6 Signs Your Loyalty Program is Failing
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Customer loyalty programs – like everything else – evolve with time. Therefore, they need a few adjustments and tweaks to stay relevant to your consumer needs. However, most businesses aren't sure when to update their loyalty programs.

We've compiled a checklist of the top six symptoms that your current loyalty program needs refreshing. If any of the highlighted points apply to your case, read on to resolve the issue. You can increase customer engagement and protect your bottom line.

Regular Customers Don't Want to Join Your Loyalty Program

Do your frequent customers know about your loyalty program? If so, what percentage are joining? Answers to these questions will help you determine whether your loyalty program is effective. If people are aware of your program but aren't joining, it isn't enticing enough.

Usually, it is an indication that your rewards are irrelevant or dull. It could also mean that you have a tedious sign up process. You need to find a quick solution to remedy the situation.

It will help to introduce a short and simple signup process. Offering an incentive to consumers upon registration will help fix the problem. For instance, offer a discount on the consumers' purchases or a free accessory. Consider adding tempting rewards to your program to keep your consumers hooked.

Customers Aren't Actively Redeeming Rewards Despite Having Enough Points

What does it indicate when a customer has enough points to get a reward but doesn't redeem it? Well, the most likely answer is that the rewards aren't appealing enough to your customers. Either that, or you have a bunch of consumers not loyal to your brand.

These consumers like your product and frequent your business. However, they will quickly jump ship should another business offer a better option. Luckily, there is an instant fix to this solution that will keep such consumers loyal.

Start by offering something consumers want in your loyalty program. Use the feedback section to discover what customers like and don't like about the program. The customer is king – ensure you give them what they want.

Current Consumers are Finding Rewards Difficult to Attain

Most businesses get feedback that rewards in their loyalty programs are too difficult to obtain. It is common because no company wants to give away more than they can afford. Giving away products easily can damage profits within all organizations – whether big or small.

Most brands will calculate the minimum reward they can give without damaging their profit margins. However, customers quickly see through this trick. For instance, which customer wants to spend $500 on a single transaction to get a $5 discount?

Try introducing incremental rewards to help remedy this situation. It is an excellent way to keep your customers engaged and feeling appreciated. It will also help to structure a more generous reward system that doesn't affect your bottom line.

New Members Gradually Taper Off the Loyalty Program

Did you know that what matters with loyalty programs is continuous purchases? Having millions of members with zero purchases over some time counts for nothing. It usually means the initial excitement of signing up for your loyalty program quickly fades. Most customers drop off your loyalty program because they find it unsatisfactory or boring.

How can you remedy this situation? For starters, it will help to add spontaneous extras or side-promotions to your loyalty program. Consumers will better engage with your program when they stand a chance to win surprise prizes.

Ensuring you create a buzz around your loyalty program will keep your consumers engaged. With this, you can improve sales within your business. Doing this helps safeguard your bottom line while establishing you as an industry giant.

Long-term Customers Aren't Happy With Perks Given to New Customers

Even huge household brands face this dilemma within their loyalty programs. For example, Starbucks encountered this problem when introducing new changes to its current rewards program. Black coffee drinkers only gain access to rewards after spending thrice as much as other consumers.

Most brands usually roll out impressive benefits or incentives when acquiring new customers. Therefore, the existing customers feel isolated or irrelevant to the brand. It is only natural for them to think about abandoning the loyalty program.

Solving this issue comes down to introducing a tiered loyalty program. It means customers benefit more from your loyalty programs as they are promoted from one tier to the next. Doing this ensures more people see the benefit of staying loyal to your brand.

Interestingly, 57% of your consumers are more likely to enroll in your loyalty program if you have exclusive rewards and VIP tiers. Therefore, coming up with higher tiers is an excellent way to keep your long-term clients happy. You also motivate new customers to join your loyalty program and stay active.

Your Bottom Line is Suffering Because of Your Loyalty Program

Do not be that business that offers extravagant rewards, which ends up hurting your bottom line. Yes, it can be somewhat enticing to offer consumers more than you can afford. You get to increase signups and consumer spending instantly.

However, doing this is not sustainable in the long run. Soon enough, your bottom line will start suffering due to your loyalty program. What is there to help you prosper will become your downfall faster than you might think.

Find a balance between consumer spending and rewards - right from the start. Ensure you restructure your loyalty program to better suit your business. After all, consumers won't mind as long as you get them a worthwhile return on their investment. Do not run your business to the ground with overly generous rewards that you can't afford.

The Bottom Line

Is your loyalty program experiencing any of the above signs? Perhaps you need to switch to a more reliable and experienced loyalty app provider. At Glow Loyalty, we can help boost customer retention and sales by refreshing your loyalty program. Ensure you contact us today to find out more about how we can help safeguard your bottom line.


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