There are several myths surrounding loyalty programs, and many 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!
While it’s not cheap to start a program, it's not called an investment for no reason. There are several affordable options for launching a program that aligns with 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; even minor additions will go a long way to providing extra perks and rewards for customers. Loyalty programs help you stand out from the crowd and improve customer experience, credibility, and loyalty. Don’t look at a loyalty program as a significant 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.
While loyalty programs are standard in a majority of “traditional businesses” like grocery stores and airlines, that does not mean they are any less effective for brands in other industries, such as B2B, transit authorities, or e-commerce. There are some spaces where implementing a loyalty program is still considered a newer concept, but more and more corporations are realizing the significant advantages these programs offer. Loyalty programs help you better gather and track your customers' preferences and habits across both digital and physical interactions. The time when traditional loyalty programs were only considered a good fit for punch-card type businesses like cafes or coffee shops is over; thanks to significant 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.
While a loyalty program can seem complicated, it definitely doesn’t have to be if you’re using the right loyalty platform and tools from the start. There are many moving parts when launching and running a loyalty program, but with the right software in place, much of the program can run smoothly with minimal manual processes. An integrated enterprise loyalty platform can easily automate key tasks, including 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 your team's shoulders, as they do not have to get bogged down by day-to-day manual tasks.
Offering discounts is a quick and easy way to attract new customers, but it can set your business up for some difficulties. If your company is known to offer discounts at random, customers will hold off on making purchases until your next sale. This can hinder your brand from achieving consistent purchases and customer loyalty. When you implement a loyalty program, the goal is to encourage your customers to return more frequently, knowing they are valued and appreciated. Your customers will be able to earn discounts in other ways through continuous use of your program, leading them to earn more personalized rewards on 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 circulating, it's understandable why a brand would be hesitant to launch a loyalty program. It’s essential to gather all information before jumping into something like this. Hopefully, with some of those myths cleared up, launching a program is in your business plan for the year.