December 22, 2021
A good loyalty program is crucial in this era of personalization, where most big businesses are driving sales from customer loyalty. But the question is, what does a good loyalty program look like, and how will you assure its success?
This blog will unwrap those key ingredients that make any loyalty program successful or fail.
Let’s understand the failures and successes of the loyalty program.
Understanding the loyalty failures-
A few years back, Starbuck tried its hand in a great loyalty program and left the idea of offering a free cup of coffee after purchasing 15. These points used to have very low reward rates called gold stars. But they changed this program and made it 125 stars for the same cup of coffee.
But the plan turned negative and grew worse for Starbucks. After that, the team did not take it seriously due to lack of communication and made headlines on Twitter with negative impacts on their sales and reputation.
Why doesn’t it work?
The huge poor example of a loyalty program was a failure because of the unsuccessful customer engagement attempt that decreased the number of return customers. It did not make customers happy or attract them to return for more.
Here are the critical gaps:
- Big gap in customer engagement
- Less social media activities for the same
- Not reaching multiple channels
- Unhappy and unsatisfied customer
Understanding the loyalty success-
One of the great examples of the Loyalty program of AMC movie stubs card. They focus on customers’ requests for a free program and offer two levels of the program, one for those who can spend and the one who can’t. They prepare a loyalty program for both customers and successfully engage those who are not looking to spend. In this program, the second type of customer gets rewards for those who can spend.
Why does it work?
This loyalty program better understands customers and offers high rewards like ticket line skip, better refreshment, and more. Also, they successfully use their social media by creating the right engagement and hashtags. By using multi-channel effects, they gain a positive response.
Here are the key factors:
- Engaging offers
- The right use of Social media
- Trendy posts and hashtags
- Multi-channel effects
- A better understanding of customer’s mind
These examples show how money is a motivating reward for customers. But above that, you need a good team. Also, that could make this worth spending money and could grow your business.
Why NearCustomers?
Both loyalty programs make it clear that success depends on customer engagement, which is often possible with an experienced loyalty program service. NearCustomer will make sure your brand’s loyalty program creates all those concepts that work positively.
Looking for a well-experienced loyalty service?
Contact us today!
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