5 Common Mistakes of Loyalty Programs

Loyalty programs can be a clever marketing tool, as the overall goal is to get customers returning again and again. But they’re not as easy to implement as you may think and there are plenty of mistakes that people make when trying to initiate one. Here are a few common ones to help you avoid them!

1. Thinking all the technology is the same

Technology within any area of your business is rarely a one-size-fits-all and certainly when it comes to loyalty programs, you need to do your research. Choose a provider who aligns with your company’s needs, as they’re all tailored in slightly different ways.

2. Not understanding your customers

This problem is not only one that we see a lot in loyalty program implementation but also in other areas. It’s so important that you know your consumers and fully understand their needs and wants. You need to carry out some market research and see what it is that would actually make them want to shop with you again. Would they rather receive money off or free gifts?

3. Doing the same as everyone else

It’s always wise to size up the competition in the world of business but this should never translate to directly copying them. First of all, customers aren’t exactly going to be enticed by the same thing twice and if they’re already shopping with your competitor, why would you expect them to swap to you if you’re offering the same? Second of all, you have no idea if what your competitors are doing is actually working! Research and compare, yes, but go your own way!

4. Choosing the reward at random

Don’t just choose your incentive based on the fact that it sounds good or because it’s what you yourself would want. Do your research to find out what your customers want the most and then make sure that it works for you commercially too. Customer loyalty isn’t exactly worth much if you’re not making a profit.

5. Overestimating loyalty

So you’ve started up your loyalty program – that means customers will be retained forever right? Wrong. One good idea doesn’t mean you can just give up. You always need to be evolving and offering something new to ensure long-term customer loyalty and that applies to both your loyalty program and your wider business.

Written by Dave Hughes

Dave is a front end web developer and graphic designer, with experience in e-commerce and digital marketing.

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