Loyalty Levers 5 Useful Customization Tips For Your Loyalty Program

Jake Madrigal, Customer Success Director at Annex Cloud, speaks about 5 useful customization to your loyalty program. Having launched hundreds of reward and loyalty programs, Jake breaks down the 5 things he thinks are a must when customizing your own loyalty program.

5 Useful Customization Tips For Your Loyalty Program

Hi, everyone. Welcome back to another Annex Cloud Loyalty Levers discussion. Today, we're going to be talking about five great loyalty program customizations that you can add to your program to get more benefits. One of those is going to be adding a program that has a combination of loyalty tiers, as well as points. And really, we feel like this is great customization because it essentially opens up so much ability to communicate about the program to the customers. So when you have just the straight points and rewards-based program, you can really say, "Your points are expiring. You're close to a reward. You've unlocked a reward. And here's a couple of different ways to earn points."

When you have a combination of points in tiers, you can really market to the customer and communicate with the customer about the benefits of the tiers. You're close to a tier, you have unlocked a new tier, we've added new benefits to these specific tiers. You can always lean on the points and rewards discussion as well. So it really just gives you more ability to effectively communicate with your customer when you have a program that includes both a combination of points and tiers.

Another really important customization that we feel should be added as part of a loyalty program is the ability for customers to redeem their rewards directly at checkout. So in some programs, you have to go to different areas around the site, you have to claim rewards, you have to copy code or take some sort of incentive in-store. Now we want to make this process very simple for your customers because this is one thing that influences them to come back and make another purchase is maybe that reward that they earned on the first purchase. So allowing for this very easy customer experience for redemption is essential to making a great user experience. And when you have the ability to redeem those rewards at checkout, it's going to make for a better user experience, which in the long run is going to lead to a higher-performing redemption rate for your loyalty program.

Another feature that we think is really important to an effective loyalty program is the ability to set expirations on both of those points in tiers. So we all know that we need to have some sort of expiration for points. We don't want to have this neverending liability in terms of points. So having an effective expiration on points, as well as having an effective expiration on the tier, is one thing that we want to put in place for this program just to manage our liability. But in addition to that, it also gives us something to, again, communicate to the customer with. So, "Your tier's coming up for expiration. You have 30 days left in this tier to take advantage of these benefits. Your points for coming out are coming up for expiration. You have 30 days left to use these points. And by the way, you have a $10 reward on your next purchase."

So these are all great forms of communication-based around the fact that we have some sort of expiration on our points, as well as our tiers. So we can use that as a lever to pull those customers back to make their next purchase.

Another feature we think is really great to add is creating your program as an explicit program, as we call it. So you have to opt into the program or enroll in the program to become a member and this really allows you to target your audience when it comes to members and non-members. And it allows you to focus your communication to members on loyalty offerings, and it allows you to focus your communication on non-members to reasons why they should become a member in the future, the benefits of the loyalty program, and these are things that you could take advantage of if you did opt-in and enroll in that.

So having an explicit program versus maybe a program that's implicit where anyone who takes any action, purchases creates an account, subscribes to a newsletter, they're part of the program, right? That makes communication a little bit more difficult to effectively target your messaging in segmented form and in a segmented way. And with all this messaging, I mean, the last effective, very effective customization for your loyalty program is linking up and integrating that loyalty vendor. In our case Annex Cloud with your chosen email service provider, so your chosen ESP, and we do this integration with a number of different ESPs for our clients.

So we can feed this loyalty data directly into their email service provider so they have all of these different data fields, whether it's available points, available rewards, points that are coming up for expiration. All of these data fields that you can now use for those effective loyalty messages and that effective marketing from that perspective. So these are some great customizations that we feel should be added to your loyalty program. Some things that we feel make it more effective for marketing and better to communicate with your customers at the end of the day.

Thanks. And please let us know if you have any questions.

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