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

People aren’t motivated to sign up for a new cobrand or store card, Brohaugh said. Their wallets are cluttered enough, and the last thing they want is another credit card statement in the mail, he said.

Brohaugh recommended setting up a multi-tender program, with better bonuses offered to those using the preferred tender — the company’s credit card. He provided an example of a successful multi-tender program. In this program, regular tenders, regardless of how they paid, received 10 points for every dollar spent. Customers who used the preferred tender received 15 points for every dollar spent. At the conclusion of the program, the retailer had received a 326 percent increase in enrollment for the card, a 498 percent increase in activation and a 533 percent increase in usage. Brohaugh cautioned that with a program such as this, marketers need to provide rewards right away so customers feel they’ve gotten something of value in signing up for the new card.