Considering loyalty programs are tailored to meet the growing needs of consumers, it’s no surprise that a program's success is largely dependent on its members.
But what does an engaged loyalty program member look like? How do they interact with a loyalty program?
Dr. Yuping Liu-Thompkins, professor of marketing at Old Dominion University and director of the Loyalty Science Lab, shared her thoughts on the three signs of an engaged loyalty program member.
1. They redeem their points
To be deemed a loyal customer, consumers have to repeatedly interact with brands and feel connected to the company. In a loyalty program, those interactions may be seen through the accumulation of time spent, purchases made or points gained.
According to Liu-Thompkins, engaged customers interacting with a gamified loyalty program will align with all three areas. And a great way to determine if a customer is loyal or not, is by examining the frequency of their interactions with you.
“Typically what we see is, a customer who isn’t really engaged in a loyalty program won’t earn as many points [as customers who are]. During the majority of transactions they’ll forget to use their loyalty card or their points will expire,” said Liu-Thompkins.
2. Connected to every aspect of the loyalty program
At the most basic level of consumer loyalty, consumers will express an interest in your products. But you’re more heavily involved program members? They’ll showcase intrigue across various platforms.
Typically when we think about a loyalty program, we think about customers earning points, but Liu-Thompkins says there is an informational component to loyalty as well.
“Research on loyalty program engagement has shown that quite a few of those signature behaviors that indicate a customer is engaged are based on the informational exchange. Are you willing to receive information from the company? Are you actively looking for what’s new with the program? Do you share that information with others?” Liu-Thompkins explained.
This communication helps customers feel like they’ve got the inside scoop on new developments with their favorite brands and loyalty programs. The more fascinated a customer is with your brand, the more they’ll want to know about it.
3. Where customers are in the program
A gamified loyalty program isn’t just a good way for members to keep up with their history — it’s a way for you to see how engaged they are.
When loyalty program members are classified in tiers based on their purchase history, their engagement status is put on full-display. Those in the higher, more sought-after tiers are customers who spent the necessary time and money to earn the ranking.
“Where customers are in the loyalty program and how they’ve interacted with you in the past is an indicator of how they’ll respond to you in the future,” said Liu-Thompkins.
It's also a direct indicator of how many purchases have been made under the program. These are purchases a customer has made through your app, with their account, or in connection with their earned points. Your customers in high-tiers aren’t just loyal, but intentional as well.
When it’s time to analyze the success of your loyalty program and determine if the tactics you’ve employed are working, look to your members for the answer. Engaged customers are a good benchmark for success and their actions will let you know just how well your program is doing.
