A loyalty program allows brands to communicate with program members in many different ways. In addition to standards sales and information-related campaigns, there is another type of campaign that’s important for the program to run on a continuous basis, which includes program-related communication.
It is a set of automated messages related to members’ accounts, such as password reset confirmations, points expiration reminders, welcome messages, tier upgrades, and birthday greetings. There are many ways brands and their customers can benefit from these kind of notifications:
Program-related communication helps to maintain audience motivation. Members receive a piece of real-time information about their program activity and status. The program assures them that their actions have a real effect (reward order confirmation, points accrual). Thanks to this, they have a better sense of interaction with the program.
During key-moments, this communication can encourage member activity, such as when a member’s points are set to expire. With the impending possibility of loss, members are much more likely to act to prevent that happening by visiting your store.
It helps to stay in touch with members who did not agree to receive marketing communication. Program-related communication is allowed at all times and helps to remind the members about the program and its value. Most of program-related communication does not require member consent (it is related to participation in the program).
It is a great tool to appreciate your members. Who does not like to receive a message of congratulations? Or birthday greetings? The program operator can adjust program-related communication to send these messages just in time, so when members reach a higher tier, use a coupon, or celebrate birthdays, they will immediately receive a message from the program.
Program-related communication should meet the following conditions:
The program operator has to adjust the message purpose and content based on their program structure and audience profile. For example, we can take a look at the account termination notification (due to account inactivity). If this kind of information is sent just one day before closing the account, the chances of members’ reactions are low. Alternatively, the termination notification can be sent 30 days prior to the planned event so the user has time to become reengaged, and the content should briefly describe what members should do to avoid this event.
The loyalty program system should send messages as soon as the required conditions allow. While it may seem obvious, sending messages as soon as possible helps to avoid negative situations. Otherwise, there is a risk of churn due to a delay in sending an enrollment address confirmation e-mail, or dissatisfaction of customers if they were to redeem a coupon and do not receive it on time.
Messages should arrive through the appropriate channel. For most members, an e-mail likely works well. But depending on the type of the message, some are better to send via other channels.
Program-related communication is an important part of the program. It is worth paying attention to and setting up based on your program’s specific structure and your members’ needs and can be used to activate, recognize, and remind members about the program.
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