Becoming A Business Owner: Entrepreneurship 101

Becoming A Business Owner: Entrepreneurship 101

4 Mistakes To Avoid With Your Customer Loyalty Program

by Penny Ferguson

Running a business can be challenging. While you are worrying about making a profit and keeping your employees happy, a successful business also needs to ensure customer satisfaction. One great way of keeping your customers not only satisfied but also interested in continuing to visit and utilize your business and services is with a loyalty program of sorts. Recent studies have shown that loyal customers will spend about 67 percent more than new customers. Therefore, using a loyalty program that ensures your existing customers are happy and satisfied can be a worthwhile investment. This guide will help you avoid making a few common mistakes with your loyalty program, improving customer satisfaction and your business's success even further.

Difficult to Join

One of the most common mistakes businesses' loyalty programs is making them too difficult to join. Customers want to reap the benefits of the program without putting in a great deal of effort, so it is important to streamline the process to join.

Make sure your customers do not have to manually or electronically fill out long forms during the registration process. This could definitely cause them to lose focus and become irritable, creating tension in your relationship and preventing them from joining the program or even visiting your establishment or website in the future.

For the most efficient and successful registration, allow customers to provide their email or phone number only. Most customers will happily provide this information in hopes of earning points and rewards because of their loyalty.

Difficult to Understand

Another mistake you may be making with your loyalty program is making it too confusing for customers to understand. Avoid complicated structures and new guidelines that will only confuse customers and decrease their chances of joining.

Opt for a simple approach for rewarding loyal customers, which may involve a point system. For every dollar spent, customers earn points that accumulate over time. They can choose to cash in their points for discounts, free gifts, or gift cards.

Moving up through a series of different tiers is a good option, but avoid complicating the program with deadlines and expiration dates. This will only confuse and frustrate customers.

Unappealing Rewards

It does require effort on your customer's part to go through the process to register, always make sure that their purchases are logged into the program, and understanding the loyalty program, so offering them appealing rewards is imperative. T-shirts, a free cookie, or an upgrade to a larger-sized drink may be appealing to some customers, but the majority of customers will want and expect more.

One of the best ways to satisfy customers while ensuring they continue to make purchases is to offer rewards that benefit them and your business's success. For example, once a customer reaches a certain number of points, allow them the chance to cash in these points to receive a few dollars off their next purchase, or provide them with free shipping on any orders once they reach a certain tier level in the program. Another great option that will benefit your customers and your business is to offer your loyal customers the chance to shop special sales and promotions early.

Put yourself into your customer's shoes when choosing appealing rewards that will make the registration and shopping process more attractive over time.

Not Going Mobile

Mobile devices play a large role in a customer's shopping habits, so if you are not offering a mobile app to shop and track loyalty rewards, your customers may choose to shop elsewhere.

A good-quality app should be user-friendly so customers can shop without difficulty. Once signed in, your customers will be able to make purchases that will automatically be added to their loyalty accounts, ensuring all purchases are tracked and logged without much effort.

Whether you offer products or services, your business should reward loyal customers. This guide will help you avoid common mistakes often made when designing a loyalty program. Talk to a customer loyalty program company to learn more.


About Me

Becoming A Business Owner: Entrepreneurship 101

Launching my own business was the biggest undertaking I've ever done. It was a long process of research, development, market analysis, and statistical evaluations. I was so overwhelmed by all of the details that I wasn't sure what to think. Once I got through all of the finer points, I decided that it was time to create a resource for others who wanted to do the same thing. My goal was to build a single resource that aspiring business owners could use to get started. I hope that the consolidated information here helps you to feel more empowered as you venture out into becoming an entrepreneur.