What makes a good loyalty program?

The best ones are “simple yet powerful,” Klarna marketer Jon Chang told us.

In 2020, Forrester Research noticed hundreds of brands across the globe reevaluating loyalty programs to meet pandemic-era demands, so it dug deeper to find out what exactly today’s consumer wants from one:

  • A survey of more than 4,600 US adults found that two-thirds—65%, to be exact—agree that instant discounts (in-store credits) are important elements of loyalty programs.
  • 62% of the same group said “points, miles, or other loyalty currency” are important.

So, what makes a good loyalty program? According to Mary Pilecki, Forrester VP, principal analyst, and author of the report in question, it’s simplicity. Merchants that operate “under the false pretense that abundance equals differentiation” create “unnecessarily complicated and therefore frustrating customer experiences,” the report reads. 

Klarna’s Global Head of Shopping Growth Marketing, Jon Chang, agrees.

“Good loyalty programs are simple yet powerful. So many loyalty programs try to gamify the experience to the point of confusion and exhaustion for the customer, or offer too many rules and exceptions or variations of point systems,” Chang told Marketing Brew. “If your customers don’t know how to use your loyalty program, then you’re doing it wrong.”

One loyalty program that checks off all those boxes is Customer Loyalty Accelerator (CLA). A groundbreaking program, CLA uses the power of spending-based store credits to motivate and reward return customer visits and higher spending.
CLA is super easy to set up and even easier to use.  Plus, CLA offers a risk free 60 day Free Trial period. Then, it’s one plan for one low price.  How simple is that? Customer Loyalty Accelerator can be found on both Shopify and Clover app stores.