Adidas’ Loyalty Program Changes Miss the Mark, According to Customer Experience Expert Dan Gingis…

In a recent LinkedIn post, customer experience expert Dan Gingiss, CSP, critically examines recent changes to Adidas’ loyalty program, highlighting a common pitfall companies face when attempting to adjust customer rewards.

Gingiss points out that Adidas has removed a perk – free personalization – for some of its top-tier members. The accompanying communication from Adidas stated, “We’re always trying to make our rewards program better.” However, Gingiss argues this framing is fundamentally flawed from a customer’s perspective.

“But from a customer’s perspective, ‘better’ usually means more value, not fewer perks.”

Gingiss acknowledges that loyalty programs are inherently costly and that adjustments are sometimes necessary. The core issue, he contends, lies in the execution and communication of these changes. He emphasizes that subtracting value without adding something in return is a significant customer experience (CX) misstep.

The Perils of Subtracting Value in Loyalty Programs

In his analysis, Gingiss elaborates on the importance of perceived value in maintaining customer loyalty. He suggests that when companies feel the need to reduce benefits, they must simultaneously introduce new ones to compensate. This approach demonstrates continued appreciation for the customer.

“If you have to take something away, fine, but add something else at the same time,” Gingiss advises. He provides several examples of how companies can offset a removed perk, including:

• Introducing a new, desirable perk
• Offering an upgrade on existing benefits
• Granting earlier access to new products or sales
• Improving shipping speeds
• Providing a surprise reward

The underlying principle, according to Gingiss, is that loyalty must be reciprocal. The customer needs to feel that the brand’s commitment to the relationship is ongoing and genuine.

“Because loyalty only works when it feels… loyal.”

The Importance of Reciprocity in Customer Relationships

Gingiss further explores the concept of reciprocity in loyalty programs. He argues that customers engage with these programs because they believe they are building a relationship that benefits both parties. When a company unilaterally removes a valued perk, it can erode that trust and make the customer feel unappreciated.

“The CX miss is thinking you can subtract without replacing the value you just removed,” Gingiss states. This perspective underscores the need for a holistic view of customer value when making program adjustments. Simply rebranding a reduction in benefits as an improvement is unlikely to be well-received.

Maintaining Trust Through Value Exchange

The expert concludes by posing a question to his audience, inviting discussion on their own favorite loyalty programs and the reasons behind their preferences. This interactive approach, typical of Gingiss’s engagement style, further highlights his commitment to understanding the nuances of customer loyalty.

“We’re always trying to make our rewards program better.”

Gingiss implicitly critiques this common corporate phrase when applied to benefit reduction, suggesting that transparency and a genuine effort to enhance, rather than diminish, customer value are key to successful loyalty initiatives.