Loyal to a Fault? Tips to Make Your Loyalty Program Shine

1. Set tiered bonus levels. Referencing COLLOQUY’s recent study of 2,000 loyalty programs, which encompassed all verticals, all regions of the world, and included consumer and B-to-B companies, Hlavinka shared results in which many businesses struggle with loyalty programs.

Fourteen percent of loyalty programs disappeared without any prior notice, and 45 percent had to retool or be disbanded. Of the companies whose programs failed, more than 85 percent of them had set a flat funding rate for their loyalty programs (a consistent earn rate for all customers). “Just because they’re all loyalty program members,” Hlavinka said, “they’re not all of the same value.” She suggested the following: