Action

An action refers to a specific behavior or activity that a customer undertakes, which the program recognizes and rewards. These actions are defined by the business running the program and are designed to encourage desired customer behaviors that align with business goals.

Here’s a breakdown:

  1. Defined Behavior: The business explicitly states what activities qualify.
  2. Customer Undertakes It: The customer performs the specified action.
  3. Triggers Reward: Successfully completing the action triggers the loyalty program’s reward mechanism (e.g., awarding points, applying a discount, granting a perk, moving towards a tier).

Purpose of Defining Actions

  • Drive Specific Behaviors: Encourage activities beyond just purchasing, such as engagement, referrals, or data sharing.
  • Increase Engagement: Keep customers interacting with the brand between purchases.
  • Gather Data: Incentivize profile completion, surveys, or reviews.
  • Build Community: Reward social sharing or referrals.
  • Promote Products/Services: Encourage trial of new offerings or specific product lines.
  • Increase Customer Lifetime Value: Foster loyalty and repeat interactions.

Common Examples of Actions in Loyalty Programs

  • Transactional:
    • Making a purchase (the most common action).
    • Spending over a certain amount in one transaction.
    • Purchasing specific products or categories.
    • Reaching a cumulative spending threshold over a period.
  • Engagement:
    • Signing up for the loyalty program.
    • Completing a customer profile.
    • Writing product reviews.
    • Following the brand on social media (e.g., Instagram, Facebook).
    • Sharing content on social media.
    • Referring a new customer who makes a purchase.
    • Downloading the brand’s mobile app.
    • Subscribing to a newsletter.
    • Visiting a physical store or website (sometimes tracked via app check-ins or logins).
    • Watching promotional videos or engaging with specific content.
  • Milestone/Event-Based:
    • Celebrating a birthday.
    • Reaching an anniversary of joining the program.

Essentially, an “action” is anything a loyalty program operator wants to incentivize a customer to do, linking customer behavior directly to rewards and benefits.