Protect your loyalty program with the Loyalty Program Experience Index SPVx

For the past 10 years, the?For Love or Money? research has been tracking Australian loyalty program members’ view on which loyalty programs are ‘doing a very good job’.

In 2023, the?For Love or Money? ?research moved on from this benchmark, to provide more useful insights on how loyalty programs can improve.

Introducing The Loyalty Program Experience Index?SPVx

A new metric has been formulated to understand the members’ point of view of their experience with a loyalty program.

The Loyalty Program Experience Index?SPVx??is a rating of a loyalty program by its members based on their experience with the program weighted against three key variables of how Simple (S), Personal (P) and Valuable (V) the program is to them.

How Simple a program is to interact with -?Simple to understand, easy to join; easy to identify as a member; easy to earn and redeem rewards

How Personal the program is to members -?The communications are personalised, the rewards are relevant and members feel special

How Valuable a program is to members -?The rewards are meaningful, desirable and valuable to members

How are the definitions of Simple, Personal and Valuable formed?

Since 2013, the For Love or Money? ?research has been studying loyalty programs from the members’ point of view.

In those research studies we identified multiple dimensions of how members engage with programs and what’s important to them.?

How simple a program is, how personal it is and how valuable it is to members are key variables we have identified to optimise the loyalty program experience.

Based on these learnings, we created a standard and simple definition of each of the three variables for members of programs to assess their memberships on these variables.

Why are the three variables of Simple, Personal and Valuable selected as the basis of The Loyalty Program Experience Index SPVx??

Based on our 16 years of experience with designing and deploying loyalty programs of all types and structures, we identified the overall program experience was optimised by three key variables - how simple, personal and valuable programs are to members.

These three variables are key to loyalty program engagement and success.

NOTE:?While there are deeper layers behind each of these three variables, we have been researching these three variables in the?For Love or Money? research studies and have now integrated these into a loyalty program Experience Index SPVx, based on the members’ point of view.

68 Australian loyalty programs were scored with a Loyalty Program Experience Index?SPVx

In?For Love or Money? 2023,?68 Australian loyalty programs were scored by members based on the three key variables for optimising the loyalty program experience to calculate the Loyalty Program Experience Index SPVx.

The report provides more details on the four steps to calculating the Loyalty Program Experience Index SPVx.

The?For Love or Money?2023,?report is available as a?free Executive Summary, or the?comprehensive report?is available to purchase.

Have a happy loyalty day!

The Point of Loyalty?specialises in customer loyalty and Joyalty* program strategy, design and deployment, helping clients retain their best customers and grow the rest.?

Founder of The Point of Loyalty,?Adam Posner?is a customer loyalty specialist helping brands build thriving programs through his framework - 'Seven Zones of Loyalty Program Performance'.

He is author of the annual benchmark customer loyalty and loyalty program research study -?For Love or Money?now in its 17th edition.

He has developed the 'Six Currencies Loyalty Program members care about' now available as a?SPECIAL EDITION?of?For Love or Money??and the?'Four Factor Quality Program Proposition' framework?to increase member activity.

Adam has been involved in the design and deployment of loyalty and rewards programs and loyalty research across industries including entertainment, education, pharmacy, hotels, trade and various retail sectors.

The contents of this article are the opinion of the author. No responsibility for loss occasioned by any person acting or refraining from the action as a result of the material in this article can be accepted by the author.