Paytronix: Four Signs a Loyalty Program Needs to Be Updated

Paytronix Systems, Inc., a provider of reward program solutions to restaurants and retailers, said it has identified the four signs a loyalty program is ready for an upgrade: declining loyalty, gaming the program, franchisee complaints and a conflict with corporate objectives. Paytronix explains in its research brief “Is it Time to Change Your Rewards Program?” how hospitality companies can evaluate a loyalty program’s effectiveness in meeting the two primary goals of loyalty: driving members to visit more often and to spend more when they visit. This research brief is the third in its Paytronix Data Insights series titled “Extracting Customer Insights From Big Data.”
 
In its research brief, Paytronix explores the key signs of program change, alongside a case study analysis of lessons learned from the significant changes to Starbucks loyalty program earlier this year. Here are the four signs that a loyalty program is no longer effective:

• Declining loyalty penetration and new member enrollment.
• Evidence that customers are “gaming” the program to their advantage.
• Franchisees and operators increasingly complaining that the loyalty program is just a discount program.
• The program conflicts with corporate strategic objectives.

 
To read the research brief, please visit:  Extracting Customer Insights from Big Data:  Is It Time to Change Your Rewards Program?