Loyalty Register

Loyalty glossary · 10. Marketing and engagement (20)

Engagement Ladder

Engagement Ladder is the ordered set of member behaviours, from first accrual to activity-based qualification, that a programme uses to separate casual members from committed ones and to assign status or reward accordingly.

Most loyalty programmes claim to have an engagement ladder, but few draw it as a sequence. A genuine ladder starts with a member's first accrual and ends with a repeated activity-based qualification. Everything between those points is a designed rung, not an accident of earn rates.

The active-member rate is the most common proxy for ladder health, and it is a weak one. It counts members who crossed a threshold in a fixed window, but it cannot say whether they moved up, down, or stood still. A single percentage hides the shape of the rungs beneath it.

Work the ladder as a chain of accruals. A programme awarding 100 points for 1 stay sets a first rung that is trivially low. A member who makes 1 stay in each of 12 months accrues 1,200 points, which is 12 times the 100 points earned by a member who makes 1 stay in the same year. The difference between 1,200 points and 100 points is the distance from loyalist to tourist.

Activity-based qualification is where ladders go wrong most often. Programmes set a single hurdle and call the two-state result a ladder. A member who barely misses the hurdle is treated as no more engaged than one who never started, which is nonsense but administratively convenient.

The most damaging design is a ladder with one rung at the bottom and one rung at the top. Accrual feeds the bottom, activity-based qualification feeds the top, and nothing feeds the middle. Members vanish in that gap, and the programme blames the member instead of the missing rungs.

A well-built ladder has at least three distinct rungs, each with a clear action and a clear reward, and it removes members who reverse. A programme that cannot name its rungs out loud has not built a ladder. It has built a points statement.

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