Research Outline

Loyalty Program Marketing

Goals

To understand how brand loyalty programs work, and best practices for, in terms of push notifications and subject lines for email marketing.

Early Findings

Push Notifications

  • According to one source, five best practices for loyalty program push notifications is don't spam, flash specials/offers, maintain brand consistency, promote rewards cards and control the timing.
  • Another strategy is to time the push notifications on a certain schedule related to the customer lifecycle. For example, after signing up and thanking the customer, one brand sends a message on day 2 highlighting the value proposition of opting-in. Then, on day 5, users get a notification about the refer-a-friend promotion, and the same notification is sent again on day 20. If a customer fails to redeem their sign-up bonus, the app sends a notification 3 days before its expiry to give the customer adequate time to make their order.
  • Generally, sending notifications 3 days before the expiry of any offer or promotion is useful, giving them enough time.
  • Notifications must be personalized, such as only if a user has not used an offer/coupon. Or if they do interact, the notification should be custom in thanking them or offering a follow-up reward.
  • Geo-tagging can also be an innovative solution to any brand with a physical presence. Notifications can be triggered when a user's phone is near a store.

E-Mail Subject Lines

  • Similar to push notifications, customers expect their e-mail subject lines to be personalized. 26% more consumers are likely to open a personalized subject line e-mail than not.
  • However, do not be vague or generic. Subject lines should be sharp and refer directly to the e-mail's content.
  • Also, do not be afraid to be unique or quirky in accordance with the brand's personality.
  • Sometimes referencing something contextual, like the weather or a popular news story/event can also be catchy to consumers.
  • Salesforce recommends sending e-mail at 5 points of the customer lifecycle: lapsed customer offer, monthly reward statement, notification that new rewards are close, reward expiration reminder and tier status/milestone reached. All subject lines should have a call-to-action other than just opening the e-mail.