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Loyalty Programs: 4 Mistakes You Don’t Want to Make


Customer Loyalty Program MistakesRewarding your loyal customers is one of the surest ways to get them to come back again and again. Companies with loyalty programs are able to offer special deals and promotions to their best customers. A customer loyalty program is not only a great way to reward loyal customers – it can also help you attract new ones.

Creating a customer loyalty program doesn’t have to be difficult. In fact, it can be relatively easy if you do your homework. The following list will help you avoid some of the most common mistakes that businesses make when creating a loyalty program.

1. Complicating Matters

One of the most common mistakes that companies make with their loyalty programs is complicating matters. From a customer’s point of view, loyalty programs should be as simple as signing up, making purchases, and receiving rewards.

If you make a loyalty program too complicated, the majority of your customers will not sign up for it. As result, those customers will have less incentive to purchase your products or services, which means less business and profits for you.

Make your customer loyalty program as simple as possible by simplifying the process of signing up and receiving rewards. You should also make it very clear how your loyal customers can earn and use their rewards.

2. Making Rewards Unattainable

Customers who sign up for a loyalty program expect to be rewarded for being loyal. While you shouldn’t make the rewards for your program too easy to obtain, you should make it so they can be realistically obtained by loyal shoppers. If your customers perceive that it’s too difficult to actually reap the rewards that they earn, you’ll lose their loyalty, which means that you’ll also lose their business.

Rewards that expire very quickly are often considered to be unattainable. Also, you should avoid creating a loyalty program that requires your customers to spend an exorbitant amount of money in order to earn a very small reward.

3. Charging For Membership

This one may seem like a no-brainer to some, but you’d be surprised at how many businesses actually attempt to charge for their loyalty programs. Customers join loyalty programs because they like being rewarded for spending money that they will spend anyway. If they have to pay money to save money, however, they will be less likely to sign up.

Even if customers do sign up and pay for membership at first, they may quickly realize that the price of your program actually outweighs the benefits. Once they realize this, they are sure to cancel their membership.

4. Letting Promotional Efforts Slide

Once your rewards program is set up and several happy, loyal customers belong to it, it’s easy to let your promotional efforts slide. Companies that don’t promote their loyalty programs to new customers, however, often lose out on business.

Promote your loyalty program as much as possible. Put ads in your local newspaper or on your local television and radio stations. In addition, make sure that all of your employees are knowledgeable about your loyalty program, so they can offer memberships to customers who have not yet signed up. By keeping current members happy and actively recruiting new members, you can build up a reputable rewards program that everyone wants to be a part of.

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