Why loyalty programs can end in heartbreak
30th January 2023
Written by Tom Peace
Don't give your loyal customers a reason to break up with you this Valentine's. A study by Accenture showed 78% of consumers report they are retracting loyalty at a faster pace than three years ago! Here are five common mistakes you'll want to avoid this Valentine's Day and beyond:
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Top 5 Reasons why your Loyalty Program is struggling
❌ Only rewarding transactions
In this day and age, there are so many ways a customer can interact with your business, for example, referring a friend, sharing to social media or leaving a product review. The key here is to identify all the behaviours you'd like to encourage and reward them.
❌ Not making changes
The world around us is constantly changing and adapting, so your loyalty program should too. As new technology is released, stay on top of it because before you know it your competitor has a new loyalty mobile app whilst you're still using a stamp-based system.
❌ Boring rewards
This is where you can get creative! We're all bored of seeing 'get your 5th coffee free', so think outside of the box when it comes to rewarding your VIPs. Remember: rewards need to be desirable to the customer!
❌ Overcomplication
If participation is down, it might be because your over-developed program has become too complicated for the user. Make sure the process of earning and burning is simple and market how to use the program correctly. Not sure if this is your problem? Conduct some research and you'll find your answers!
❌ Not personalising
Customers expect a personalised experience in 2023. They want rewards based on their shopping habits and tailored communication that goes beyond using their first name in messaging. A study by McKinsey showed 71% of customers want businesses to provide personalized experiences. And... 76% are frustrated when this does not occur!
Save £5k on a full programme review
Did you know that we offer a full review of your loyalty programme?
Through the month of February we are offering this product for £10k, saving you £5k.
Our loyalty programme review covers all aspects of you programme and provides recommendations on areas to improve. We will investigate:
1. Your existing benefit structure
2. Value proposition, in terms of rewards and incentives
3. Competitor benchmarking
4. Customer experience and customer journey review
5. Financial business case
6. Technology review
7. Organisational structure
8. Recommendations for the future
This is a great way to understand how competitive your programme is and where it could be improved.
To find out more email us at letstalk@theloyaltypeople.com
Bookings made in February - project delivery by 30th June latest.
