Maximizing Loyalty ROI in Uncertain Times: Tactics for Loyalty Managers

We see you. Navigating loyalty programs in today’s unpredictable economy feels like walking a tightrope-balancing shrinking budgets, rising customer expectations, and the pressure to prove ROI every single day. You’re tasked with keeping customers engaged and loyal, all while economic uncertainty makes every decision riskier.

The good news? You don’t have to go it alone.

In the recent Maximizing Loyalty ROI in Tight Markets webinar, Alex Tavera, Head of Strategy at Annex Cloud and Jodi Rausch, VP & Managing Director of Loyalty Solutions at Concentrix, shared hard-hitting, practical strategies designed specifically for loyalty managers who need to drive meaningful results now and build resilience for the future.

Here’s your tactical playbook to not just survive but thrive in challenging markets.

1. Make retention your north star

“It will always cost more to acquire a new customer than it will to retain one. In times like this, when marketing dollars are tight, shifting focus from acquisition to retention is critical.”

– Jodi Rausch

• Audit your onboarding: Ensure new members receive a clear, value-driven communication plan in their first 30 days. A welcome bonus or fast-track to first reward can boost early engagement.
• Hear your customer: Regularly gather feedback from top-tier and near-VIP members to understand what keeps them coming back-and what might drive them away.
• Spot at-risk customers: Use predictive analytics to identify signs of churn early and intervene with personalized offers or outreach.

2. Personalize and segment for impact

A one-size-fits-all approach won’t cut it. Segmentation and personalization are essential for making your members feel recognized and understood.

“One of the top responses we saw from a new tiering strategy was that customers appreciated just getting status and recognition. It costs nothing to tell someone they’re VIP or Gold, but it builds trust and emotional connection.”

– Alex Tavera

• Behavior-based journeys: Create communication tracks for redeemers vs. non-redeemers, high-value vs. occasional customers, and tailor rewards accordingly.
• Dynamic content: Use email and app notifications to show members their current point balance, progress to next reward, or exclusive offers-making the program feel relevant and immediate.
• Tiered recognition: Implement or enhance status levels that reward not just spend, but engagement and advocacy (e.g., referrals, reviews).

3. Deliver value beyond discounts

In a price-sensitive market, it’s tempting to lean on discounts, but emotional loyalty and unique experiences drive longer-term results. There are plenty of other ways that your brand can amplify your value proposition outside of discounts.

“There are so many ways to show value beyond discounts—community, convenience, early access. During the pandemic, curbside pickup was a massive shift. What’s the ‘curbside’ of this downturn that you can offer your customers?”

–Jodi Rausch

• Non-monetary perks: Offer early access to restocks, exclusive events, or members-only content. These benefits foster a sense of belonging and recognition.
• Strategic partnerships: Collaborate with complementary brands to create unique reward options or bundled experiences, expanding perceived value without heavy cost.
• Convenience features: Streamline redemption, offer flexible payment or pause options, and make it easy for members to engage even when spending slows.

4. Test, learn, and optimize relentlessly

What used to motivate your customers might not move the needle anymore. In order to find out what will, test and learning is the best approach to seeing what sticks.

“We encourage brands to test and learn about offer types. Triple points often cost less than big coupons and encourage repeat purchases, while blanket discounts tend to attract one-and-done buyers.”

– Jodi Rausch

• A/B/C/D test everything: From offer types (percentage off vs. bonus points) to messaging and timing, use data to find what works best for your segments.
• Monitor engagement: Analyze email heat maps, open rates, and redemption patterns to spot trends and optimize campaigns in real time.
• Quarterly feedback: Survey your most valuable members to keep a pulse on shifting motivations and preferences.

5. Leverage data across the business

Loyalty data is a goldmine—use it to inform not just marketing, but product, service, and CX strategies.

“If you have a strong analytics team, use predictive models to target incentives only to customers who will respond, avoiding mass promotions that erode margins.”

– Jodi Rausch

• Reduce friction: Review the digital journey for login, redemption, and conversion pain points, and remove barriers to participation.
• Cross-functional collaboration: Share insights with other departments to align on customer priorities and maximize the impact of loyalty-driven initiatives.
• Propensity modeling: Work with analytics teams to predict future behaviors and personalize offers to drive incremental value.

6. Don’t ignore the power of advocacy

When CAC rises, your most loyal members are your best (and most cost effective) marketers.

“Referral incentives are a great way to leverage your existing customers and data to grow loyalty without high acquisition costs.”

– Jodi Rausch

• Referral incentives: Reward members for bringing in friends—word-of-mouth is especially powerful when acquisition budgets are tight.
• Community and social engagement: Foster a sense of belonging through online communities, exclusive groups, or social challenges.

7. Keep the value proposition front and center

Your loyalty program is an invitation to communicate and deliver value to your members. In uncertain times, you need to focus on amplifying your value proposition wherever possible.

• Promote premium options: Highlight loyalty-linked credit cards or paid memberships to deepen engagement and increase customer lifetime value.
• Communicate consistently: In times of uncertainty, proactive, transparent communication builds trust and keeps your brand top of mind.

Economic downturns are a stress test for loyalty programs, but also an opportunity to double down on what works. By prioritizing retention, personalizing experiences, delivering unique value, and relentlessly optimizing, loyalty managers can not only weather the storm, but emerge stronger.