We have discussed in prior articles about the importance of customer loyalty programs and how the best customer loyalty programs can structure business growth. After understanding the importance of a loyalty program, many businesses have hurried to launch a program for their own business. In their hurry these businesses have overlooked some key aspects of the program due to which their program is not a success.

A global survey mentions a person on an average is signed on to 10 different customer loyalty rewards programs but utilizes just 3-4 for them. Such loyalty programs end up with just 35% of their customers active on their platform. The loss of potential is obvious for everyone to see. The top three reasons why customer loyalty rewards programs can fail are:

  1. Poor engagement
  2. Lack of targeting and personalization in marketing messaging
  3. Not optimized for specific business needs

To address these failings, here are the three strategies that the best customer loyalty programs address:

360-Degree Engagement

The first failing can be addressed by engaging with customers on multiple levels. We have covered this in Touch points of a 360-degree loyalty program.

Targeting and Personalization

To address the second failing, it is important to understand the customers perspective. They are looking at the whole user experience. The best way to deliver great user experience is through personalization. Companies are trying to personalize ads, shopping experience and what not. Shouldn’t the same be expected of a loyalty program?

With machine learning algorithms, the best customer loyalty programs should be able to segment repeat customers into user segments. Each user segment is characterized by their buying behavior. So automatically the email marketing engine sends only relevant mails to encourage customer to make their next purchase. The same dashboard which computes points can have triggers set up for notifications.

When a customer’s activity triggers the notification engine, an email is sent out to acknowledge the customer’s actions. Similarly, if a customer has been inactive for an extended period an automated email can be sent out to try and win back the customer. This is the level of personalization that is possible through a customer loyalty rewards program. It gives out only the relevant message. With this approach you do not invade a customer’s privacy and avoid burdening them with generic information. Such personal touches go a long way to inspire brand loyalty.

Optimize Loyalty Program Structure

The third biggest reason a loyalty rewards program may not perform well is because of its structure. Businesses should not blindly opt for customer loyalty program vendors who set up an automated rewards program. Instead, businesses should look at customizable customer rewards programs.

At Zinrelo, we believe there is no ‘one-size-fits-all’ loyalty program. Each company will have its challenges to overcome and objectives to achieve. The loyalty rewards program should be structured to address the unique needs of the company. The structure must be customizable as the objectives may change. But it is important to get that flexibility only offered by the best loyalty rewards programs.

Structuring the loyalty rewards program is crucial for the program’s success. We have dedicated a section just for this in our loyalty guide to setup the best loyalty program for your customers. The guide will take you through each aspect of it.

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