What are the ingredients to a good loyalty program? It's a question CX Dive often asks and business leaders contemplate.
In reality, there’s no one recipe — the elements will depend on a brand’s customer base, industry and competition. But the analysts and loyalty leaders we’ve spoken to highlight some commonalities of successful programs: differentiation, value and emotional connection.
“The table stakes, if you will excuse the pun there, are offering points back,” Reba Hatcher, chief commercial officer at ButcherBox, told CX Dive, last month. ButcherBox’s loyalty program is designed to offer different perks and communication frequency depending on tier.
For Lowe’s, the need for simplicity starts from enrollment, according to Amanda Bailey, VP of customer marketing and loyalty at Lowe’s. Its tiered programs don’t make customers work to earn their initial benefits.
“When people join loyalty programs, sometimes there’s this belief that you’re at the bottom of the mountain staring up, and you’re like, ‘I’ll never get there,’” Bailey told CX Dive.
Here are six stories about what goes into successful loyalty programs and what customers are looking for:
