Proven Loyalty Program Strategies To Increase Engagement & Retention

There was a time when brands only required a reward-based loyalty program in place to maintain long-term relationships and drive repeat business.

Fast-forward till date, competition grew and so did the loyalty programs and their overcomplicated rules to claim rewards (one of main reasons for members to leave programs).

Now to compete brands must focus on fostering an emotional connection with customers to stand out from the competition.

Call it retailers, business owners, or brands – the biggest question that remains is, “how to re-engage inactive loyalty program members?”.

We will focus on the actionable loyalty program engagement strategies that are effective to retain loyalty program members.

Understanding Why Members Disengage

The joy of claiming rewards isn’t completely gone. It still fills one’s heart with excitement.

Loyalty rewards still hold a special place as they allow customers to feel valued and create a sense of community around a brand.

But when this is not met, customers disengage from loyalty programs and eventually, the brand.

Disengagement is not an unsolvable problem. Re-engaging these inactive members for loyalty programs presents an opportunity to revive interest, build lasting loyalty, and unlock greater revenue potential.

It is crucial for any business to understand the root cause of member disengagement in order to boost loyalty program participation.

By identifying the pain points, businesses can create customer re-engagement strategies that address them directly. Here are some of the most common reasons members lose interest:

1. Lack of Personalization

Today’s consumers are accustomed to hyper-personalized experiences, from tailored social media feeds to receiving recommendations for TV shows/videos, shopping, etc. Loyalty programs that fail to provide personalized rewards or relevant offers risk losing their members.

Example:

A pet owner who regularly buys dog supplies may find no value in a loyalty program that offers discounts on unrelated items like cat food or fish tanks. When rewards don’t align with a customer’s needs, the program feels irrelevant and may not retain loyalty program members.

2. Irrelevant or Unattainable Rewards

A major turndown for many loyalty program members is the inability to see tangible value in the rewards offered. Some programs set unrealistic goals for earning rewards or provide incentives that don’t resonate with their audience.

3. Low Perceived Value

The efforts and strategies required to improve customer loyalty program engagement often determines its success. If customers perceive the benefits as too minimal compared to the time and energy needed to earn them, disengagement becomes inevitable.

For example, a program requiring frequent purchases to merely earn a reward of $5 coupon may fail to motivate.

4. Complex Processes

Convenience is critical in loyalty programs. Overly complicated redemption processes or complex interfaces can frustrate users, pushing them away.

Programs that require manual tracking of points or navigating through multiple steps for redemption are less likely to retain loyalty program members.

5. Inconsistent Communication

Even the best-designed programs can fail if members aren’t consistently reminded of their benefits. Without regular updates on points, rewards, or program features, members may forget about the program entirely.

Tip

According to a Loyalty Report, the average consumer is involved in 14 loyalty programs but has the capacity to engage with only 7 of them. How can you make your loyalty program stand out? Let’s discuss some proven strategies that will make your program shine!

Why Re-Engagement Matters?

Re-engaging inactive loyalty program members is more than a strategy—it’s an investment in scaling your business. Here are the key reasons why customer re-engagement strategies should be a priority for any brand:

1. Increase Customer Lifetime Value

Engaged loyalty program members tend to make more frequent purchases, leading to higher lifetime value. Reviving the interest of passive members can significantly boost their contributions to your revenue.

2. Reduces Customer Acquisition Cost

Retaining existing members is far more cost-effective than acquiring new customers. By focusing on re-engagement, businesses can maximize the value of their current customer base without incurring the high costs associated with new customer acquisition.

3. Boost Brand Loyalty and Trust

Loyalty program engagement strategies with a personal touch can strengthen the emotional connection between the customer and your brand, fostering long-term loyalty.

4. Enhances Revenue Predictability

Active loyalty program members generate consistent revenue streams. By reactivating inactive accounts, businesses can stabilize their income and better predict future earnings.

5. Provides Actionable Insights

Re-engaged members offer a wealth of data, from purchasing behaviors to preferences. This information can be leveraged to refine the program and develop more effective marketing strategies.

The Expert Review:

The survey results clearly outlined the thought process of loyalty program owners and their plans to invest in the trends to improve and increase loyalty program engagement.

Key Benefits of Re-Engaging Loyalty Program Members

i. Improved Retention Rates: Reactivated members are more likely to remain loyal to the program in the long run.

ii. Higher Engagement Levels: Re-engaged loyalty program members often become more active across all channels, from mobile apps to social media to in-store interactions.

iii. Stronger Community Feel: Active loyalty programs foster a sense of belonging, creating a vibrant community of satisfied customers.

11 Proven Strategies to Re-Engage Loyalty Program Members

Now that we’ve established the importance of re-engaging loyalty program members, let’s explore effective customer re-engagement strategies that can help businesses reconnect with dormant members and rebuild their interest:

1. Deliver Personalized Rewards and Offers

Personalization is key to capturing attention and reigniting interest. Use data analytics to understand member preferences and tailor offers accordingly. Personalization is one of the most important customer re-engagement strategies.

How to Get Started:

1. Analyze past purchase behavior and reward redemption patterns.

2. Segment members into specific categories (e.g., frequent buyers, seasonal shoppers).

3. Craft personalized emails and push notification messages showcasing relevant offers.

Example: A book retailer could send personalized recommendations, such as “10% off on new releases by your favorite authors!”

2. Leverage Data Analytics to Identify Dormant Members

Data analytics can provide invaluable insights into member activity. By identifying patterns in disengagement, businesses can develop targeted marketing strategies to outreach.

Pro Tips:

Use CRM software to track metrics like the time since the last purchase or reward redemption.

Automate workflows to trigger re-engagement campaigns from time to time based on the inactivity thresholds.

3. Craft Engaging Re-Engagement Campaigns

A well-crafted campaign can remind members of the program’s value and what they are missing on. From personalized emails to push notifications, businesses should use creative messaging to reignite interest.

Campaign Ideas:

i. If you are wondering how to re-engage inactive loyalty program members then start with win-back campaigns like “We Miss You” – messages: Offer a special discount or reward to encourage members to return.

ii. Points Expiry Alerts: Notify members of balance points nearing expiration.

iii. Seasonal Offers: Highlight seasonal or holiday promotions tailored to individual preferences.

Example: A gym offering membership perks could say, “It’s been a while! Book a free fitness class on us and restart your fitness journey.”

4. Introduce Limited-Time Promotions

Limited time offers create urgency and a sense of FOMO (fear of missing out). Such loyalty program engagement strategies could encourage members to take immediate action.

Whether it’s bonus points or exclusive discounts, these promotions tap into the psychological principle of FOMO and can boost loyalty program participation.

Ideas for Promotions:

“Double your points this weekend only!”

“Earn 500 bonus points when you shop in the next 3 days.”

5. Optimize Omnichannel Accessibility

With so many apps, it is hard to find where your audience is and how much time they are spending. The best thing is to be present everywhere.

Let your loyalty program be accessible across all platforms—mobile apps, websites, and in-store experiences. A seamless experience can go a long way to re-engage loyalty program members.

Features to Include:

• Mobile app features for tracking rewards and redeeming points.
• QR codes for in-store check-ins.
• Integration with digital wallets for convenience.

6. Foster Social Media Engagement

Social media can be a powerful tool for re-engagement. Encourage members to share their experiences, participate in discussions, and celebrate milestones on social platforms.

How to re-engage inactive loyalty program members on social media?

i. Create branded hashtags like #MyLoyaltyJourney.

ii. Run contests or giveaways exclusively to retain loyalty program members.

iii. Feature user-generated content to showcase real customer stories.

7. Incorporate Gamification

Gamification adds a layer of excitement to loyalty programs, making participation fun and rewarding. Features like leaderboards, badges, and challenges can create a healthy competition among members.

Examples:

Introduce “levels” with exclusive rewards for higher tiers.

Offer rewards for completing specific challenges, like shopping multiple times within a month.

8. Send Reminders About Expiring Rewards

Reminders about expiring points or rewards can prompt members to act immediately, driving engagement. You can create an immediate call to action by adding personalized rewards.

9. Launch Surveys to Gather Feedback

Feedback is essential for understanding members’ needs and improving program effectiveness. By inviting members to share their opinions, businesses can identify gaps and opportunities to increase loyalty member engagement.

How to Use Feedback in 3 Steps:

Step 1: Conduct surveys asking members about their experience.

Step 2: Incentivize survey participation with small rewards or bonus points.

Step 3: Thank them for their time, valuable contribution, and for staying loyal with them.

10. Track, Measure, and Optimize Customer Re-Engagement Strategies

Measuring the effectiveness of re-engagement efforts means identifying gaps and continuously improving. Monitor metrics like reactivation rates, redemption rates, and overall satisfaction to refine strategies to boost loyalty program participation.

11. Preventing Future Disengagement

Once you’ve successfully re-engaged loyalty program members, focus on preventing future disengagement. Here’s how:

i. Refresh Rewards Regularly: Introduce new and exciting incentives to keep members interested.

ii. Educate Members: Offer tutorials on how to maximize program benefits.

iii. Maintain Regular Communication: Stay in touch through newsletters, app updates, and social media posts.

How Loyal-n-Save Can Boost Loyalty Program Participation for Your Business?

Loyal-n-Save is a premium loyalty and engagement platform. We enable businesses to go beyond rewards and points. Our loyalty program features have helped many brands to drive greater customer lifetime value and cost-effective acquisition by nurturing customer relationships and enhancing engagement.

Features:

1. Campaign Builder

You can create customized campaigns for your audience in just a few minutes. Automate campaigns to send email, push notifications, and in-app messages. Moreso, promote your campaign across multiple channels while keeping track of performance using engagement metrics.

2. Swag Shop

Swag shop helps you build brand awareness & engagement by listing your brand merchandise and other items. Set reward goals and allow customers to spend reward tokens to earn them.

3. Umbrella Loyalty Program

Connect all your stores under one loyalty program and let customers benefit by earning and claiming rewards at any location.

4. Auto Trigger Campaigns

Set automated campaigns for birthdays, anniversaries, holidays, and more. Send personalized and exciting rewards to your customers for all those special moments.

5. EAIV Completion

Promote your customers to complete one-time EAIV (Electronic Age and Identity Verification) in the app to access 21+ offers. Earn digital coupons every time you participate.

6. Push Notifications & Emails

Set up your campaigns instantly with our ready-to-use templates. Create more engagement and brand awareness through emails and messages by sending exclusive deals.

7. Mobile App & Website

Let your customer claim rewards anywhere, anytime through Loyal-n-Save mobile & website. While you can manage campaigns, track progress, set rewards, and more through your ‘Loyalty Dashboard’.

8. Team Builder

Allows customers to build their team by referring friends and family to join. Earn reward on every purchase from a referral. As the team building ‘Captain’ – you earn tier-based rewards.

Wrapping Up

Re-engaging loyalty program members is an essential strategy for retaining customers and maximizing revenue. It is a must for brands to align their strategies and rewards structure with consumer values to boost loyalty program participation.

More effort and investment in loyalty program trends such as gamification, omnichannel integration, emotional engagement, and personalization is needed.

Act today and unlock the full potential of your loyalty program with Loyal-n-Save!