How well is your Loyalty Program performing?
You likely measure carded play, turnover, and visitation—valuable hard data. But while these metrics show you how many members are using their cards, what they’re spending, and how often they visit, they don’t reveal how your members feel about your loyalty program or how your benefits compare to your competitors. They don’t tell you what your members like—or dislike.
Clubs often dedicate a significant portion of their marketing budget to loyalty programs but may not fully understand their effectiveness. Research from Loyalty360 sheds light on what members really think and feel about loyalty programs, debunking a few common myths along the way.
Myth #1: Membership Equals Engagement
Simply signing someone up for your loyalty program doesn’t mean they’ll engage with it. While joining is the first step, retaining their participation is where the real work begins.
Why Members Don’t Engage (or Stay Engaged):
- 41% say benefits are too hard or take too long to earn.
- 22% find the program rules confusing or unclear.
- 19% feel there aren’t enough reminders or communication about the program.
- 18% think the program is boring.
- 17% don’t find the rewards appealing.
Takeaways:
To keep members engaged, make earning and redeeming rewards easy and intuitive. Clear communication about benefits and how to use them is essential. Consider offering smaller, more immediate rewards, such as F&B discounts or free entries, to maintain interest.
Engagement is especially critical in the first few months after a program launch or when a new member joins. Strengthen your onboarding process to ensure new members quickly understand and appreciate the value of your program.
Myth #2: Members Join Loyalty Programs for Rewards Alone
While rewards are a significant factor, they aren’t the only reason people join loyalty programs.
Why Members Join Opt-In Loyalty Programs:
- 43% Mercenary: To earn rewards.
- 37% Inertia: It was easy or automatic to join.
- 15% True Loyalist: They love the company, its products, and services.
- 3% Cult: They identify with the company’s purpose and values.
Over one-third of members join simply because it’s easy or automatic, particularly in programs tied to club membership. However, 43% of loyalty program participants admit they pay little to no attention to these programs, even when they actively opted in.
Takeaways:
This lack of engagement can be costly. If members don’t understand or value the program, it becomes a wasted expense. Tailor your program to your specific membership base and offer unique benefits to distinguish yourself from competitors.
The Power of Differentiation
Too many loyalty programs offer the same generic benefits, leaving members with no compelling reason to choose one club over another. However, customer surveys often show that loyalty program benefits are the number one reason members choose to visit one Club over another.
Understanding what your members want—and how your program compares to competitors—can lead to a more appealing program, a smarter use of marketing dollars, and, ultimately, increased profits.
Key Questions to Ask:
- Are your benefits relevant and desirable to your members?
- Is your program easy to understand and navigate?
- How does your loyalty program stack up against your competitors’?
By focusing on engagement, clear communication, and tailoring your program to your members’ preferences, you can turn a loyalty program into a powerful tool for driving repeat visitation, increasing spending, and building stronger connections with your members.
About the Author
Linda is a respected hospitality industry marketing specialist and creative consultant, having worked with many major Pub and Club groups across Australia for nearly two decades. Linda is a regular speaker and presenter at industry conferences and workshops, and at loyalty and player development seminars in the USA.
Throughout her career, Linda has acquired in-depth knowledge of Casino, Hotel and Club marketing, and was instrumental in designing and developing the first ever Club loyalty program, in addition to creating a VIP Host Management program.
