1. Businesses Don't Promote It. One of the most important things merchants don’t do (or don’t do well) is promote their new loyalty program to their customers. You have a great new program, you’ve worked hard to make sure that the rewards would be enticing and exciting for your customers, however they’ll never know about it if you don’t tell them!
LYLTY offers free A5 and A4 info cards that you can place on countertops (or tables) to create customer awareness in-store. By far our best tool for awareness of your digital program is to hand out the LYLTY info business cards instead of giving the customer another of your old loyalty cards. Don’t forget to promote your program on your Facebook page and website if possible. Outline how the program works and highlight the great perks available. Explain the benefits of joining your loyalty program. Will customers receive a free coffee after the purchase of 10? Will they get to stand in the VIP express line next time? Could they win a chance to design their own food item to be placed on the menu next month? Ensure your staff is educated about the program and able to promote the benefits to customers in-store.
2. The Program is Too Complicated or it’s Too Difficult to Earn Rewards. If it takes a customer a year to earn a free coffee they’re likely to lose interest in your loyalty program, and once they’re no longer engaged they’re less committed to purchasing with your business (vs your competitors). When competitors are offering similar products/services at comparable prices, you need a competitive edge to keep your business enticing. Special VIP perks are a great way to give customers an extra reason to choose you however, if your new members realize that they actually have to spend $1000 before they’ll earn a muffin, this will seem unrealistic and will likely cause disengagement with your customers. Additionally, if your program is too hard to understand, the same will happen. Customers don’t want to jump through hoops to chase rewards – remember this is a loyalty program, designed to reward their loyalty. The good thing about your customers using the LYLTY app is being able to see their points balance at a glance. Simple.
3. Businesses Don't Offer Relevant Perks.Providing rewards or perks that are not relevant to your customers could cause disengagement with your program. A skateboard shop offering boxes of nappies as part of their rewards will have significantly less appeal than a maternity clothing shop offering these nappies to their mum-to-be customers. Rewards don’t always have to be physical or free products. Some of the best perks are unique items that customers could not otherwise obtain or purchase on their own. The skateboard shop in our above example could instead offer the chance to meet their favorite pro skateboarder or customers that earned X points are invited to an exclusive skate park event – just for them! These offers are not only relevant to the customer but they’re awesome perks that are exclusive to your program and tailored to your VIPs. If you don’t know what your customers want, just ask them! Now is the chance to get to know them better. Your loyalty program will allow you to track customer purchases and review your most popular specials to identify what your customers appreciate. Customers will be happy to provide input into their loyalty program and you’ll end up with some great ideas as well as some additional insight into your loyal customers.