To keep up with evolving markets and loyalty economics, while driving value for your members, it’s inevitable that your loyalty program will change over time. Whether the changes are more beneficial to the consumers, the brand, or ideally both, the way the changes are positioned and promoted, plays a key role in member adoption.
At Kobie, we have decades of experience helping brands navigate the impacts of these changes with members across a range of industries. Here are six key principals to consider as your loyalty program evolves:
1. Lead with transparency
With consumer trust at an all-time low, it’s critical to ensure your messaging around program changes leads with transparency. All communications should be clear and consistent across channels, covering what is changing, why it’s changing, and how it benefits consumers.
- What is changing: Don’t make members dig to find out what the changes are. Rather than leading with the benefits, lead with objective, clear statements as to what the changes are to avoid confusion.
- Why it’s changing: Explain the reasons behind the changes, such as aligning with customer needs, improving sustainability, or enhancing value. This lets customers know the changes are thoughtful, intentional, and ultimately to their benefit.
- How it’s beneficial: Be sure to include how the benefits to these changes will be experienced on the member side. Especially if there are any changes that could be perceived negatively, such as higher cost or less optionality, balance this with the end-benefit of what the changes will provide.
Press releases are ideal for delivering objective news, so considering partnering with a PR firm to ensure your messaging is transparent, and use that as a grounding point throughout your additional channels.
- Market example: In 2023, Delta announced program changes that solicited negative responses from their member base. So, in response, they leaned into transparent communications and adjusted the new program structure. Transparent messaging included:
- “It’s been a challenge to balance the growth of our membership with our need to deliver premium service.”
- “Based on your feedback, we are making program adjustments.”
It’s important to acknowledge when you could have done better and be transparent in how you are fixing it.
2. Consider the timing
Plan your communications well in advance of the program changes to help build excitement and give time for adoption and feedback. It’s also advantageous to choose a launch period when customer attention is high, and the message won’t be overshadowed. Be sure to consider the scope of your changes:
-
- If the changes are minimal, or they require no action from members, the lead time for announcement can be shorter.
- If the changes are significant or require action from members, be sure to give them adequate time to adjust.
Depending on which category your changes fall into, consider also sending frequent reminders about the changes if they are significant enough to warrant action. Also, if your brand can be selective with the launch timeframe, do so during a period where customer attention is high.
- Market example: Ulta built excitement during the holiday season, when their customer attention was high, for their new program changes that would be launching in the new year. They continued to leverage this timing to build hype and excitement post-launch of the changes.
3. Be customer-centric
Not only is it critical to highlight how program changes will benefit your customers but keeping them at the center of your communications and proactively addressing their concerns can go a long way.
Once you’ve established transparency around what the changes are and why they are happening, focus on the benefits such as enhanced rewards, better experiences, or exclusive opportunities.
Address potential pain points by acknowledging any perceived negative impacts and explain how your brand is working to minimizes those effects or offer alternatives.
- Market example: Subway launched their new loyalty program through a customer-centric approach that leaned into the Emotional Loyalty profiles of their consumers. “Subway fans are the best in QSR, and to thank them for their loyalty, we’re giving them the star treatment as MVP Rewards Members.”
- They also ensured members knew their feedback played a role in the revamped program, stating “Consumer input helped inform our refreshed loyalty program to create a best-in-class experience.”
- To mitigate potential pain points, Subway ensured members understood that their loyalty accounts would be automatically transferred to the new program and any unspent tokens would be converted into points.
4. Leverage multi-channel outreach
Outside of traditional communication channels like press releases, email, and social media, consider more ways to communicate the program changes that will increase buzz and adoption. Be sure to:
- Consider your internal teams and associates as an extension of PR efforts, ensuring they are well-informed and equipped to explain any changes directly to customers.
- Work closely with media outlets to ensure accurate news coverage, providing your press release with exclusive offers for interviews/quotes, or further information.
- Look at influencer marketing and viral-style content as a compliment to more traditional press strategies.
Market example: Target leveraged a multi-faceted PR strategy, resulting in organic buzz and earned media for their new subscription program within Target Circle.
5. Incentivize adoption
Provide special rewards to members who engage with your program early and use your communication strategies to help them navigate the changes smoothly.
By offering special incentives or bonuses to members who engage in the new program changes early, it can soften the impact of changes and help spread positive feedback.
Be sure to educate through your incentivization, ensuring your members know how to navigate the changes easily and what they stand to gain from doing so.
- Market example: When Starbucks launched a new partnership within their Starbucks Rewards program, their press release emphasized an incentive for engagement to aid in understanding the new partnership and rewarding early adopters.
- They leveraged language that hit home the incentive, saying “unlock exclusive benefits” and launching a sweepstakes “exclusively available to Starbucks Rewards and Marriott Bonvoy members with linked accounts.”
6. Prepare for feedback
Consider how you are providing members a forum to offer their thoughts and feedback regarding program changes, and prepare your guest communication teams on how to respond.
Be sure to create opportunities for feedback through things like surveys, focus groups, or social media listening. This can help direct any negative commentary through private channels vs. public forums.
Prepare your customer service or guest communications teams with how to respond and elevate any concerns. Also, like the Delta example, if you are able to intake feedback that results in further changes, let customers know you are listening to them.
- Market example: When Sephora updated their most revered Beauty Rewards benefit in 2023 – the birthday gift – they ensured members had space to go learn more about the program change and provide any feedback they had.
- They leaned into convenience as an emotional motivator for their members, summarizing the program changes quickly and efficiently with FAQs to proactively address questions or concerns.
The longevity of your loyalty program rests an ability to successfully navigate changes. Leveraging these six key principals can help mitigate friction from your members and ensure the PR coverage around your changes is transparent, timely, and positively received in the market.
To learn more about how to evolve your loyalty program strategy, reach out to Kobie today.
Written By: Hayley Hanel
Kobie’s Strategic Consulting Manager
