THE CLARUS Blog

Why Loyalty Program Optimization Needs to be a Way of Life

Listening and understanding your customers is a never-ending process that places them at the center of everything you do.

Optimization is a thought process that packs tremendous impact when paired with data and creative problem-solving.

The lifecycle of a premium loyalty program depends on optimization.

Once the program launches, that is only the beginning and where optimization kicks into high gear.

Optimization transforms a premium loyalty program into a successful premium loyalty program.

Nearly 70% of consumers agree their loyalty is more difficult for a retailer to maintain than ever before, while 88% agree retailers could do more to earn their long-term loyalty.

These two statistics speak directly to the reality that traditional loyalty programs offer little when it comes to competitive differentiation and, over time, they become very stale.

 

“Set It and Forget It” Doesn’t Work in Loyalty

When you’re talking about a premium loyalty program, which caters to your best customers by offering them the best experiences your brand has to offer, a “set it and forget it” approach doesn’t work.

It’s impossible.

The beauty of a premium loyalty program is it offers members exciting and desirable benefits on a continuous basis.

For brands to achieve this, they need to understand their customers’ expectations and desires. Pleasing program members is their No. 1 priority.

The path to premium loyalty success for any brand is through optimization.

Since significant test results drive your optimization planning and focus, it’s clear to see why a “set it and forget it” approach can’t work for a premium loyalty program.

Ask the right questions. Survey your members and utilize user testing tools to obtain information from your demographic. Listen for what they like, what they don’t like, and what doesn’t make sense to them.

Members drive the success of your premium loyalty program.

 

Data: Collect It, Analyze It, and Use It

Optimization can’t occur without acquiring actionable customer data.

Make sure you’re looking at your data and understanding it. Impressions, clicks, opens, joins and any/all types of conversion goals are the most actionable form of data.

It’s important to survey your members and leverage user testing tools to obtain information from your demographic. Find out what they like, what they don’t like, and what doesn’t make sense to them.

User interface, core message, call to actions, trust symbols, graphics, program price, level of commitment needed, and benefit value all impact performance and should be tested.

Even the smallest of tweaks can drive performance and, ultimately, revenue.

These metrics show true engagement and interaction with your program at any stage in the member cycle and should be at the base of your optimization engine.

Test where the volume is.

If your reach is limited and you aren’t driving enough traffic to your program offer, testing further down the funnel won’t deliver significant results you can build upon.

The larger your sample pool, the quicker you can decipher the chances of test results holding.

No test is too small and no obstacle too large. Surprisingly impactful results can come from even the slightest changes.

So, large changes are worth the time to continue pushing the lever on where your performance can be.

Learn more about testing data and optimizing your loyalty program.

 

A Successful Program Grows Over Time to Fit the Needs and Wants of the Customers

Patience is vital to the success in the evolution of a premium loyalty program.

Keeping your members at the center of everything you do is paramount. Meeting and exceeding their needs and desires comes before anything else.

Optimization is a continuous cycle that can pivot on a dime.

Being agile and adapting to the needs of your customers makes it easier to keep track of your program goals.

Even if you launch a premium loyalty program and achieve immediate success, that doesn’t mean you can sit back and relax.

It’s just the opposite. With a premium loyalty program, evolving the program’s benefits to always go above and beyond customers’ expectations is the brand’s ongoing commitment.

Your experience should show clear and unique value in the benefits your program has to offer.

A successful value proposition takes time to build and appeal to the right audience for your program. It needs to evolve with your program over time with supporting data that keeps you on the correct path.

 

Optimization Should Be Second Nature in Your Premium Loyalty Program  

Optimizing your customer experience shows members that your premium loyalty program is relevant, fresh, and geared toward providing value to them.

You’re catering to your most loyal customers with your program benefits.

Make sure your program’s value prop is exciting and easy to understand.

Optimization is the key to the long-term success of your program and it’s something that should be second nature.

As you can see, a “set it and forget it” approach won’t work with a premium loyalty program.

Customer data should be continually collected, analyzed, and leveraged.

A successful program always aims to exceed customers’ expectations.

Don’t you want that in your program too?

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