Impact Learning Systems

GET TO THE HEART OF CUSTOMER EXPERIENCE

Are Loyalty Programs a Thing of the Past? Sarah Hedayati

loyalty program software.png Are Loyalty Programs a Thing of the Past?When you men­tion loy­alty pro­grams to some­one, most of the time they roll their eyes and tell you a story about the worst loy­alty pro­gram ever. After hear­ing mul­ti­ple sto­ries like this, I am forced to ask, are loy­alty pro­grams a thing of the past?

If you have a loy­alty pro­gram or are think­ing about devel­op­ing a loy­alty pro­gram, this is the blog post for you. You need to keep the fol­low­ing in mind to keep or develop a reward­ing loy­alty program.

Cus­tomers Want to See Results

If you offer a loy­alty pro­gram, cus­tomers want to see they are sav­ing money or earn­ing points to receive some kind of perk. If it takes too long or they never receive a reward, you will lose their loy­alty. Peo­ple leave loy­alty pro­grams when they no longer feel the reward is within their reach.

Loy­alty Rewards Shouldn’t Be Complicated

If your cus­tomers have to jump through hoops to get their reward, they won’t find your loy­alty pro­gram reward­ing. You want your cus­tomer to prove they are loyal to your com­pany, but once it comes time to get their reward it needs to be sim­ple. If you make it too com­pli­cated, you will gain annoyed cus­tomers instead of loyal customers.

Con­sis­tency is the Key

While it may take time to develop a loy­alty pro­gram that works, you need to stick with one idea. If you con­stantly change the way your loy­alty pro­gram works, you will frus­trate your cus­tomers. Most peo­ple like to know if they buy ten cof­fees, they will get one free. If they come in one day and find out your loy­alty pro­gram has changed, they will feel like you no longer value their loy­alty. If you decide to change your loy­alty pro­gram, remem­ber to give cus­tomers time to adjust and always honor the orig­i­nal offer for a rea­son­able period of time.

Focus on Rela­tion­ship Building

Loy­alty pro­grams are built to fos­ter rela­tion­ships with cus­tomers. Michael Hem­sey, pres­i­dent of Kobie Mar­ket­ing, says in an arti­cle from Inc. Mag­a­zine, "You should fig­ure out which rela­tion­ships are most impor­tant for your busi­ness and design a rewards pro­gram that cul­ti­vates those cus­tomers." If your loy­alty pro­gram won't reward the cus­tomers you want com­ing back, you need to fig­ure out what will moti­vate your key customers.

Loy­alty pro­grams can be extremely ben­e­fi­cial to busi­nesses. One of the most impor­tant things to keep in mind is loy­alty pro­grams should sup­ple­ment your loy­alty strat­egy not act as your loy­alty strat­egy. If you’re inter­ested in learn­ing more about loy­alty pro­grams, check out another blog post on valu­ing loyal cus­tomers.

We are advo­cates for pro­vid­ing cus­tomers the best expe­ri­ence pos­si­ble. Impact Learn­ing Sys­tems is the leader in cus­tomer ser­vice skills train­ing and con­sult­ing. Cus­tomer ser­vice is all about the pos­i­tive expe­ri­ence you provide.
11 Are Loyalty Programs a Thing of the Past?
Sarah Hedayati
View all posts by Sarah Heday­ati
Share and Enjoy:
  • printfriendly Are Loyalty Programs a Thing of the Past?
  • email link Are Loyalty Programs a Thing of the Past?
  • facebook Are Loyalty Programs a Thing of the Past?
  • twitter Are Loyalty Programs a Thing of the Past?
  • linkedin Are Loyalty Programs a Thing of the Past?
  • googlebookmark Are Loyalty Programs a Thing of the Past?
  • digg Are Loyalty Programs a Thing of the Past?
  • delicious Are Loyalty Programs a Thing of the Past?
  • technorati Are Loyalty Programs a Thing of the Past?





Alltop, all the top stories

We're an Alltop blog, and regularly contribute to The Customer Collective and CustomerThink.

Back to Top

Thank You for Visiting Impact Learning Systems

Thank You for Visiting
Impact Learning Systems, now part of MHI Global

VISIT MHIGLOBAL.COM

 

or

Continue on ImpactLearning.com