A successful loyalty program is one that makes the overall brand experience better—as perceived by your customers. There’s significant opportunity to drive business growth, retention and customer satisfaction through loyalty programs as only 22% of Members felt their experience was better than non-Member customers. Only 29% felt the program made their experience with the brand better.
A message-enabled loyalty program can change this. Research conducted by C3Interactive found that 9 in 10 consumers prefer to interact with a brand’s loyalty program via text message. In fact, the study found that 64% of brands reported an increase in loyalty program membership and attributed it to the addition of mobile components, such as messaging.
Brands also reported that 27% of loyalty communications were experienced via SMS. While you may think that dividends, such as rewards and earning points are the highlights of a loyalty program, experience with the program was rated by consumers as the highest driver.
Take a look at the top five drivers of consumer satisfaction with loyalty programs and you’ll see four are based on experience rather than dividends.
Research also finds that anticipation of redemption is just as satisfying as redeeming the reward. But 57% of Members admitted they had no idea of their points or what they could do with them.
Thirty-four percent of Members admitted they also did not have a redemption goal. With no intended use for their accumulating points, satisfaction with the loyalty program dropped to 43% for these Members.
Surprisingly, Members are most vulnerable to attrition after redeeming a reward. Receiving the reward can literally be a let-down which means you need a messaging plan to keep them engaged and get them to begin anticipating their next redemption goal.
Customer experience is critical to customer loyalty and longevity. A message-enabled loyalty program allows you to be more responsive and relevant by incorporating personal details and addressing known preferences.
A messaging automation platform, integrated with your CRM provides a 360 degree conversational history of all incoming and outgoing messages giving you greater insights into what engages and drives repeat customer purchases and loyalty. By focusing your loyalty program on messages that drive improved experiences, it’s also possible to compete against other brand programs that offer richer dividends. Since 76% of Members agree that the program is part of their relationship with the brand, it’s a solid goal to prioritize improving your customers’ experience with messaging.
 The Loyalty Report 2017