Ways to Boost Loyalty Program Participation
Getting people to sign up for loyalty programs is no problem. But getting them to actually use the programs is another story.
While the average U.S. household belongs to 14.1 loyalty programs, per a 2009 study from loyalty consultant Colloquy, they’re active in only 6.2 of those. The take away? Marketers need to shift focus from growing membership to increasing the value of the programs.
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INVEST IN COMMUNICATIONS TO HIGH-VALUE, HIGH-POTENTIAL MEMBERS Use a mix of e-mail, the occasional direct mail piece and a Web site to communicate on a regular basis. Use self-reported preferences to make sure every channel that members see is relevant, says Kelly Hlavinka, a partner at Colloquy.
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BUILD UPON THE IDEA Implement targeted bonuses to high potential customers to sweeten the deal. United Airlines’ Elite Choice program offered gifts to premiere members if they met certain mileage thresholds.
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EXPLORE PARTNERSHIPS Seek out non-competitive partners that can be looped into the program. Convenience store Speedway added manufacturers that sell products at its locations, including Coke and Krispy Kreme to its Speedy Rewards program.
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TOUGH LOVE Identify simple, well-communicated rules to keep members active in the program. Speedway manages the health of its program by notifying members that if they don’t fill up their gas tanks within 12 months, they will be removed from the program.
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FOSTER WORD OF MOUTH ADVOCACY Investing in incentives or bonuses for referral behavior can go a long way with members. Intercontinental Hotels ran a six-week test offering its top Priority Club members triple points for friends who booked a room night, Hlavinka says.
— PATRICIA ODELL
