Simple

Earlier this week, our team was on a call with a new customer and the topic of why they switched to Stamped came up. 

The answer was interesting to me, because it boiled down to this: They wanted their program to make more sense to their customers.

Now, part of that isn’t actually Stamped-specific: You can create a simpler, easier-to-understand loyalty program with any vendor. But if you look around at most loyalty programs, they’re rarely simple.

In a way, the appeal of more complex loyalty programs makes sense. You’re attempting to gamify earnings with tiers and offer more value to more loyal customers, all while trying to protect your margins.

But that complexity comes at an expense. And I think this might be part of the reason—I don’t yet have any data to prove this—why so many brands end up frustrated and discouraged by their loyalty program’s results: If it’s hard for a customer to understand what they’re getting from your program, then what good is it for them to even pay attention to it?

Simplicity, then, might be something worth exploring. And there are “simple” ways to get there. 

Simplify Earning Rules

Too many different ways to earn are confusing. Keep it simple and optimize to what you’re looking to achieve. Focus your program on transactions and transaction value.

Similarly, make it easy for a customer to understand how much they’re earning. You can set earning rules so that, say, each dollar spent translates into 10 cents in reward value. This is especially true when it comes to tiers and points multipliers: 1.5X, 2X points, etc … All of that is confusing. Just tell people instead that, instead of earning 10 cents per $1, they get 15 or 20 cents or whatever the case may be.

What value ratio you use is up to you and the specifics of your business, but use round numbers to keep it all easier to understand.

Make Rewards Easier to Understand—And Use

One type of reward is probably enough, but if you go with more than one, make sure to be specific in the value.

So, for example, if you use a rewards banner in email to remind customers how many points people have, stop talking in points. Instead, tell them they have a “10% discount waiting,” for example, or that they’re “one purchase away from $20 in store credit.”

Both are tied to real value and leverage traditional merchandising offer language. It’s easier for someone to translate in their head and decide when to use. 

Making Your Tiers Straightforward

If you do go the tier route, what you offer in those tiers can get unwieldy. It usually starts with points multipliers, free shipping and early access to sales. But tossing them all in? It gets hard to track. 

Pick one or two—especially outside earnings rules—to make tiers more valuable. Maybe it’s early sales access or free shipping. But keep the add-ons short, so people can better comprehend the differences.

There is, too, an advantage for you: Simplifying the program for your customers also simplifies the number of variables you need to consider when executing and measuring success. Keeping it simple means you can better promote the program with fewer edge cases, which means you’ll drive more participation—and more value.