5 Reasons Loyalty Programs Fail
2nd June 2022
Written by Tom Peace
Loyalty programs come in many shapes and sizes and spread the width of many industries. There's, however, one thing they have in common. They can all fail.
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Check out the top five reasons why:
1. Unattainable Rewards
Some companies make it nearly impossible for members to reach the status that grants them a reward. If the customer doesn't think the reward is within their grasp, they'll stop working towards it.
2. Poor Understanding
If potential customers are left asking themselves "how does this loyalty program work?" then there's a clear problem in the communication. If they don't understand it, or how it can benefit them, it's likely they won't bother signing up at all.
3. Over Complication
Loyalty schemes need to be simple and easy to use for members. If there are too many barriers to entry during the signup process or a cluttered overwhelming app that's trying to do everything, businesses will likely see the program fail.
4. Failure To Adapt
Loyalty programs need to be flexible enough to pivot, adapt and evolve as trends emerge and new techniques are discovered. Failure to keep up will leave businesses in the dust against competitors.
5. Lack Of Promotion
If companies have created a truly innovative loyalty program but their customers don't know anything about it - then that's their first mistake! It's essential that with the launch of a new program, or the revamp of an old one, it's marketed correctly!
