How to Keep Customers From Opting Out of your Loyalty Program

Posted by Krista Lessard on Fri, Aug 08, 2014 @ 12:26 PM

marketing solutions,simpli,loyalty marketing,customer loyalty,loyalty marketing programs,customer retention programs,retaining customers,how to retain customers,loyalty program software,customer loyalty software,rewards program software,customer loyalty marketing,loyalty programIf you ask any business owner, they'll probably say that the hardest part of any loyalty program is getting your customers to sign up. After you have convinced them to join, it is important to make sure they use their rewards and don't opt back out of the program. Here are 6 ways to make sure that they stay a loyal customer:

1. Don't require expensive purchases in order to receive rewards.

The top reason consumers stated that they opt-out of loyalty programs, or refuse to sign up in the first place, is because the program is too expensive. In fact, 50% of consumers stated that this is the main reason they opt-out. Customers are signing up with your rewards program in order to receive some kind of benefit - usually to save money, not spend more.

2. Give your customers a reason to come in more often.

43 percent of consumers claim to refuse to join a loyalty program, or opt-out of the program soon after joining, because they don't shop there enough to realize the benefits. This shows that the rewards have to make it worth their while to go to the store or shop online. It also comes down to product, you have to have what they want.

3. Keep the loyalty program simple.

Customers don't want to waste their time trying to figure out a loyalty program. In fact, having a complicated rewards program can create a negative feeling toward your company, harming your business in the long run. 37 percent of consumers claim to opt-out of a loyalty program because it is too complicated.

4. Offer benefits your customers will actually want.

A common mistake marketers make when handling loyalty programs is to use it to try to get rid of things people aren't buying. Unless it is cost related, they probably aren't buying it because they don't like it. Even if you offer rewards to purchase that item, if they don't like it.... then they don't want it. 30% of consumers have opted-out of a rewards program simply because they didn't like the benefits being offered.

5. Don't overcommunicate with your customers.

We've all been there - where you show a little interest in a company and agree to give your email address and the next week is full of message overload in your inbox! After clicking the spam button on each one and unsubscribing, you begin to have a negative feeling toward that company for annoying you so much. 27 percent of consumers opt-out of programs because they receive too many emails or other communications.

6. Don't ask for too much personal information.

This is probably more for the initial sign up process, but can still pertain to opting-out. 25 percent of consumers didn't join a program because they don't like to give out personal information. How do you get around this? Well, you can't exactly, but you can ask for a minimal amount and emphasize that they can unsubscribe at any time and give the we-don't-sell-to-third-parties spiel.

 

In order to have a successful loyalty rewards program, you need to know what your customers want... and don't want, for that matter. By implementing a loyalty program software, you can track and analyze the results of your rewards program. Using a customer loyalty software, such as Simpli, really simplifies your marketing strategy and makes it easy for your customers to stay loyal.

Download our Ten Tips for Customer Rewards Program Success and ensure your customers stay loyal!

Ten Tips for Customer Rewards Program Success

Stats from November 2013, MarketingCharts.

Tags: Loyalty Marketing, Tecmark