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3 Reasons Why Your Consumer Loyalty Program Is Losing Steam

Instituting consumer loyalty programs is one of the ways wherein companies can encourage their customers to come back for a repeat transaction. However, many of these programs aren’t working as well as they should. If your business is one of those that are having problems with retaining loyalty program members, read on. This short article will walk you through three of the most common issues that plague these programs and what you can do about them.

Lack of Communication

Individuals experiencing this challenge can actually be split into two groups: people who are unaware of your loyalty program and those who know about it but aren’t currently in the loop. Obviously, since the first group doesn’t know about your program at all, you can’t expect them to sign up. While you can resolve this with a large publicity campaign, you can also start with small steps. These include instructing your frontliners—such as the cashiers at the check-out counter—to tell clients about the program and offer them to sign up.

The second group–those who aren’t in the loop–are simply people who have already signed up for the loyalty program but have forgotten all about it. As such, they’ve become inactive; you have to remind them again that your program exists. To do so, you can email them once a week about new promos or special deals for members at your store, or you can do it the old-fashioned way by sending them a brochure in the mail.

No Easy Rewards

Like the first problem, there are two factors that come into play when your customers think there are no easy rewards in your program. First is the issue of redeeming rewards that are already available to them. If your loyalty program requires members to jump through hoops—such as needing to fill out stacks of paperwork—just to be able to redeem a small token, then people will just say forget about it.

To prevent this problem from happening, it’s good to invest in an efficient consumer rewards platform that can be accessed online or via an app. That way, your members can redeem rewards easily, encouraging them to remain active in the program.

Meanwhile, the second part of the problem is about the available rewards themselves. If the first tier of your loyalty program is very hard to reach—for example, something that requires a purchase worth hundreds of dollars—people will just get discouraged. Or maybe the rewards are not commensurate with the effort required to attain them. Hence, make sure that your first tier of rewards is easy to attain; leave the difficulty to the top-tier or premium rewards.

Lack of Leadership

Of course, just like any other program in your company, it’s important to have stable leadership at the helm of your consumer loyalty program. After all, a change in leadership can also lead to a change in the direction of the program, which can confuse or even disappoint current members. Hence, while sometimes you cannot avoid changing the head of the program, it’s important that the direction of the program remains the same.

As you can see, there are several reasons why your consumer loyalty program may be losing steam. By implementing the tips offered by this guide, you can hopefully get back on track to achieving your consumer loyalty goals.

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