Four Signals Your Loyalty Program Needs Updating

NEWTON, Mass. — Declining loyalty, evidence that customers are “gaming the program” to their advantage, franchisee complaints and a conflict with corporate objectives are four signs a loyalty program needs to be upgraded, Paytronix Systems Inc. wrote in a research brief.

Called “Is It Time to Change Your Rewards Program,” the third brief in the Paytronix Data Insights “Extracting Customers Insights From Big Data” series, explains how to evaluate a loyalty program’s effectiveness in meeting the two primary goals of loyalty: driving members to visit more often and to spend more when they visit.

“By understanding and recognizing how to watch for and evaluate the four signals it’s time to change your loyalty program, readers will know if it’s time to take a careful look at their loyalty programs, and in particular, the program design,” said Lee Barnes, head of Paytronix Data Insights. “If your rewards program doesn’t adhere to core design principles, it’s probably not built for success. In the Paytronix research brief, we key in on each of the four signs, then for those who recognize the need to act, we give actionable advice regarding three elements you can start to change right now, for a big impact.”

The brief specifically explores the key signs of a loyalty program change, alongside a case study of lessons learned from changes made to Starbucks Corp.’s loyalty program earlier this year.

The full Paytronix brief can be read here.

Newton-based Paytronix Systems Inc. offers a proprietary guest engagement platform intended to help more than 300 retail chains and restaurant chains manage and grow more than $18 billion in guest spend.