Customer loyalty programs are supposed to, well, benefit loyal customers. However, it would appear that some companies have launched customer loyalty programs just to look like one of the good guys, yet their loyalty program is more of a hassle than anything.
That is why you need to know how to spot the bad loyalty programs, and the five examples below are great ways to identify them.
Ones With Weak Rewards
Yes, customer loyalty programs don’t usually come at a price — well, at least not initially — but the reward itself is supposed to be worth it. If not, then what’s the point of a loyalty program in the first place? Surely, customers, especially the ones who weren’t that loyal, to begin with, will find a new company to shop at (or whatever it might be).
Opportunities Are Only For The Very, Very Loyal Customers
We understand — customer loyalty programs are for, well, loyal customers. The very, very loyal customers might consist of a very small group.
Getting an item free after buying 10 previous ones might seem like a good idea — and in many cases, it can be, if done right — but who is going to hold onto a punch card for that many buys?
For example, how long would it take you to buy 10 sandwiches from one place? Probably a long time, so hopefully you have somehow managed to hold onto your punch card after all of this time, or hopefully the loyalty program was digital from the start.
Reward Earning Period Isn’t Long Enough
If you barely have enough time to earn your reward, then what is the point? After all, earning a reward from one of these programs shouldn’t be a hassle.
Only Certain Purchases Are Rewarded
This one speaks for itself. If only certain purchases can earn toward a reward, then not everyone is going to benefit.
Rewards Are Harder Than They Should Be To Redeem
Once again, these customer loyalty programs should not be a hassle for the customer. However, hassle rears its ugly head when rewards aren’t easily redeemed. That is why having the ability to automatically redeem rewards is so valuable.
There are many signs when it comes to bad examples of customer loyalty programs. In the grand scheme of things, a company wants its rewards to be relevant for the customers.