In Mexico, the Day of the Dead is a time to fondly remember those who have passed away. This year, we want to create a different kind of altar: one dedicated to loyalty programs that have died.
We’re not going to name names. But you’ll probably recognize several: the points card that nobody used, the app that was downloaded once and deleted a month later, the program with a catalog that nobody wanted.
Let’s review the most common reasons for their departure so that your program doesn’t end up in next year’s offering.
| 🕯️ Rest in peace: “The show that nobody understood” | Cause of death: complicated rules. Points that were worth different amounts depending on the day, conditions in small print, and a ten-page manual. The participants never figured out how to win, so they stopped trying. |
How to avoid it: If you can’t explain your program in one sentence, it’s too complicated. Simplify the mechanics and always show the participant how far they’ve come and how much they have left. |
| 🕯️ Rest in peace: “The prize that never arrived” | Cause of death: unattainable rewards. To win the first prize, customers had to buy for two years. By the time they reached the goal, they had already switched to another brand. |
How to avoid it: design a quick and achievable first reward, and combine long-term goals with frequent benefits. |
| 🕯️ Rest in peace: “The Invisible Program” | Cause of death: lack of communication. It launched with a big event and then disappeared. The participants forgot it even existed. |
How to avoid it: plan constant and relevant communication across all channels: app, email, WhatsApp, social media and point of sale. |
| 🕯️ Rest in peace: “The one who rewarded everyone equally” | Cause of death: zero personalization. The customer who bought every week received the same as the one who bought once a year. The best customers didn’t feel valued. |
How to avoid it: Use program data to segment, create tiers, and personalize offers based on each participant’s behavior. |
| 🕯️ Rest in peace: “The catalog that nobody wanted” | Cause of death: unattractive awards. Blenders, thermoses, and keychains… year after year. Participants accumulated points they never redeemed. |
How to avoid it: listen to your participants, update the catalog, and combine products with digital experiences and benefits. |
| 🕯️ Rest in peace: “The one who never changed” | Cause of death: lack of evolution. It worked very well at launch, but customers, technology, and competition changed. The program didn’t. |
How to avoid it: review results periodically and redesign when the indicators start to fall. |
| 🕯️ Rest in peace: “The one who didn’t know if it worked” | Cause of death: no one measured it. For years, investment was made in the program without knowing if it generated additional sales. In the first budget cut, it was the first to disappear. |
How to avoid it: Define indicators from the start and calculate the return on investment regularly. |
Signs your program needs attention
- The active participation rate has been declining for months.
- The points accumulate, but almost no one redeems them.
- Participants do not open your communications.
- You receive more complaints than positive comments.
- You cannot demonstrate the return on investment.
If you identified two or more, you don’t need to bury your program: you need to redesign it.
How to revive a loyalty program
- Make a diagnosis: analyze data on participation, redemption, and behavior.
- Listen to your participants: surveys and interviews to understand what they value.
- It simplifies the mechanics.
- Renew your rewards.
- Relaunch with a communication campaign.
- It measures and adjusts continuously.
Frequently Asked Questions
Why do loyalty programs fail?
The most common causes are complicated rules, unattainable rewards, lack of communication, and absence of personalization.
Should you shut down a program that isn’t working or redesign it?
Redesigning it is generally better: you already have participants and data that you can leverage.
How often should I review my program?
Review indicators every month and do a full evaluation at least once a year.
Don’t let your program end with the offering.
At LMS we combine experience and innovation: we are specialists in the design and redesign of loyalty programs, with 27 years of experience, proprietary technology and data analysis.
Schedule a diagnosis and give new life to your program.
