Many organisations don't see a return on investment for their customer loyalty program because they don't provide enough value to the consumer.
Successfully run customer loyalty programs require a fine balance between giving customers what they want and earning a return on investment for the business.
Walking that tight rope is difficult. Forego exciting rewards and you'll likely be left with an inventory of unwanted junk. Give consumers too much and you'll be in the red by the end of the fiscal quarter.
No one ever said marketing was easy, but the potential value with a program like this is too good to pass up. Organisations that have difficulty setting it up often look internally for answers, when really they should be asking what the customer wants.
Go to the polls
Widespread market saturation means there's a number of options for shoppers. It's up to the individual businesses to convert return customers, not the other way around. But executives and consumers don't always see eye to eye - great customer service and products aren't what keeps them around.
Brand loyalty is the key component of a successful customer loyalty program, but 62 per cent of consumers don't feel the companies they're most loyal to are rewarding them enough, according to Customer Insight Group.
Perhaps what's at fault is a fundamental disagreement between what the loyalty program is meant for. Roughly 73 per cent of customers believe these programs exist for companies to prove loyalty to shoppers, but 66 per cent of executives believe it's a chance for consumers to show their steadfast support, a KiteWheel study found.
"A loyalty program is for the customer, not the business."
The truth is, if organisations make their loyalty program as customer-friendly as possible, they'll reap the rewards.
Stand out from the crowd
Businesses with customer loyalty programs see 80 per cent of their consumer base buy more, according to the Australian Marketing Institute. When faced with a decision between purchasing from two or more companies, over half of all customers will shop with an organisation that has a loyalty program.
The value is certainly there, but if companies want to stand out from the crowd they need to offer more than the competition. Providing a digital platform with a slew of rewards ranging from televisions and gadgets to exclusive concert tickets will hold much more appeal than discounts, coupons and two-for-one deals.
It's clear customers want to feel rewarded for their loyalty, but many organisations simply aren't willing to take the extra step even though the return on investment opportunity is clearly there. Put the customer first in your business' loyalty program by contacting a Power2Motivate representative today.