What makes a good loyalty program?

Forrester Research recently released a report on something many marketers might be sleeping on—mattressesloyalty programs.

In 2020, Forrester noticed hundreds of brands across the globe reevaluating loyalty programs to meet pandemic-era demands, so it dug deeper to find out what exactly today’s consumer wants from one:

• A survey of more than 4,600 US adults found that two-thirds—65%, to be exact—agree that instant discounts are important elements of loyalty programs.
• 62% of the same group said “points, miles, or other loyalty currency” are important.

So, what makes a good loyalty program? According to Mary Pilecki, Forrester VP, principal analyst, and author of the report in question, it’s simplicity. Brands that operate “under the false pretense that abundance equals differentiation” create “unnecessarily complicated and therefore frustrating customer experiences,” the report reads.

Klarna’s Global Head of Shopping Growth Marketing, Jon Chang, agrees.

“Good loyalty programs are simple and powerful. So many loyalty programs try to gamify the experience to the point of confusion and exhaustion for the customer, or offer too many rules and exceptions or variations of point systems,” Chang told Marketing Brew. "If your customers don’t know how to use your loyalty program, then you’re doing it wrong."—PB