Myths About Customer Loyalty Programs

Customer loyalty programs are everywhere nowadays. Your favorite retail stores have them, your friends’ favorite retail stores have them, everyone’s favorite retail stores have them, or that is at least how it seems.

While plenty of good comes from these, there are also plenty of myths that have been formed for customer loyalty programs — and we are about to tackle five of those myths for you.

They Are Guaranteed To Increase Sales

Wouldn’t that be nice? After all, sales is a major part of the equation. However, customer loyalty programs can go wrong in a hurry if they are not set up properly — just like with anything in life.

While a company’s end goal is, of course, making money, customer loyalty programs are for the — you guessed it — customers. Therefore, these loyalty programs must, in some way, benefit the customers. If they don’t achieve that feat, then the loyalty part will go out the window.

There Is A Blueprint For Success

Wrong. Customer loyalty programs need to be different for any given company. Sure, there are some exceptions to the rule, but these loyalty programs need to go hand in hand with whatever the brand is.

To make a long story short, there is no blueprint to success, because every company (and its customers) is different.

The Checkout Process Becomes More Difficult

You would think that since another step is being added to the process, but really all it takes is an extra swipe of a card or typing in a phone number. Not to mention, sometimes your phone can be a one-stop shop for all of your customer loyalty program needs.

Yeah, technology is a very powerful thing and one that is making many lives that much easier.

They Work Better When Reward Is Bigger

Or, a better experience through and through works better. Value is nice, of course, but customer loyalty programs are for repeat business — they aren’t intended to be a one-hit wonder.

If your loyalty program is set up really well, then it will have more and more customers returning for more, and a large reward will have nothing to do with it.

Customer Loyalty Programs Only Work For Select Customers

If your customer service is rocking (meaning your customers are very happy with what they see), then that is the main takeaway. Customer loyalty programs are about the loyalty. Treat them right, and you could have plenty of loyal customers on your hand. Exclude some (or many), and the opposite could come true.

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