Three Actions You Can Take This Quarter to Fix Your Engagement
Published by Trisha Asgeirsson – President, SKUx
You don’t need an 18-month roadmap to address the rejection of your loyalty program. You need three tactical moves you can execute this quarter.
Action 1: Run a parallel instant reward pilot
Don’t overhaul your entire program yet. Test instant rewards alongside your existing system.
Pick one customer segment or one product category. Deliver instant digital rewards – $5-10 virtual prepaid cards – to customers who complete specific actions.
Run this for 60-90 days. Track three metrics: redemption rate, repeat purchase rate, and basket size versus control group. Our data shows 98% activation in under 30 seconds and 68% redemption. You’ll likely see similar results that prove the business case without risking your entire program.
Action 2: Audit your mobile experience ruthlessly
Right now, grab your phone. Try to sign up for your loyalty program, check your rewards balance, redeem a reward and use that reward at checkout. Time each step. Count how many taps, form fields, or screens it takes.
If any step requires more than three taps, that’s friction new customers won’t tolerate. If total time exceeds 2 minutes, you’re losing them. 43% abandon rewards requiring more than two steps.
Action 3: Make one reward instant
Pick your most common reward redemption. Make it instant.
If customers typically wait to accumulate 500 points, flip it: give them $5 instantly when they hit threshold. Auto-apply it to the next purchase or send a virtual card they can use immediately.
The measurement framework
For each action, track:
- Participation rate (especially 18-30 age group)
- Time to first redemption
- Redemption rate percentage
- Customer satisfaction scores
- Repeat purchase rate at 30, 60, 90 days
Compare these to your current program baseline. You should see definitive data that reflects the changing consumer needs, and in turn increase engagement for your business.
Sources: Coinlaw
