on July 28, 2022

The One Thing That Could Be Killing Your Loyalty Program

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No matter how well people like your product, your customer service plays a significant role in their opinion of your company and program. Customers will not want to be members if they feel mistreated or their problem isn't handled properly. A study shows that after a good customer service experience, 42% of customers would buy that product again. On the other hand, 50% are more likely to share their negative experience on social media after a bad customer service experience. 

Customers' respect for a brand increases when they see and like how the company responds to a problem. So if they handle it correctly, brand affinity and customer loyalty will rise. On the other hand, how a business responds to conflict or a problem tells a lot about them, so if the customer doesn't like a response, the brand could lose that customer completely. 

When a problem arises, the amount of time it takes to resolve it is a big deal in the eyes of the customer. When brands bounce complaints between different departments or managers, customers are less likely to return to the brand. Harvard Business Law found that "Loyalty members surveyed in May required an average of four contacts with the company before reaching a solution, and the process took 5.1 days. Non-members needed just 2.8 contact and 3.3 days". This study shows that although the member is a part of an "exclusive" program, they do not actually benefit from the status. Customers then question why they are choosing to support a company that isn't prioritizing their needs. 

Most, if not all, employees should be familiar with loyalty members, especially VIPs. They put a lot of time and money into your program, so it's a big red flag when customer service representatives treat their issues carelessly. To avoid this problem, ensure all customer service personnel know how the loyalty program works so that they are fully equipt to answer any and all questions. For example, if the customer service agent can answer a quick question, it avoids forwarded calls that delay the problem further. Customer calls and emails are an excellent opportunity for the brand to reach out after an issue is resolved and check up on the customer. While speaking with them, offer rewards or points for their feedback. 

Don't let bad customer service drive customers away from your great loyalty program. These are a couple of tips to promise that all your customers are treated fairly, building loyalty and long time customers.

Want more details on how this one change could boost your loyalty program? Reach out to us and help us help you!