From PSFK's Loyalty Debrief report, here's how three of today's top brands are increasing efficiency and flexibility in their benefits programs to encourage long-term consumer participation

Just because a consumer signs up for a loyalty program, it doesn’t mean that they will become an active participant. 54% of all respondents in a 2019 report on loyalty from HelloWorld said that it takes too long to earn a reward. As a result, members get frustrated and lose patience, and many programs suffer from the attrition. With agile incentives, companies can encourage their customers to become active members.

Brands and retailers are reconsidering their rewards structure, offering smaller rewards more frequently to spur ongoing activation and engagement while encouraging members to work towards a larger redemption milestone. The following examples showcase how three contemporary retailers are redesigning their member benefits plans, analyzing behavior to better understand how and when their customers are engaging with rewards and making the necessary adjustments to encourage long-term participation:

Starbucks Rewards
Coffee chain Starbucks restructured its rewards program to allow members to earn points sooner, in as few as 2-3 visits, in order to benefit less frequent customers. Under the old structure, members had to wait until they had accumulated 300 points and reached Gold status to start earning rewards. Now, loyalty program members can earn points as they go and have the option to redeem them in smaller amounts. Instead of waiting until they have accumulated 125 points to receive a free drink, members can redeem as few as 25 points for smaller perks, such as an extra espresso shot.

Verizon Up
Telecommunications provider Verizon Wireless updated its rewards program to offer its members a reward every month when they pay their bill, instead of rewarding them for every $300 they spend. Members can use their credits towards a new phone, tickets to events or purchases at partner retailers, including Starbucks and Amazon. While members are now able to earn rewards more quickly, the credits will also expire after 30 days.

Healthy Awards
Nutritional supplement retailer the Vitamin Shoppe revamped its loyalty program to enable members to earn awards up to 50% more quickly as they move from Bronze to Silver and Gold levels. The program also allows more flexibility in how rewards are redeemed, with points that never expire and the option to have awards issued automatically or accumulate until members are ready to redeem them. Other perks include access to an in-store wellness coach, choose-your-own-sale days and a free birthday surprise.

For more trends on the way today's retailers are reimagining the loyalty program to foster more meaningful and lasting consumer relationships, download PSFK's Loyalty Debrief report, out now.


Lead image: stock photos from dennizn/Shutterstock

Just because a consumer signs up for a loyalty program, it doesn’t mean that they will become an active participant. 54% of all respondents in a 2019 report on loyalty from HelloWorld said that it takes too long to earn a reward. As a result, members get frustrated and lose patience, and many programs suffer from the attrition. With agile incentives, companies can encourage their customers to become active members.

Brands and retailers are reconsidering their rewards structure, offering smaller rewards more frequently to spur ongoing activation and engagement while encouraging members to work towards a larger redemption milestone. The following examples showcase how three contemporary retailers are redesigning their member benefits plans, analyzing behavior to better understand how and when their customers are engaging with rewards and making the necessary adjustments to encourage long-term participation: