or a lack of motivating audience members with trending reward offerings.
Membership Facelift: Encouraging and rewarding your current members for referring the program to their friends, family, or coworkers is one of the most beneficial tools to increasing your programs reach. Grant a percentage of points for each time a current participant brings on a new membership. This will motivate your audience to spread the word about your program!
No Support: A programs relevance is only as successful as the amount of positive support it has. If you have noticed that the enthusiasm behind the program has decreased, then it’s most likely time to make some changes.
Support Facelift: If you want to engage your audience, you need to motivate your participants consistently and stay top-of-mind. Provide special promotions for seasonal products, highlight new reward offerings in emails and recognize participants for their continued involvement.