Have you noticed the recent rise in loyalty program relaunches?
In many ways 2019 was the year of relaunches, with major brands like Target and Starbucks launching new programs.
So why did this happen?
And more importantly, is it a good thing?
Why So Many Loyalty Program Relaunches?
Modern retail is changing daily, yet most loyalty programs are still undifferentiated.
On top of that, customers are active in less than half the programs they are members of.
It’s no wonder we’re seeing so many relaunches.
Loyalty program relaunches aren’t a bad thing at all.
They can be very effective.
But they are also expensive, time consuming, and, most importantly, can create customer confusion.
Even if you execute the relaunch perfectly, your program will eventually become stale and you’ll start the cycle all over.
Stopping the Cycle
To stop the cycle and keep pace with the daily changes in our industry, brands should add to their programs over time.
Test new benefits.
Find new ways to engage your members.
This allows your program to evolve over time and helps you find the benefits that give your customers the best experience your brand can offer.
Amazon Prime is a great example of a brand that diligently adds enticing benefits to its loyalty program.
This is one of the reasons the highly successful Prime program has become so universal.
Amazon adds value to Prime on a consistent basis.
Prime began as just free shipping, but now it includes movies, music, and even its own shopping holiday.
While you’re not likely to add music benefits to your program, adding to your loyalty offering over time is doable and goes a long way to keep things fresh and relevant.