Why Personalization Drives the Most Effective Customer Loyalty Programs

Customer loyalty program membership has gone up, and yet the number of customers actively participating has gone down dramatically. A recent study of 28,000 consumers found that the average person is a member of more than 14 customer loyalty programs, but they are only active in about 50 percent of them. The discrepancy comes down to a problem of relevance. Traditional, generalized loyalty rewards are not viewed as relevant to consumers’ lives, which leads to declining engagement overall. When it comes to customer loyalty programs, it’s clear that one size does not fit all.

Brands need to recognize this problem and revise their programs accordingly. In my latest post at the RedPoint Global blog, I explain more and provide some advice for organizations seeking to drive the most value from their customer loyalty program.