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It's always a good idea to revisit your loyalty program structure and perks to answer this question: "Is this program still relevant and exciting for my customers?". Because customer preferences change, and customer demographics shift (there are about 80 million Millenials rapidly taking over from the baby boomers), you'll want to ensure you're always relevant to your audience. If you don't know what your customers want, just ask them! A simple survey with just a few key questions can help you identify what they love about your program and what they would like to see in the future. A customer loyalty survey by COLLOQUY reveals the top reasons customers engage with loyalty programs and also why they may stop participating. 

The Two biggest reasons members continue to participate in loyalty programs:

1. The program is easy to understand (87%)
Ensure your programs structure is easy to follow so customers clearly understand how to earn points and what rewards they can redeem. Try to keep rules simple so customers don't become frustrated.

2. The rewards/offers are relevant (75%)
Ensure you're offering some great perks that your customers actually want. Exclusive rewards are more enticing where the customer can eventually earn something that they cannot buy such as a VIP invite to a special in-store event, or free coffee for a year.  

The main reasons loyalty members stop participating: 

1. Did not provide rewards/offers that interest me (56%)
If there is little incentive for customers to participate, they'll stop caring about earning points and engagement will fall off. If you're not sure what type of rewards your customers want to see, just ask them in a brief survey. They'll be happy to tell you what they want and impressed to know that their feedback is making a difference in the program.

2. Too hard to earn points for rewards (54%)
If your reward items are not attainable, customers will lose interest. If they shop with you regularly but it takes them a year to earn a $2 coupon, the program will lose value for them. 

92% of program members described their participation as either "fun" or "economical".
Does your program fit into one of these categories - or both? Keep communication open with your customers and you'll receive great feedback about what they like and what they would love to see from your program!


Stats from "Customer Loyalty in 2015 & Beyond" - Colloquy