Tactics to Accelerate Participation in Your Loyalty Program
Defining the threshold of engagement.
By Dr. David Cox
In loyalty and incentive programs we often focus on the concept of the ‘threshold of engagement’. This is a critical concept as it defines the point at which the program participant has earned sufficient equity in a program where they switch their behavior status from being enrolled or a member to being an active participant.
The journey of a loyalty program participant starts at the awareness level where they are motivated to join your B2C or B2B program. However, the chasm of disengagement quickly follows in that the participant either thinks the program it is too difficult or complex, requires too much effort to continue the loyalty behaviors to reach an inflexion point where the program now delivers a benefit of even a relative advantage. This inflexion point is call the threshold of engagement – the milestone that defines whether someone is an active participant and advocate of your program, product or service or simply the ‘walking dead’.
However, there are a series of tactics that can be employed to accelerate the journey from enrolment to the threshold of engagement and thus minimize the period that a newly enrolled participant spends in the chasm of disengagement. These include:
Top 3 Tactics to Accelerate Participation in Your Loyalty Program
1. Provide accelerators such as double points for transactions completed in the first 1-2 months or a fast start such as a bonus points sign-up that will help the participant earn enough points in the program whereby they can redeem a reward and even qualify for a recognition tier. These milestones are positive indicators of the threshold of engagement in your program.
2. Ensure that your program is not too restrictive, try and avoid earning caps, or inbuilt milestones that inhibit the release of points that can be spent. These types of program business rules only serve to create the perception that it requires too much effort to reach the threshold of engagement and may result in your enrolled members becoming a ‘zombie’.
3. Become relevant and know your customer. Essential to this tactic is using the analytics and data that you have gathered on each participant to personalize the experience and become highly relevant. If in the early stages of the relationship with the program member, where data may be incomplete, point earning surveys, games and other interactions can be deployed that help build the profile where you can position your program to become an essential part of this participant’s life.
These top 3 tactics are not exhaustive and the most successful loyalty programs have used a number of innovative interactions that particularly resonate with their participants to drive behavior to reach the threshold of engagement. Thus awareness of this concept has helped many programs to engage with their participants and deliver an effective ROI.
Do you have a Loyalty Program that has more Zombies then engaged participants?
The future of loyalty programs is mobile. This mantra has been reiterated across many loyalty marketing industry trend reports. It is a mantra that clearly has face value. In fact, it is a no-brainer, as much of our life now revolves around our little handhelds. Most loyalty programs are migrating to mobile platforms, allowing their members instant access any place, any time. Being able to check your points balance, the latest reward additions or quickly swiping through a learning module in a client’s parking lot definitely ups the convenience factor. But, it does not guarantee an engaging mobile program experience. That is why a number of forward-looking brands have started to engage their members by inviting them to share their ‘must-share-moments’ with the brand and explore the face value of the mobile camera.
For the third year in a row Motivforce has struck gold at the 2017 Brandon Hall Excellence Awards with its Know Your IBM channel incentive program, winning the Gold Award for Best Sales Training Program for Extended Enterprise and Gold Award for Best Unique or Innovative Sales Training Program.
In addition, Know Your IBM received a Silver Award for Best Results of a Learning Program; and Bronze for Best Advance in Creating an Extended Enterprise Learning Program.
In our conversations with organizations that are assessing B2B loyalty and incentive programs, a number of negative perceptions inevitably surface.
Here are the top 5 myths about loyalty programs and our evidence as to why they simply aren’t true.
Over the past 20 years, the structure of B2B loyalty programs has grown from simple sales incentives that reward for achieving sales targets to rewarding for profile performance. Profile performance is the concept of creating the ideal participant profile and rewarding for all behaviours that a participant demonstrates in adopting this profile.
There are many variables to consider when creating the ideal channel loyalty program participant profile and these are broadly classified into the following 5 types of loyalty program participant profiles:
Our research has shown greater loyalty (measured by sales and other valued added behaviours) amongst program participants who are active in enablement tasks, compared to those who are not. In looking at correlations between those participants who have undertaken enablement tasks, versus those who have not, we have observed three traits....
A term that we commonly use in channel loyalty and incentive programs is the effort advantage ratio. This is the study of consumer loyalty programs and the effort a participant must undertake to achieve a loyalty program reward and how this effort impacted on attractiveness of the loyalty program for their continued participation.
These are 7 things to consider when weighing up the Effort Advantage Ratio.
Technology is now defining the route which companies need to take in order to stay relevant and is changing at a rate so fast that organisations and to some extent, society is struggling to keep up.
And whilst digital transformation can start with the introduction of new tech, business transformation is inevitable, which can mean a complete overhaul in a company's products, positioning and ultimately, business goals.
Are you thinking; "do enablement & incentive programs build loyalty with Channel partners and resellers?"
If so then here are some key questions to consider if you're thinking about launching a B2B Loyalty Program or even how to re-engineer an existing one
Is a loyalty program right for your business?
Like any marketing strategy, loyalty programs have a place and an ideal environment in which they should be deployed and managed. So, it is important for firms to undertake a detailed diagnostic assessment to see whether a loyalty program is the best marketing strategy for their product or service, as opposed to rushing to set up a program in the hope that it will solve all your business challenges.
Here are 3 reasons why a loyalty program may not be right for your product or industry:
Try these 3 tactics to accelerate the journey from enrollment to engagement in your loyalty program and thus minimize the period that a newly enrolled participant spends in the chasm of disengagement and go into "Walking Dead" status.