The Challenge of Disengagement
Most loyalty programs have an engagement problem. On one hand, the average number of total loyalty program memberships rose 28% from 2019 to 2024, and the number of active memberships rose 39%. Yet, despite the surge in participation, a surprising statistic reveals that members only
actively engage with half of the programs they join.
The Solution for Lasting Loyalty
So, how can you reverse disengagement and capture the long-term focus of your loyalty customers? The answer lies in refreshing and recharging your rewards.
The goal isn’t to spin up a “better offer” or quick fix—it’s to infuse more value into your reward experiences and drive genuine interest. When interacting with your loyalty program leads to desirable perks, engaging is an offer they can’t refuse.
Revitalize your customer loyalty program and turn passive membership into active engagement with these strategies.
3 Tips to Recharge Loyalty Program Engagement
Engagement Recharge 1: Personalize the Experience
Gone are the days of generic rewards—today’s savvy consumers crave personalization. While discounts and freebies are core elements of most loyalty programs, they’re no longer enough to keep customers coming back. Let’s face it: this transactional approach can be fragile. Competitors are always lurking, ready to steal customers away with a sweeter deal. To build deeper loyalty, you must move beyond simple transactions to create a lasting relational connection.
Personalization is the key to turning customers into raving fans. To truly engage your members, you need to understand their unique desires and tailor their rewards.
We’re talking about more meaningful personalization than simply addressing customers by name and segmenting by basic demographics. Leveraging the power of data and artificial intelligence, you can create hyper-personalized offers.
By analyzing purchase behavior, point redemption history, and customer survey feedback, you can get the right offers in front
of the right people to maximize engagement.
Take Personalization to The Next Level with Concierge Services
Imagine this: your most valued customers have a personal shopper dedicated to fulfilling their every wish—and they can use their loyalty points to make it happen.
That’s the power of a concierge service.
Whether it’s finding the perfect engagement ring, designing a dream kitchen or dazzling an aspiring musician with an electric cello she’d only dreamed of, a dedicated concierge can curate highly personalized experiences or products based on members’ unique wants. This type of service reinforces the emotional connection between customers and your brand. And it can be one of your best strategies to create lifelong advocates.
Engagement Recharge 2: Expand Your Flexible Reward Options
In-kind rewards are great, but they don’t cater to every customer. If that’s the only reward option, you’re leaving engagement opportunities on the table. For broader appeal, offer a diverse range of redemption options. Gift cards and merchandise provide variety, flexibility and affordability, making them attractive to a wider audience.
- Consider the needs of your customers. A “road warrior” business traveler might prefer local gift cards for dining with family over more travel rewards. By offering a variety of choices, you empower customers to spend their points in ways that align with their lifestyle and preferences.
- Introduce flexibility. With a wider range of price points, gift cards empower customers to experience the joy of redemption earlier and more frequently in the program.
- Use rewards to help manage costs. Merchandise and gift cards have a more predictable value that in-kind rewards, which can fluctuate based on market conditions. If cost-per-point is important to your business these expanded options can save you money.
Engagement Recharge 3: Create Unforgettable Experiences
Experiences are the ultimate reward. They create lasting memories and foster a deeper connection with your brand.
Complement traditional travel offerings, like airfare and hotel options, with true one-of-a-kind rewards to elevate your loyalty program. From exclusive events and VIP access to once-in-a-lifetime adventures, these unparalleled opportunities create lasting customer relationships.
By analyzing purchase behavior, point redemption history, and customer survey feedback, you can get the right offers in front of the right people to maximize engagement.
The value of experiential rewards:
- 91% of consumers say that participating in brand events and experiences makes them more inclined to purchase.
- Unforgettable moments boost customer satisfaction and generate valuable word-of-mouth marketing.
- Experiential memories create a halo effect on your brand. From anticipation to immersion to reminiscence, every moment has a lasting impact – an impact the member is likely to share with others.
How Do You Add Experiences to Your Reward Mix?
Coalition programs are another opportunity to consider. Think about joining forces with other brands that are complementary to yours to design unique experiences for your members. For example, a travel company could partner with a concert promoter to offer VIP packages.
Another great option is working with an experienced reward partner who can connect their experiential catalog with your loyalty program.
A father turned his hotel points into an unforgettable experiences for his daughter, taking her to a sold-out concert by one of the most iconic pop stars of our generation.
An airline program member unlocked an exclusive event by reaching a loyalty milestone, gaining a true VIP experience.
A horse enthusiast with a modest point balance couldn’t travel fat but discovered a local rodeo through the loyalty program’s concierge, turning points into passions.
Power Up Your Loyalty Program, Drive Enduring Engagement
The purpose of recharging engagement is to create a loyalty program that truly delights your customers. By personalizing the experience, expanding your reward options and delivering unforgettable experiences you can build a loyal customer base that will tick with your brand for the long haul.
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