There are always ups and downs when it comes to running a successful business so don’t let the downs discourage you from continuing your loyalty program. You might not even realize all of the benefits a loyalty program is bringing to your brand. Companies are popping up left and right and you must be working to differentiate yourself from them to show your customers why they should stick with your program. Before you pull the trigger and cancel your program, look at some of the repercussions it will cause to your business and the relationship with your customers.
Zero-party data is consumer data that is self-reported by the consumer. What makes zero-party data stand out is that customers proactively share their data with a brand which is a great way to retain customers. The cost of attaining an existing customer is far less than acquiring a new one, so being able to gather current customers' data and market towards them correctly is key to avoiding customer churn. Without this data, you are blindly throwing marketing collateral at your customers and hoping that it fits their needs. Before you hit the cancel button on your program, think about what it will cost your company, figuratively and financially, if you lose the ability to gather that kind of crucial data.
Developing and keeping customer loyalty should always be the most important factor when making decisions on your loyalty program. When you cancel your loyalty program you are putting your members in a dilemma of having to choose to either stick with you despite not getting any rewards from their purchases, or they could join a new loyalty program and purchase products while earning rewards. If someone else is offering products at a cheaper price for their members, people are going to leave your brand. When a customer is loyal to a brand they are most likely recommending you to people around them. If you cancel your program, you are not only losing them as customers but you are also losing potential customers that they would have brought to you. You will not only lose their loyalty but you will also lose their trust which is hard for a brand to regain.
More Expensive To Start Over
Taking the time to end your loyalty program and start over may not be as cost-effective as you think. Without a loyalty program, you are going to have to work twice as hard to make your customers stick with you instead of choosing other companies that offer loyalty programs. With inflation on the rise, having a loyalty program gives your members a sense of stability with the uncertainty surrounding the economy. Why should they stick with a brand that will not offer them any incentives, rewards, or discounts when other brands are giving them those benefits? While a loyalty program does cost your business money, losing it and starting over is not the cheaper option.
There are several things you can try before you decide to cancel your program. Here are a few examples:
Canceling your loyalty program is not something that you should do lightly. It will cause you to lose long-time customers, insightful customer data, and money you thought you would gain. Look into revamping your program and getting your customers excited again about what you offer!
Still have some questions? Reach out to us today and see how we can help you bring your loyalty program back to life!