In the previous article, we discussed key strategies businesses should consider when marketing their card–linked customer loyalty program. Getting as many eyes as possible on your program is crucial to increase sign-ups and the overall success of the program.
However, once some time has passed, it is important to continue to monitor program performance. This could mean tracking KPIs, customer feedback or other key data sources to get a reliable and holistic view of your program. Understanding these metrics can help your business adjust your program, and increase the overall adoption rate.
In this article, we will discuss ongoing practices to maintain a successful card-linked loyalty program.
Understanding card-linked loyalty programs
As a quick refresher, card-linked loyalty programs have become an integral part of modern customer engagement strategies. These programs allow customers to automatically earn rewards or access special offers by linking their payment cards to a loyalty program. This seamless integration of rewards with everyday spending simplifies the customer experience and increases participation rates.
For businesses, card-linked loyalty programs offer a wealth of opportunities to drive customer retention, boost sales, and gather valuable data on purchasing behavior. Olive, a leading platform in this space, provides businesses with tools to manage, optimize, and track the performance of their card-linked loyalty programs. This guide will explore best practices, goal-setting strategies, and tracking methods to ensure your loyalty program is a success.
For a better understanding of card-linked customer program and its benefits be sure to check out: https://blog.oliveltd.com/card-linking-a-mainstream-strategy-for-engaging-customers-and-driving-growth
Key metrics to track
Monitoring specific key performance indicators (KPIs) is essential to gauge the effectiveness of your card-linked rewards program. By tracking these metrics, businesses can make data-driven decisions to optimize their programs for better results.
Enrollment rate
The enrollment rate measures the percentage of eligible customers who sign up for your loyalty program. It is calculated by dividing the number of enrolled customers by the total number of eligible customers and multiplying by 100 to get a percentage.
Example: If you have 10,000 active cardholders on your platform and 1,000 of them sign up for your program, your enrollment rate is:
This metric is crucial as it reflects how well your program resonates with your target audience. A low enrollment rate may indicate issues with awareness, enrollment complexity, or perceived value of the program.
Redemption rate
The redemption rate represents the percentage of earned rewards that customers actually redeem. It is calculated by dividing the number of rewards redeemed by the total number of rewards issued.
A high redemption rate suggests that customers find the rewards valuable and are actively engaged with the program. Conversely, a low redemption rate may indicate that the rewards are not appealing or that the redemption process is too complicated.
Retention rate
Retention rate measures the percentage of customers who continue to participate in your loyalty program over a specific period. It is an indicator of customer loyalty and satisfaction with the program.
A high retention rate means customers are consistently finding value in your program, leading to repeat engagement and long-term loyalty. Monitoring this metric helps identify trends and factors that contribute to customer churn.
Overall satisfaction
Overall satisfaction is a qualitative metric that gauges customers' general contentment with your program. This can be measured through surveys and feedback forms to gauge how customers are enjoying the program. And gives opportunities for practice
Understanding overall satisfaction helps identify strengths and weaknesses in your program from the customer's perspective. High satisfaction levels are often linked to increased customer loyalty and advocacy.
Reasons why your card-linked program may not be performing
While card-linked programs offer numerous benefits, several factors can hinder their performance. Identifying and addressing these issues is crucial for maximizing the program's effectiveness.
Lack of customer awareness
If customers are unaware of the program or its benefits, participation rates will be low. Ineffective marketing strategies or insufficient promotion can lead to a lack of awareness. Ensure that you communicate the program's value proposition clearly across multiple channels, such as social media, email campaigns, and in-store signage. Giving a reason why people should sign up is important. The benefit of a card-linking program is the ability to link customer’s everyday spending with their financial goals.
Complex enrollment process
A complicated or time-consuming enrollment process can deter potential participants. If linking cards or understanding how to earn rewards is cumbersome, customers may abandon the process altogether. Streamline enrollment by reducing the number of steps required and offering clear, concise instructions.
Limited offer relevance
Card-linked offers are only as good as they are relevant to the users. Some key questions to consider are:
- Where is my audience shopping most frequently?
- Do customers want dining?
- Is there a geographic overlay?
- Are the offers close to me?
These are all questions to ensure the offers resonate with your customers. One of the strengths of Olive's platform is the ability for businesses to leverage new AND existing offers. Have offers of your own? No problem. Ensuring a diverse range of offers with compelling rewards like cashback is key to keeping your customers engaged for the long run.
Macroeconomic pressures:
The border economy can have significant impacts on customer spending. Inflation rates, interest rates, and unemployment rates are all factors that can impact how consumers shop. However, with card-linked programs, it can strive even during economic downturns. This is why communicating the value of card-linked programs to your audience is key.
Currently, customers are more conscious about their spending and are reducing their overall discretionary spending. This behavior is driven by inflation concerns and economic uncertainty. However, 81.4% of loyalty program owners confirmed that their programs were helpful during the economic downturn, highlighting their importance in maintaining customer engagement and loyalty during challenging times. Of all the credit card’s value-added features, 30% favor rewards and cashback over tracking and managing features such as transaction monitoring, autopay, and mobile apps.
Keep customers focused on what matters
One of the most important features when it comes to card-linking technology is the ability to link rewards to customer financial goals. One of the most important features of card-linking technology is the ability to tie rewards directly to customers' financial objectives. Businesses can deepen customer engagement and loyalty by offering incentives that contribute to long-term financial well-being—such as automatic savings, investment contributions, or debt reduction.
Ensuring your platform is set up the right way to make it easy for your customers to track their progress in real-time can keep them motivated. This is why Olive's platform can help your business setup simple dashboards, like enrollment status, past transactions, total rounded amount and rewards earned are the basics to ensuring your program is running smoothly. However, businesses have the option to take it even further and design a more compelling user interface.
Providing personalized insights and recommendations can enhance the value proposition of the rewards program. Tools that give a better picture of spending habits, goal setting and progress, foster a sense of partnership between businesses and their customers.
To learn more about Olive's card-linking platform and to see it in action be sure to reach out to specialist today.