Don't assume

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If a tree falls in a forest, and there’s no one to hear it, does it make a sound? 

So goes one of the great (or some would say, dumb) philosophical questions ever posed.   So what do trees falling in uninhabited woods have to do with loyalty programs?  Essentially this, to make a loyalty program effective, a message needs to be communicated and heard. 

In our experience and in documented studies, it has been shown that many customers do not realize or understand the benefits available to them.  So when companies say that their rewards aren’t working, we ask them to share their rewards communications strategy with us.  And unfortunately, what we learn is that the program is included in acquisition communications, but not reinforced as part of the overall customer management strategy.  And that’s a missed opportunity.

Ask yourself if you know the details of all of the loyalty programs to which you personally belong.  If you’re like most people, you don’t.  And so, before throwing in the towel on your existing loyalty program, take a look at how it’s being marketed to your existing customers.  See if there are opportunities for reinforcement that are currently not being leveraged.  By all means, test into them to see if increased awareness changes behavior in a positive way.  Although existing programs generally could use an update on a regular basis, don’t overlook the value of driving awareness and engagement on your current set of benefits. 

If you have a benefit that operates on a breakage model, you may not want to promote the benefit due to the cost associated with usage.  Stay tuned for the next excerpt where we help you address that issue.


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