6 Criteria for Assessing Your Loyalty Program Value
Only one of them involves monetary value
According to the 2020 State of Loyalty Report from Bond Loyalty, US consumers belong to an average of 14 loyalty programs but are only active in about half of them. What makes consumers actively participate in some programs and not others? First and foremost, consumers need to see value in using the program; not just monetary value, but the overall value provided by the program.
If your business offers a loyalty program, you must regularly audit the value provided by your program in order to create sustained engagement with your current and potential program members. This is especially critical if you have recently made changes to your program or are about to implement changes.
A classic loyalty program article in the Harvard Business Review offers a very useful framework for assessing loyalty program value. In this article, we remix this classic framework to offer six criteria you should consider in evaluating the value of your loyalty program. We illustrate how several well-known loyalty programs fare on these criteria.
Criterion #1: Cash Value
This first criterion is a no-brainer. It is the financial value consumers receive from participating in your program.
