Most US loyalty programs fail because they reward only purchases, ignore how customers actually shop, and never evolve after launch. Companies need to listen to customers and build programs that recognize the full journey from first interaction to repeat buying.
Today, over half of all companies in the US employ a customer loyalty program, and even more consumers as a percentage participate in them. Did you know? A report by Forrester in 2017 suggested that over 70% of adult digital consumers belong to at least one loyalty program? In fact, those who choose to participate are typically enrolled in 9 different ones. Yet it has become increasingly difficult for businesses to actually engender the loyalty the loyalty they're seeking. Why? Because businesses are unwittingly eroding their own loyalty programs. To stay on track and avoid such disconnects, businesses should listen to the voice of their customers. So what are these disconnects? Let's delve into them. Number 1: Customer loyalty programs are often one-dimensional. Have you wondered why programs lose steam over time? Their ROI tends to spike when the program is first rolled out, but plateaus along the way. This happens because most of these programs limit how customers can express their loyalty. Customers are instead recognized and rewarded for a single action. But even with that one action, purchase, there are a number of ways customer loyalty can be measured and rewarded in terms of purchase behavior. Take, for example, purchase frequency or average purchase amount. Number 2: Customer loyalty programs don't recognize the journey. Of course, purchases are not the only way customers engage with your brand. In fact, a customer's purchase is at the tail end of what could be a long, involved decision lifecycle or customer journey. Consider rewarding customer behaviors that lead up to the purchase. Number 3: Customer loyalty programs go stale after the initial launch. The sad fact is that most companies put all their strategic capital up front. They put tons of thought and effort into the initial design of their program and then never change it. Do any of these disconnects resonate with you? Maybe it's time for you to go the Fielo way and find out how you can recharge your customer loyalty programs for success. Head to Fielo.com today for more.
