5 Signs You Need a New Loyalty Platform

Loyalty isn’t one size fits all. It’s not even one device fits all. And chances are, if you’ve been settling for the same mediocre plan since your brand launched, your loyalty program could use a refresher.

Read below for five signs you need a new take on brand engagement.


Image source: Flickr, user: Joe Loong

1. Your points are a liability.

When it comes to a points program, there’s always liability.

You can undervalue your rewards and lose money when customers redeem their points. Or you can overvalue your rewards and lose customers to less inflated programs. And there’s always the risk that consumers will abandon the program if rewards are worth more points than the customer has the patience to accumulate.

2. Your program delivers delayed gratification.

When users must accumulate points to redeem rewards, they’re more likely to get frustrated, opt out or forget the program even exists. The redemption funnel becomes overly complicated, as users must earn points, launch the marketplace, browse the available rewards, choose the reward, claim the reward and then go back to their initial action. It should come as no surprise that brands often lose users in this funnel.

The image below is a great side-by-side comparison of how these systems work.

Point-based rewards vs. Moment-based rewards

Brands should simplify their funnel with instant gratification. Satisfy the thirst for immediate rewards with gift cards, free samples and so forth to keep purchasing intent active. If customers can use the reward they’ve earned right away, they’re more likely to keep coming back to your brand.

3. You incentivize consumers to use your brand.

Incentivization doesn’t drive loyal consumers.

Instead, enable users to earn rewards that satisfy real-time needs. Discern which moments users are most engaged and tailor rewards to fit that event. For instance, if a user checks into an airline’s app to discover their flight is delayed, swoop in to offer them a free lounge pass. It isn’t about motivating them to use your brand in the first place, but reminding them why their loyalty is important.

4. You haven’t scaled your program.

Successful brands recognize engagement opportunities across all connected devices: from mobile to web, smartwatches to fitness trackers and connected devices in the home and car.

Don’t limit your reach to only one of those screens. This is the era of the connected generation, where you can transform anyone with access to connected devices into a loyal customer.

5. You’ve limited your targeting to existing customers.

Most loyalty programs only target existing users. Expand your audience with a program that enables you to reach interested users on social and bring them into your brand-owned mobile app.

When you locate users talking about your brand, you can turn their happy (or sad) moments into engagement opportunities. For instance, a coffee shop could reward a consumer who Instagrams latte art with a free drink. Users share positive brand experiences across social networks, thereby giving inexpensive recommendations to friends.

One easy way to do this: automation. A program such as Kiip Platform enables brands to appear during these moments with no extra effort. You’ll become a social media hero without having to hire a new team of community managers.

Kiip Platform layers on top of your existing loyalty strategy, so you can reap the benefits of a customizable experience without a massive overhaul. Reach out to users in your brand-owned app or target them on social to re-engage them during moments relevant to your brand.

For more information about how Kiip Platform can give your loyalty a boost, check out this post.

Kiip redefines how brands connect with consumers through moment-based rewards. Rewards increase engagement and purchase intent, and 84 percent of mobile users say they prefer mobile rewards over ads.

Hundreds of brands already use Kiip. To learn more, visit kiip.me/brands.

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  • Dominik Bleilevens

    Very good article!
    I think you should add one more thing:
    If your rewards are only rebates and free things, you give your customers only extrinsic motivation: Saving money (and if it’s a points program, collecting points)
    Instead you should offer your customers a special experience, which they can only have with your brand. E.g. if you’re a coffee company, offer them free coffee tastings, in which they get to know what the essence of a good coffee is. By this they understand your products better, they are able to learn something, they have a good time – and they will connect all these positive emotions with your brand. By this you increase their loyalty, they are more likely to buy your products and they will tell their friends about the great experience.