I remember enrolling myself in a dozen of loyalty programs with different stores, restaurants, cafes and there might be many programs that I have completely forgotten.
Building a brand community with reward programs might seem to be the ultimate solution to customer retention. Starting a loyalty program might make you feel that everything will fall into places, you will gain all your customers’ loyalty and your customers will keep on coming back to you, but that’s not the truth! If your loyalty program is managed poorly, then your chance of creating the best customer experience will go in vain.
Poorly managing a loyalty program will lead to a bad customer experience that they will never forgive your brand. We have jolted down 10 such mistakes in managing your loyalty program and how you can avoid those.
#1 Complicated and Frustrated Sign-ups
Data is important, but if you ask your customer to fill a long list of particulars ignorer to join your rewards program, they sure are going to feel frustrated and unwilling to participate.
Solution: Make sign-ups as easy as 123. Minimize the registration process and you surely have them sign up for your membership program.
#2: Unattractive Rewards
The biggest mistake brand makes is to provide the same loyalty reward to all its customers. You might be selling one type of product and your customers are buying the same products, but it doesn’t mean that they will like the same type of reward program you have designed.
Solution: Segment your customers and design your reward program. Diversify your rewards based on their behavior, age groups, spending habits, and so on.
#3 Too Complicated Program Structure
You want to stand out from your competitors, you want to be creative, but please don’t complicate the process flow of the program. Brands that put too many steps, adding new rules to their programs can frustrate the customers because they are not used to those.
Solution: Make your program structure simple. Don’t add too many rules. It is always good to put up in display steps to be successful and what value it has for the customer. This will motivate your customers and build up engagement meant with your brand.
#4: Bad User Experience
Customers are accustomed to good design and responsive interfaces. So, it demotivates and uninterested in your loyalty programs if you provide a bad user experience. Ugly designs, broken links can again frustrate your customers, leading them to abandon your loyalty program.
Solution: Get a loyalty program that has a simple, responsive, and great user interface. Get a platform where you have the option to customize your own portal for brand visibility. Create a logo, images of beautiful designs, be consistent so as to make your customers trust your brand.
#5: Too Often Changes in Reward Program Rules
We understand change is sometimes inevitable, but that doesn’t mean you will keep on bombarding your customers with a different set of rules. Your customers might lose trust in your brand.
Solution: You need to clearly communicate with your customers via email or SMS when you make any changes. Also, you can avoid such changes by planning the program well ahead and test if possible.
#6: Issues to Redeem Points
Redeeming points should be an easy affair. Don’t let your customers get frustrated with all your technical excuses on being not able to redeem their points smoothly.
Solution: Get a great solution that creates a great customer experience with every transaction your customer make.
#7: Customers have no Track of their Points
You have mentioned so many appealing reward programs to your customers, but your customers are not aware of their reward journey in achieving their goal. Definitely, they will not stay motivated.
Solution: Select a solution where you can automate emails about your customers’ points and let them check how far they are from their reward goal. This can always keep them motivated and engaged.
#8: Boring Program Marketing Strategies
People often tend to get bored with getting the same rewards again and again. And they tend to abandon if these rewards do not provide any value to them. You set a generic reward program and keep it going on for years.
Solution: Please stop doing it. Excite your customers, revisit your points and curate something that provides real value to them.
#9: No Re-Calling
You must have got enrolled in many loyalty programs. How many do you actually remember or revisit to get rewarded as promised by these brands? The truth is customers forget about these reward programs as well as you have left engaging with them.
Solution: Send reminders to your customers that you are still alive, and how you miss them. Send behavioral marketing emails, notifications, SMS to bring them back to you.
#10: Competitive Alternatives
The biggest challenge of merchants is that every brand is giving its best to attract their customers with attractive offers and rewards. With this increasing competition in the marketplace, it’s getting difficult for merchants to stand out.
Solution: Put your energy and time in valuing your customers, they will be able to see how much effort you have given to create a great customer experience for them. They will definitely stay committed to your brand.
Keep your customers interested in your brand by readdressing these issues, modify if required to bring additional value to your customers with each interaction, and turn every translation into relationships.
What are you waiting for? Start it fresh or reimagine your customer retention strategy today with Poket.