Is Your Loyalty Program Working?

Loyalty program smWhen it comes to bringing customers into your store, there are a number of different ways to achieve this. From great customer service, to organization and a pleasant shopping experience, price offerings to availability on shelf, there are a vast array of reasons people choose to shop where they do. Another reason is a great loyalty program. Loyalty programs are becoming almost the norm in the CPG world, and if you have one, or are thinking about starting one, you are not alone.

That being said, there are some that are not getting the intended results. We found this great article from Forbes recently that we thought we’d share, one that discusses why some programs are not working and offers tips to help learn from bad practices of the past. Check it out here: http://www.forbes.com/sites/bryanpearson/2015/12/16/7-loyalty-lessons-from-reward-programs-past/.

Here are a few of our favourite tips:

  • If your customer is receiving coupons or promotional material in the mail, that is great, but only if they use them. For example, if a customer is receiving coupons for something they don’t use, and never buy, they are essentially worthless, and can actually have an adverse effect on buying behaviour. According to Forbes, “only 11 percent of loyalty programs offer rewards that are personalized based on a customer’s purchase history or location data,” and that means that the other 89% are receiving canned materials not relevant to their shopping habits.
  • Amassing points to later use for a discount is great, but sometimes you have to offer a little more. Every so often consider a 2 for 1 point day or something along those lines, just to provide a little extra incentive.
  • Mass communication can be damaging. If a customer agrees to receive communications from you, don’t take advantage of that. Sending weekly (or more) emails that hold no real value can just end up leading that customer to the unsubscribe button, rather than your store. Make sure that everything you send offers real value, otherwise don’t send it.
  • If you want to go big, do it right. Trying to do too much and then failing can leave a bad taste in the customer’s mouth. Avoid, at all costs, offering something to loyalty members, but then failing to follow through.
  • You have to be competitive. It is great to have a loyalty program, but if that program isn’t as good as the next store’s it isn’t going to accomplish anything. We are not suggesting you give away $100 in free groceries every day, but at least make sure that what you are promoting is something that will make the customer come to you, rather than the competition.

If you offer, or are considering offering, a loyalty rewards program, use these loyalty lessons to help ensure it goes off without a hitch!

Want more advice on dealing with the competition in retail? Storesupport can help. Get in touch with us today by calling 1-877-421-5081.

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