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What Successful Loyalty Programs Do (That Unsuccessful Ones Do Not)
Now that we've covered the two most important aspects of designing a loyalty program, let's look at what successful programs do differently compared to those that fail. Understanding these distinctions can help you avoid common pitfalls and ensure that your program provides what we at playAWARDS like to refer to as "loyalty lift."
Personalization: Tailoring the Experience
Successful loyalty programs understand that one size does not fit all. They use customer data and insights to personalize the experience, offering rewards and communications that are relevant to each individual customer. This could involve personalized offers based on purchase history, customer geography, targeted promotions for specific customer segments, or even customizing the types of rewards available to each customer.
Unsuccessful programs, on the other hand, often take a generic approach, offering the same rewards and incentives to all customers regardless of their preferences or behaviors. This lack of personalization can make the program feel impersonal and less valuable to the customer, leading to lower engagement and participation.
playAWARDS segments its rewards based on a number of attributes, and aims to tailor the rewards catalog specific to the player to the degree that we know about them. A number of our features can be customized based on segment as well. Finally, point earning can be segmented. We take personalization very seriously and reserve a track for it on our product roadmap.
Continuous Engagement: Building Long-term Relationships
Another hallmark of successful loyalty programs is their ability to keep customers engaged over the long term. They do this by creating a sense of ongoing value and connection with the brand, rather than simply offering one-time rewards. This might involve regular communications, such as emails or app notifications, that highlight new offers, rewards, or program updates. It could also involve special events or experiences that are exclusive to loyalty members, further deepening the relationship.
In contrast, unsuccessful programs often fail to maintain this level of engagement. They might offer an initial incentive to join but then do little to keep customers interested over time. Without regular interaction and fresh incentives, customers may forget about the program or lose interest in participating.
playAWARDS is all about long-term relationships. Our Player Development team puts the human aspect of the experience at the forefront. Our host program has been calibrated to encourage and cultivate deep, long-term relationships with your most valuable players. Our special events program and community-building creates a space for players to create real emotional connection with your brand. And our most aspirational rewards create a long-term connection to the program, giving all players something to strive for.
This of course also implies that we need a way to connect with players.
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Email is one method, and for that, we need authentication. We will work with you on authentication campaigns to get more emails in the database.
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Another method is in-app. Our Loyalty Webhook creates a way for loyalty messaging to surface in your app.
Clear Communication and Transparency
Successful loyalty programs are also transparent and clear in their communication. Customers know exactly how the program works, what they can earn, and how to redeem their rewards. There are no hidden terms or confusing rules that could lead to frustration or disappointment.
Unsuccessful programs, by contrast, often suffer from poor communication. Customers may be unclear on how to earn or redeem rewards, or they might encounter unexpected limitations that sour their experience. This lack of clarity can lead to mistrust and disengagement, ultimately causing the program to fail.
playAWARDS is constantly iterating on its technology, working with rewards partners, and optimizing how it reflects and communicates the terms of the program to players. This is mostly maintained completely by playAWARDS on your behalf inside the Loyalty Center, as well as emails, the redemption agents, and other communication touchpoints in our platform.
Wrapping Up
Designing a successful loyalty program requires careful consideration of what your players value and how you can make their experience as seamless as possible. By focusing on creating a compelling value proposition and ensuring ease of use and accessibility, you can build a program that not only attracts customers but keeps them coming back. By incorporating personalization, continuous engagement, and clear communication, you can differentiate your program from those that fail to deliver real value. In doing so, you'll foster stronger relationships with your players, enhance loyalty, and drive loyalty lift.
playAWARDS can help. If you have any questions about the above, or want help moving forward on an initiative where you feel your current loyalty program lacks, reach out to your playAWARDS client success manager!