You decide you want to implement a loyalty program. Everyone else has one. You spend time implementing the program and can't wait to see the results. Then, your program falls short. Here are 6 reasons your loyalty rewards program is failing:
1. You didn't set any goals.
How can you determine the success of your program if you don't have any goals in mind to reach? Having measurable statistics will help you to identify your program as successful. Your rewards program goals should align with your overall company goals to ensure your program is leading to the success of the entire company.
2. You're not putting in any time or effort.
Granted, you can keep running certain parts of loyalty programs without changing anything and keep people coming back. However, to keep it interesting and keep your loyal members coming back to your store, you should put in some time and effort in comunicating with them and offering new promotions periodically. They might be bored with your offering or they might forget about you when they're not stopping in for gas. If your program isn't performing well after a while, try testing other structures.
3. It's not your loyalty program, it's you.
Something isn't up to par in your store. Is your customer service poor? Customers are not just loyal to your program, but the entire experience they have in your store. No one wants to be loyal to a rude business. Is your coffee bland? Fix it by letting customers customize their coffee flavor. Make sure what you offer customers is something they actually want. They won't care about getting the 10th cup free if the first nine are terrible.
4. Your Competition Does it Better
The average household belongs to multiple loyalty programs. With so many programs out there, your customers are only going to participate and remember the programs that are most valuable to them. If your rewards program is similar to a competitor's, the only thing differentiating you is probably price. Make your program more valuable to them. Get more ideas for beating your competition here.
5. Your Program is Too Complicated
Your customers want something simple. It shouldn't take a lot of effort to enroll in your rewards program. They shouldn't have to read a whole lot either. The earning structure should be very simple and easy to attain free items and discounts. No one will join your program if it is frustrating or it takes a long time to earn anything.
6. You're Not Promoting Your Program
Your loyalty rewards program should be advertised on your website, through social media, on your blog, at the pump, and in your store. It should be mentioned everywhere possible. If a customer doesn't know about your rewards program, they don't know which items are valuable for them to purchase and they will probably go somewhere else.