What critical question will validate the value and viability of an existing loyalty program?

As loyalty programs mature and the market continues to be more cluttered, organisations with existing loyalty programs start their evaluation process.

Are the program’s metrics of success meeting or exceeding expectations?

Even with all the internal scrutiny on financial and member behavioural data to prove (or not) the value and viability of a program, there is one critical question to go outside the data analysis and ask members.

If the “loyalty program” were to close down, what would be your likely response?

With options provided to identify the impact:

1. I would not buy as often
2. I would not buy as much
3. I would shop at a competitor
4. I would be less likely to recommend the brand
5. There would be no impact

Clearly, the first 3 options have an impact on the bottom-line, with the 4th an impact on advocacy.

The last would show the lack of engagement or care-factor for the program.

The % of members that select these options will provide a powerful insight to the value and viability of the program.

The latest loyalty research ‘for love or money 2016’, asked this question and it reveals that nearly a third (31%) of members would not buy as often as they do from the brand if the program(s) they are member of were closed and 23% would not buy as much, a double negative impact on the brand’s bottom-line

Interestingly 36% of members said there would be no impact, which is both a challenge and an opportunity.

The challenge is that members do not care about the programs they are members of and the opportunity is make them care.

So if you are considering the future value and viability of your program, ask your members that critical question and you will have a benchmark of the impact on your business and brand.

We reveal some of these results in the complimentary copy of the Executive Summary of ‘for love or money 2016’ available www.theloyaltypoint.com.au.

For a deeper understanding of all the benchmark results and insights across demographics including Millennials, the full 87-page report is available for purchase at www.theloyaltypoint.com.au.


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