Marketing Strategies

4 steps to creating a customer-centric loyalty program

According to Bain & Company, in conjunction with Harvard Business School, a ‘5% increase in customer retention can increase a business’ profits by as much as 95%.’ By leveraging multiple channels and customer data within a scalable loyalty program framework, brands can build a personalized relationship with their most loyal customers which will increase retention. With customer engagement top of mind for marketers today, brands should create a customer-centric vision for their loyalty program.

Focus on these four key elements when developing your loyalty program:

1. Continually keep the overall customer experience top of mind

A loyalty program should engage and enhance the customer’s experience, add real value and provide personalized communications and offers.

2. Utilize a multichannel approach

Don’t limit the customer experience; consider communication opportunities across all marketing channels.

3. Capture loyalty touch points across the following communication types:

  • Enrollment Communications: touch points that promote and propel joining the loyalty program
  • Lifecycle Communications: touch points that address the loyalty program lifecycle – welcome, early activation and life events
  • Base Promotional Communications: on-going loyalty promotional opportunities based on a promotional calendar
  • Status Communications: touch points focused on loyalty member status
  • Usage & Balance Communications: touch points that encompass loyalty reward usage and reminders
  • Earnings & Redemptions: touch points that address loyalty reward earnings and redemptions

4. Highlight opportunities to leverage customer data

Plan to incorporate personalized and dynamic loyalty offers and touch points (even as a future consideration).

A thoughtful customer-centric vision, combined with actionable data, can provide insight into the opportunities and communications for launching or optimizing a brand’s loyalty program. This framework can be the cornerstone for implementation and planning efforts, to ensure your business builds a truly robust customer driven loyalty program.


Kimberly Snyder
Sr. Marketing Strategist

As a Sr. Marketing Strategist at Data Axle, Kimberly helps clients develop and optimize best in class customer marketing communication strategies. She creates robust omni-channel program visions, capturing the customer experience and leveraging customer data, to create personalized and relevant lifecycle strategies. She applies her vast marketing experience, running multiple IR500 programs, to propel her clients' programs' KPIs quarter over quarter. Follow her on Twitter @kimberlysnyder - it's worth it - she was recently named among the ‘75 Email Marketing Influencers You Need to Follow’ by Atomic Reach.