Reward programs can start to feel stale if you just set them and forget them. The points sit unused, and you might see that fewer people actually care about earning or redeeming the rewards. If you don’t make any changes that match what your members want now, the engagement drops off.
Instead, they saw 40% of their active users disappear over just one quarter. Fixing a program that’s lost its spark takes more than swapping out a few prizes or throwing in a new logo. You need to rethink some elements like personalization and the combination of rewards – how you can use games or challenges and how you can track what’s actually delivering results. With the right plan, you can turn things around and even get people excited again.
It helps you find the core challenges that need your attention when you see why programs fade.
If you see that your rewards aren’t working like they used to, don’t ignore it! You should figure out what’s holding the program back so you can get things moving again.
Why Reward Programs Can Lose Steam
Reward programs usually lose their spark for an easy reason. People just stop caring about the rewards they receive, giving the same gift cards or company merchandise year after year – the excitement drops! Once you see that fewer people are redeeming the rewards, get started on your program.
Things that are too tough usually turn people off. Some programs turn into confusing point systems where figuring out what you’ve earned feels like a math test. Nobody wants to grab a calculator just to see if they’re close to a worthwhile prize. That kind of issue causes lots of people to walk away from the program.
Outdated or clunky technology makes people lose interest pretty fast, too. If your reward platform runs slowly, crashes, or looks outdated, participants will stop using it. Most people expect the kind of smooth experience they get from shopping online – if your site feels awkward to use, it leaves a negative impression of your whole company.
Organizations drop the ball with their communication. It’s pretty common to see new programs launch with excitement – only to have everything go quiet shortly after. When people don’t hear anything, they forget that the program even exists or might think it’s already finished. You can keep things fresh if you send standard communication and remind everyone what they can gain.
Looking to learn more about an incentive, rebate
or reward program for your business?
DemoCurious about costs?
Try our instant pricing calculator:
If you skip feedback, reward programs become stale for another reason. People who use your program know what’s missing or what isn’t working well. All you have to do is ask them about it. Quick surveys or even a single question can find easy reasons why the interest has faded – an easy way for you to find these changes you might not have seen on your own.
You have to change as the world moves on, and so do people’s tastes. A reward that worked a few years ago might not sound good to your team. Just to give you an example, remote workers could want different options than the people who always come into the office. If you usually refresh your rewards every so often, it helps to make sure they still matter to everyone.
It’s harder for you to capture attention with so many programs everywhere. People see loyalty programs from almost every brand they work with. If yours blends in, people will just ignore it completely. You can look great if you also get creative and think about what makes your audience excited.
Personalization + Segmentation
Some businesses look great because they don’t treat every customer the same way. Instead, they put people into different groups based on what they buy or what catches their attention. This helps to make the rewards feel a bit more customized for everyone. When the rewards actually match people’s interests, customers usually see them and are more likely to join.
To get clear clues about what people might want next, you can use the data. Starbucks saw its sales rise by 25 percent after it started using its customer data to send deals that fit each person’s habits. You actually don’t have to be a giant company to try this out for yourself. Even a smaller shop can look at who shops the most and what products they reach for. The same thing goes for the programs for your employees – a sales team might want cash bonuses, while office workers would like some extra time off.
Just think back to the last time you got a completely random offer in your inbox! If you only buy decaf but receive discounts for espresso drinks, then you’ll probably start ignoring every message from that company. When you get the right type of offer, it feels like someone is paying attention to you. You don’t need to send messages every time – just send a few that matter to them.
There are now lots of easy online tools that help you sort your customers into groups. Try splitting them up based on how much they spend. You can also think about how often they visit or how long it’s been since they last dropped by. Your most helpful customers aren’t always the ones who come in every day – sometimes, they are those customers who used to be regulars but have stayed away for a while. A well-timed offer can bring the “sleeping giants” right back to your business.
You should watch how personal your messaging gets to people. Use someone’s data in a way that feels helpful – not invasive. Let your customers know what info you collect and why you use it. Also, make sure that you’re following the privacy laws where you’re located. Most people don’t mind sharing a little information as long as they trust you and get something worthwhile in return.
The real difference comes when you can send the right message to the right person at just the right second. When people feel like you see them, they’re more likely to stick with you. They might also spend a little more and even tell their friends. When it’s done right, it doesn’t have to cost much or be tough – just a thoughtful strategy can go a long way for your business.
Fresh And Diverse Rewards
Reward programs lose their spark if members always get the same gift cards or company merch. It keeps things fresh and makes people want to bring in a few surprises. You give your members something new to look forward to when you give some fresh options.
Marriott Bonvoy does a great job with this! Around 70 percent of their members actually use their points and it’s because they’re always updating their rewards. Instead of sticking to the basics, they give you a number of options that keep things lively.
You should also get started on your own reward catalog. If it looks about the same as it did last year, your program could be starting to feel stale. When people see the same set month after month, it can give them a reason to tune out and feel less motivated.
Programs that shake things up often see stronger participation. You don’t actually have to reinvent everything at once. Try adding a few new rewards here and there – even small differences can sometimes get the members excited about earning points again.
You can usually add a splash of variety by bringing in some seasonal rewards that fit what’s happening at different times of the year. You can introduce fun rewards without blowing your budget by teaming up with local businesses. These items look better than another generic gift card.
Experiential rewards deserve a look, too – tickets to events, options for learning something new, or even a lunch with company leaders can give some members a memorable experience. People value these moments even more than physical prizes.
Consider adding some peer recognition options as well. Easy elements like online badges or thank-you notes don’t cost much. But they help people feel seen. When your program lets people celebrate each other, it builds a stronger sense of community.
Instead of guessing about the new rewards, you can just ask your members what they’d like to see next, though. A short survey can give you some new ideas and show you what motivates your group now. What worked a few years ago might not be as enticing – so it helps to check in.
Gamification can give some fresh energy to reward programs that feel old or stale. You’ll see more members involved once the loyalty feels more like a game! Just to give you an example, when Bergzeit introduced some game-like features, their order frequency nearly doubled.
It also helps to add a social twist to revive your rewards program. If your customers can share their progress or compete with friends, they’ll stay interested. You can try to put up a leaderboard to point out the top members or give challenges that people can take on together. These elements change your program into something that people talk about during lunch or mention on social media.
You don’t have to change everything to start seeing an effect. You can test out some easy ideas like giving badges for actions or giving easy refer-a-friend challenges. Be careful, though, to make the laws as clear as you can. Confusion over how the program works drives people away faster than anything else!
A bit of competition can make the rewards feel bigger than they are. A $5 reward might not sound like much to you. But who doesn’t love success? It means quite a bit more if it helps someone to climb the leaderboard or finish a set of achievements. People love to see how they line up against others.
If you let people share their wins and progress, they’ll help spread the word about your rewards program. The power of social proof is undeniable. Whenever someone shares that they reached a new level or finished a challenge, their friends will see it – this kind of excitement grows naturally in a way that standard ads can’t replace. Plus, when friends see each other taking part, it’s easier to get new members to try your program, too.
Instant games like spin-to-win and surprise rewards can make things interesting. When members hope for an unexpected bonus the experience feels more fun compared to standard rewards. Even a small surprise can make the program feel more lively.
Track Your Metrics – And Adapt
Set-and-forget plans usually don’t work with these loyalty programs. Also, you need to watch how your program is doing so you can keep up with the changes. Check the numbers so you can see what’s working well and what might need a change.
The top programs usually make some small adjustments based on what the data shows. Try looking at your results every month and see if you can see any patterns. Are people using their points? Are they coming back again and again? Easy numbers like these can actually tell you if your members feel excited about your program or if they’ve lost interest.
Next check out how CIBC handled their employee recognition platform when they experimented with different strategies – quite a process for them! – They managed to create more than 215,000 recognition moments. They didn’t get it all right on the first try – instead, they tried some new rewards and adjusted until performance improved.
Now, think about how you’d feel if a program never changed at all. You would probably get bored and tune out. The members want to feel like you can see what they like and what they don’t.
Businesses fall into the trap of tracking numbers that just sound great. These “vanity metrics” don’t tell you much about the activity. Keep your eyes on the metrics that actually show if people are involved – this can give you some plans you can use to make your decisions.
As you’re collecting information about your members, make sure that you follow the privacy rules. People are trusting you with their facts! If you break that trust, your loyalty program won’t recover – no matter how exceptional the rewards are. Always be clear with your members about what data you’re collecting and your reasons for doing so.
The most helpful programs check how things are going compared to the established goals. They find small ways to make the experience better month after month. If something isn’t working, they’re open to trying a different path – this cycle of standard refinement helps you hold onto your members’ attention.
Customers’ preferences and habits can change over time. What got them excited last year might not spark their interest now. Nobody stands still. You can update your rewards before your members start looking elsewhere.
Level Up Your Incentives and Rewards
When you switch things up, it’s usually pretty easy. You can personalize the experience when you use segmentation. You should update your rewards so they always feel fun. You can also add in some game features that are easy to share with others and then track what’s working. That’s how I’ve seen businesses turn rewards that members barely see into programs that people actually look forward to.
The best programs don’t stay the same – they evolve and change with what your members want.
You’ll probably get some worthwhile answers if you ask your members what would get them more excited. That’s direct feedback! Easy strategies like this usually give you the clearest feedback. One of our retail clients tried asking, and their members said they wanted shareable rewards so they could post about them on social media. After making those changes, the company saw engagement climb by 40 percent over just three months. As you try some of these steps, make sure that you’re following the right data privacy laws so your members trust you.
When you find ways to make your members feel seen and appreciated, it can give you a rewards program that people stick with. Think about a few small adjustments you could make that might look great to your members. What do you imagine they’ll share with friends or talk about this time next year?
While you’re thinking about ideas, keep in mind that Level 6 can also help your business level up through a number of incentive programs. We’re able to manage everything from helping to improve sales team results to creating programs that find and reward employees so they’re happier on the job – who wouldn’t want that? Our team can build custom services like branded debit cards, employee recognition programs, and sales incentive programs made just for your goals. These programs are designed to actually help you see concrete results!
Get in touch with us for a free demo and see how we help businesses like yours to increase ROI and grow sales.
Claudine is the Chief Relationship Officer at Level 6. She holds a master’s degree in industrial/organizational psychology. Her experience includes working as a certified conflict mediator for the United States Postal Service, a human performance analyst for Accenture, an Academic Dean, and a College Director. She is currently an adjunct Professor of Psychology at Southern New Hampshire University. With over 20 years of experience, she joined Level 6 to guide clients seeking effective ways to change behavior and, ultimately, their bottom line.
