Reducing the friction points in loyalty programs. Start with Simple.

It’s disappointing to see how loyalty programs create friction points to fracture the very purpose of their existence.

The antidotes to all the friction points are identified in the 24 ingredients to a successful loyalty program found in the research study for love or money 2016.

The 24 ingredients are classified into SPV factors:
S = Simple
P = Personal
V = Valuable

Let’s focus on the SIMPLE factors.

There are 6 SIMPLE ingredients as antidotes to the four friction points (FP’s):

1. Understanding
2. Earning
3. Redeeming
4. Interacting @ touchpoints

FP 1. Understanding the program’s promise

Antidote 1: 10 words & 10 seconds. The program is easy to understand, so easy it can be said in 10 words or less and in less than 10 seconds. Say it and time it.
Ideas to help:
– Remove as many terms and conditions as you can.
– Remove these * wherever you can.
* are a common cause of cracks in simplicity, signaling some legalese, rule or roadblock.

FP 2. Earning the rewards
Antidote 2: The rewards/benefits/points are easy to earn
Ideas to help: The main reason members join programs (to be rewarded for their loyalty) is a critical area to reduce friction. If the thresholds are too high, the hoops to frequent to jump through, the earn rate is too great, then friction increases in intensity.
– If you have completed a rigorous review of existing behaviours to create stretch targets that are achievable for the number of members whose incremental behavior you want to motivate, then this strategic amount of friction has a benefit.
– The earn rate to those thresholds need to be a stretch target without demotivating the members who are targeted.

FP 3. Redeeming for rewards
Antidote 3: The program is easy to redeem rewards & benefits
Ideas to help: No matter what channel or process members need to go through to redeem their rewards, the redemption experience should be as simple as 1,2,3
1 = how much have I earned
2 = what can I redeem it for and
3 = let me redeem easily!

FP 4. Interacting @ touch-points
Antidote 4: The program is easy to interact with in-store
Antidote 5: The easy to interact with online
Antidote 6: The easy to interact with through an app on my phone
Ideas to help: Test every touch-point for simplicity of experience so that they think “I achieved the outcome I wanted and it was easy”

Understanding, earning, redeeming, interacting @ touch-points are potential friction points that fracture a programs success.

SIMPLE is the starting point to reducing friction

Have a happy loyalty day with fewer friction points.

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