There are a number of myths surrounding loyalty programs and a lot of them can quickly turn brands away. Whether you are just beginning your research into loyalty programs or you are a seasoned veteran with an established program, believing some of these myths could be holding your brand back from achieving the best results possible. Let’s go ahead and clear up some of these myths about loyalty programs!
Myth #1- Loyalty programs are too expensive
While it’s not cheap to start a program, it's not called an investment for no reason. There are a number of affordable options to launching a program that fit your business goals and budget. It’s also crucial to remember that when you launch your program it doesn’t have to be the top tier program, the smallest additions will go a long way to providing extra perks and rewards for customers. Loyalty programs are what help you stand out from the crowd and improve customer experience, credibility and customer loyalty. Don’t look at a loyalty program as a big expense, look at it as a way to build your customer base into loyal, repeat customers which, over time, will lower your costs and boost profit.
Myth #2- Loyalty programs only work for traditional businesses
While loyalty programs are seen in a majority of “traditional businesses” like grocery stores and airlines, that does not mean that they aren't just as effective for brands belonging to other types of industries, such as B2B businesses or transit authorities or e-commerce companies. There are some spaces where implementing a loyalty program is still considered a newer concept, but more and more corporations are starting to realize the great advantages and benefits these programs can offer. Loyalty programs enable you to better gather and keep track of your customers preferences and habits across both digital and physical interactions. The time where traditional loyalty programs were only considered a good fit for punch-card type businesses like cafes or coffee shops is over; thanks to major advancements in loyalty platform technology and strategy, pretty much any type of company or organization can utilize a loyalty program to connect, engage, and reward their customers across multiple touch points.
Myth #3- Loyalty programs are difficult to manage
While a loyalty program can seem difficult, it definitely doesn’t have to be if you’re using the right loyalty platform and tools from the start. There are a lot of moving parts when it comes to launching and running a loyalty program, but with the right software in place a lot of the program can run smoothly with minimal manual processes. An integrated, enterprise loyalty platform can easily automate key tasks such as updating reward inventory, capturing customer activity across multiple channels, and awarding points or rewards according to established rules structures or earning criteria, such as reaching a new milestone. A loyalty platform with communication tools also allows you to build and set triggered member communications. Utilizing a loyalty platform with these features and others like them will take a weight off the shoulders of your team because they do not have to get bogged down by day-to-day manual tasks.
Myth #4- You don’t need a loyalty program because you offer discounts
Offering discounts is a quick and easy way to attract new customers but it can set your business up for some difficulties. If your business is known to randomly offer discounts, customers will hold off on making their purchases until your next sale. This can hold your brand back from seeing consistent purchases and customer loyalty. When you implement a loyalty program the goal is to make your customers come back more frequently because they know they are valued and appreciated. Your customers will be able to earn discounts in other ways through the continuous use of your program which can lead to them earning more personalized rewards towards their purchases rather than overarching discounts that might not apply to their buying habits.
Don’t let these (and other) myths scare you away from launching a loyalty program. With all of the misinformation going around, it's understandable why a brand would be hesitant to launch a loyalty program. It’s important to gather all information before jumping into something like this, but hopefully some of those myths have been cleared up and launching a program is in your business plan for the year.
Still not convinced? Reach out to us today and let us help you get started!