Your customers aren't redeeming their loyalty rewards. How can you re-engage them effectively?

Yikes! If customers aren’t redeeming their loyalty rewards, the reality is what you’re offering just isn’t cutting it. The key is to make your loyalty program so irresistible that customers can’t help but engage. Look at United Airlines: their program might be complicated, but people rave about it because the rewards are phenomenal. It’s not just about clarity; it’s all about the payoff. So, revamp your loyalty program! Make it a no-brainer that customers will love. Don’t be afraid to sacrifice a little profit to win over those repeat customers—after all, bringing in new ones costs way more. Make your loyalty program fun and easy, and trust me, your accountant will thank you!

If customers aren’t redeeming their loyalty rewards, the key is to make the rewards more enticing and accessible. At FAM, we’ve found success by simplifying the redemption process—ensure it’s easy to understand and convenient to use. Next, re-engage with targeted reminders or time-sensitive offers to create urgency. Highlight the value of the rewards, whether through exclusive discounts or limited-time bonuses, and personalize the communication so customers see the benefit of redeeming. Sometimes, simply reminding them of what they’re missing is enough to get them back in the game.

Re-engaging customers who aren’t redeeming their loyalty rewards can be tackled through several strategies. I use the following: 1. Send targeted emails or messages highlighting their available rewards and how easy it is to redeem them. 2. Offer limited-time promotions for loyalty members. 3. Ensure the redemption process is straightforward. 4. Share stories or testimonials from other customers who have enjoyed their rewards. 5. Use surveys to ask customers why they haven't redeemed their rewards. 6. Keep customers informed about their points balance and upcoming expiration dates to create urgency. 7. Introduce elements like challenges or milestones to encourage customers. 8. Ensure that the rewards offered are appealing and varied.

I believe when customers don’t redeem points is because the program is unclear in what the rewards are and how to redeem them. I would first create very clear communication strategies about the program and then ensure that across all channels is promoted accordingly I would also send personalised comms with suggestions of what each customers can redeem based on previous purchase history