Actionable Optimisation

Actionable Optimisation #6 – Create Engaging Loyalty Programs

 June 8, 2020

By  Will

Improve Retention With An Engaging Loyalty Scheme

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Loyalty Programs have been around for years, and we’re all probably members of half a dozen of them that we’ve forgotten about. And thats the problem with them these days. Almost none of them are memorable.

Tesco and Nectar are probably the 2 biggest in the UK, with 65% and 58% of UK adults each, and while both are the same, one in my opinion has the advantage, and that’s Tesco because it uses the company name. Nectar tried to be bigger by being a network, but the problem there is you have to remember who is on that network to be able to claim and redeem points.

These loyalty schemes also work because the members shop at the same stores weekly, if not daily. I have 2 Tesco’s near my flat, so its easy to get into the habit of scanning my card, and Tesco sends me the vouchers in the post.

It’s not the same for a lot of other businesses though. How many businesses do you regularly buy from, and spend more than £250 a year at?

The problem with most loyalty schemes is that you don’t have any incentive to purchase more. You collect your points whenever you spend, and eventually you have enough for vouchers.

Good loyalty schemes drive incremental revenue. As mentioned in Episode 1 of the Customers Who Click podcast, the problem with coffee shop schemes is that they’re just giving you a free coffee that you would have bought anyway.

Create excitement with the rewards you give. Give your customers exclusive products, special discounts, access to events or the chance to meet the person responsible for the products they love.

You can also vary the way people earn points, it doesn't have to be just for spending. Give people points for following you on social media, points when their friends spend money with you, points for filling in surveys or sending in pictures of how they’re using your products.

It’s a loyalty scheme for a reason. You want to build a base of engaged, and loyal customers.

Engaging loyalty schemes


Will is a Customer Journey Marketing consultant, specialising in CRO, CRM and Customer Experience. Will has over 7 years experience working across a range of consumer facing businesses and has worked for huge brands such as MyVoucherCodes, Europcar, JackpotJoy, Virgin Games and Virgin Bet.


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