Taking Rewards Points to the Bank.

Applaud the work: Would it bother you more to lose $50 that dropped out of the sky or your $50 paycheck? Customers value loyalty rewards precisely because such rewards, "earned" through hard work, have intrinsic value. In your communications, acknowledge this feeling of ownership by recognizing the savers’ commitment to the goal. Avoid the suggestion that rewards are earned randomly in a game of loyalty lotto. And if you must restructure your program at any point to reduce the value of those hard-earned savings accounts, do so with great sensitivity so you don’t lose their trust. Your customers should view loyalty rewards as a sure thing—something they can bank on.

COLLOQUY contributing editor Caroline Papadatos is Chief Knowledge Officer of Alliance Data Loyalty Services.