Improve your Rewards Program Using These Customer Loyalty Statistics

February 22, 2018
Feature Image

If your rewards program isn’t performing as well as you originally expected, don’t worry! We’ve analyzed customer loyalty statistics and developed a few actionable tips that will maximize the effectiveness of your program.

Gamify Your Program Using VIP Tiers


Customers aren’t motivated to participate in your loyalty program. This disinterest can result in lower engagement and redemption rates.


Gamify your rewards program using elements originally designed for video games, such as progress bars and milestones.

According to a study by Colloquy:

Nearly 1 out of 4 millennials would stay in a loyalty program because it has a competitive game or social aspect.

The easiest way to add this type of gamification into your rewards program is by adding VIP tiers. As customers earn more points or spend more money at your store, they have the chance to move up the ranks through different tiers, unlocking higher rewards and social status.

Elf Beauty Squad Tiers

The e.l.f. Beauty Squad rewards program uses VIP tiers to engage their audience and motivate them to continue through the ranks. Without tiers, e.l.f.’s most loyal customers would not be able to boast about their social status, which is a very important factor in the cosmetics industry.

This type of motivation can make all the difference for your rewards program, no matter which industry you’re in.

Offer More Ways to Earn Points


Traditional loyalty programs bore customers by only rewarding points for purchases.

Since today’s brands are creating more engaging customer experience, customers now expect to be recognized for all of the other ways they are interacting with your business.

57 percent of American consumers will abandon a loyalty program if it took too long to earn points.

When you acknowledge nothing but your customer’s purchases, you limit the ways they can earn points and find value in your rewards program, prompting customers to rethink their membership.


Start rewarding your customers for registering an account, sharing your store on social media, or even celebrating a birthday to ensure they don’t get bored with your rewards program!

Erin Condren Rewards Program

Erin Condren has not only provided their customers a healthy variety of ways to earn points, but even encourages them to share on social media each month for an additional 50 points! In this way, the EC Insider program allows Erin Condren to build loyal customers who are continuously hungry for more points.

It’s extremely important to remember that your customers are not earning points for the sake of collecting points - they are collecting them to claim rewards. If it takes too long for them to redeem the rewards, they will abandon your program.

Give Your Customers What They Want: Rewards


Customers aren’t able to redeem rewards, which means they can’t see the value in participating in your program. HelloWorld found that a whopping 53% of people report that it takes too long to redeem rewards in most loyalty programs, and this is one of the biggest mistakes we see with reward programs.

53% of people said it takes too long to actually redeem rewards.


Since customers are joining your rewards program to earn rewards, not points, lower the point requirement to redeem your rewards or add rewards with a lower points redemption requirement.

Erin Condren Signup Reward

Erin Condren rewarded me with a $5 coupon just for signing up, which shows they are serious about giving me rewards. If I had to spend $100 just to receive a $5 off coupon, I would be much less likely to continue trying to earn points!

You also need to ensure that customers actually want the rewards you’re offering. After all, rewards are your program’s motivator! If you’re not sure what they’re looking for, just ask.  Customers always appreciate knowing that you have their best interests in mind, and would love to be included in these types of decisions.

Is your reward redemption rate healthy?
Redemption rate has a huge impact on the success of your rewards program! Learn how to calculate the rate at which people are redeeming rewards.

Make Your Signup Process Quick and Easy


Signing up for most reward programs takes too long, with many customers reporting that brands are asking for too much information as part of the registration process.

62% of customers still believe too much information is required to sign up for loyalty programs.

Although it can be tempting to collect every single piece of information about your customer, this makes your signup process complex and drives potential customers away.


Stick to collecting only essential information, such as name and email address. This will keep the signup process super simple and will create a much better enrolment experience.

Klova Signup Process

Klova does a great job of maximizing the number of customers who sign up for their rewards program by only requiring shoppers to fill in four simple fields. How many times have you tried to sign up for something but immediately left the page once you saw 10+ fields to fill out? Replicate Klova’s signup experience and you will find that the number of people registering an account at your store will increase.

Leverage Email Marketing to Revive Your Inactive Members


Many customers join loyalty programs and then never use their account again. These inactive customers have an account, maybe earned a few points, but never came back to earn more or redeem any rewards.  

54% of loyalty memberships are inactive.


Send email reminders to your customers that let them know how close they are to their next reward. Customers will be more motivated to reach a goal when the finish line is in sight. Reminding customers that a reward is waiting for them will give them the boost they need to once again push to reach that finish line.

Mouth Reward Program Point Reminder Email Example

Mouth does a great job of reminding me how close I am to earning my next reward. Even if I totally forgot about their rewards program, receiving this email reminds me to go back and earn just 17 more MouthBites to receive my $10 reward. This sounds both extremely doable and very appealing, prompting me to get earning!

Use email marketing campaigns to remind your customers that they are really close to their next reward. It will also remind them that abandoning the program would be a total waste of their time, since they already put in the effort to get to the point they’re at now.

Get the Data Working in Your Favor with an Effective Rewards Program

By incorporating these five solutions into your rewards program, you can begin to improve the effectiveness of it. Remember that running a rewards program is not a set-it and forget-it solution to customer retention, but is an ongoing process. So don’t get discouraged! Try simplifying your signup process, sending out a points balance email reminder, or offering more ways to earn points and you should start seeing the improvements you’re looking for.

Is your rewards program underperforming?
Get all the expert advice you need to boost your customer engagement and make your rewards program extremely effective.