Loyalty programs are struggling to deliver an engaging member experience. In Forrester’s Consumer Benchmark Survey, 2024, 34% of US online adults who belong to a customer loyalty program agreed that they frequently forget to use loyalty programs to which they belong. To maximize program effectiveness, loyalty programs need a balanced mix of transactional benefits that offer monetary value and nontransactional benefits that spark more emotional connections.
Financially tied benefits such as points and discounts are table stakes for modern loyalty. They motivate program members to share more information about themselves and drive desired purchase behaviors. But they are also easy for other brands to copy and for consumers to forget. Lower prices often drive switching behavior. To create meaningful and durable customer connections, loyalty marketers need to include benefits that drive more emotional connections with the brand. In Forrester’s Customer Experience Benchmark Survey, 2024, 82% of consumers indicated that they will spend more with brands that make them feel appreciated.
To strike the right balance of benefits and drive engagement, check out our recently published report, How To Balance Your Loyalty Program Benefits, in which we delve into the following topics:
- How to assess your program benefit mix. Use our calculation to quickly assess how balanced your program benefits are by using existing member data.
- Inspiration for rewarding beyond the transaction. Even a well-balanced loyalty program can discover new opportunities to wow members and increase engagement. For example, programs can offer members exclusive behind-the-scenes experiences, invitations to attend partner events, or access to members-only merchandise.
- A five-step framework for balancing benefits. Follow our five-step framework to develop a focused plan to evaluate and incorporate a balanced mix of member benefits. This approach starts with an audit to define gaps and opportunities followed by company effort to uncover new and unique engagement elements. Winnow the list to the most impactful items by validating each benefit through research and feasibility. The goal is to develop a process that promotes continuous improvement of benefits that align with the brand and resonate emotionally with members.
Check out the full report for top strategies to make members feel valued and appreciated. Questions? We’d love to help you with your loyalty initiatives. Connect with us by scheduling a guidance session.
