Loyalty Program Cleanup Day

Spring is an important time for loyalty programs. Especially today, when the COVID-19 pandemic presents program operators with new challenges and puts them in an unusual market position. If a loyalty program is not operating at full capacity due to the current situation, now is the right time to reorganize. As a loyalty program operator, you can devote one day to creative work. A "Cleanup Day" is when you can pay attention to issues that you do not usually have time for in your regular workflow. We have prepared below three proposals to carry out such activities you can incorporate.

Cleanup Day Task 1: Find and close inactive member accounts in your loyalty program.

Every loyalty program has customer churn. It is normal when some members abandon the loyalty program. If you have not set up the option to automatically close inactive accounts, this is the right time to do it. Managing your program by reducing inactive accounts has several advantages, from improving program statistics, to reducing marketing and communication costs and being compliant with the GDPR. To implement it, follow these four steps:

1. Develop a rule for closing inactive accounts, for example, 12 months without any activity on a member's account.
2. Launch a campaign to re-engage inactive members.
3. When the campaign is over, close all accounts that remained inactive.
4. Set up an automatic algorithm that will close inactive accounts regularly.

Cleanup Day Task 2: Make an audit of your marketing and communication

Spend your time to audit and optimize your marketing strategies, tools, and procedures as well as communication channels. Likely, you will find areas that can be automated or redesigned. Look at the cost of communication systems such as e-mail and SMS to find a solution to reduce them. Skim through your loyalty segments and think about designing new rules to keep them up-to-date. Is it possible to elaborate on new touchpoints to communicate with your community?

Cleanup Day Task 3: Use opportunities to innovate

Dedicate time for innovation, brainstorming, and product development. Think outside of the box. It is an opportunity to find new solutions which are more modern and comprehensive. Take into account current technologies that may be helpful in your program. Lockdown during COVID-19 showed that digital technologies are the future of business. Are there any other possibilities to expand your loyalty program into digital or mobile?

There are opportunities to take advantage of the time the pandemic has given to loyalty programs. It is up to the loyalty program operator how they use this chance, clean the program, and prepare to function regularly once they’re back to regular operation.

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