Many consumer loyalty programs have been proven to work, but not all of them. Experian marketing found 72 percent of companies who use some form of discount reward systems see a return on their investment. What happens with the remaining 27 percent?
You don't want to waste time and resources on a loyalty program that doesn't motivate spending and return visits. There are indications that you need to make adjustments to your current system, and then there are signs you need to completely start over.
You have plenty of members but no insight
It may seem counterintuitive, but the problem with your loyalty program might be too many members; at least, more subscribers than your current system can keep up with. The Wise Marketer Blog said many stores launch a loyalty initiative with great recruitment techniques but no strategies for data collectionand membership management.
Being unable to track your customers means you have no idea which ones come back and which sign up but never follow through. Instead of pouring all of your resources into attracting members, you need to make some effort to monitor, manage and satisfy the loyal shoppers you already have.
Investing in a loyalty program that shows when a consumer redeems rewards or makes a purchase, helps you measure the success of your program. What's better is a flexible solution that provides automatic, mobile and centralized performance. If you don't have a system in place to use the information generated by a loyalty program, you have no idea if it works and what you can do to keep members using the service.
Your employees can't even understand it
How many sentences does it take to explain your loyalty program? More importantly, can clerks explain the advantages concisely and quickly while performing a transaction with a customer? Not only will a simple loyalty program attract new members, it will prevent consumers from forgetting what to do and not getting their rewards.
Employee programs are not a single purchase, they are an ongoing service customers have to sign up for, so you have to continuously demonstrate value. While the subscription is free, Business.com said shoppers feel like they invest time and effort into programs, which means they want a return on their activities.
A simple point-based system or mobile performance are great ways to keep a loyalty program convenient and easy. You might find a way to give shoppers power so they can dictate how they would like to use the service. This way, they feel like loyalty is on their terms instead of running through a complicated maze.
Your loyalty program is an island
A shopper loyalty program can't exist on its own. The membership promotions must come from your brand's central message. Anything your store or restaurant uses to communicate with customers must be consistent with marketing, in-store service and consumer care practices.
For example, if you want to offer a punch card, the design and coloring should be the same as the patterns on your print advertisements or social media pages. This is sometimes a problem when loyalty programs are supplied through third parties. While a promotional partner can offer technology and consumer expertise experience, you also have to find a provider with a flexible system that allows you to design your own messages and online materials.
You don't have a formal system in place
If you just offer a physical punch card, it might encourage returning shoppers, but it won't supply you with any other benefits. A formal solution - preferably one that uses digital tools - not only encourages loyalty, but makes sure you get insight from daily activities.
GI Insight, a market research company, found 76 percent of shoppers expect credible businesses to provide a formal loyalty program, according to Chiefmarketer. Most consumers want stores to offer specialized promotions and will gladly let businesses track their in-store activities through technology like mobile beacons to create unique messaging and discounts. If a business doesn't take part in such a program it misses out on learning from its historical data and might appear prehistoric to consumers.
Instead of offering a small loyalty incentive along with quality service and excellent products, the program should be integrated into the business's entire infrastructure. A loyalty system isn't just a tool, it's a great way to create a customer-focused business.
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