Common Mistakes of Online Loyalty Program

Loyalty program is very popular among both online and offline businesses for a long time. It is a win – win game. For customers, a loyalty program rewards them for their purchase or behaviors when shopping with businesses. For businesses, loyalty program enables them to have better relationship with customers, increase customer loyalty and sales ultimately.

A successful program brings multiple benefits to businesses as above, however, when comes to real, program sometimes doesn’t run as well as plan, especially with online businesses. In order to have best loyalty program performance, keep in mind the following common mistakes to avoid.

1.      Too complicated to understand

Your customers don’t want to be confused when exposed to your loyalty program. A too complicated program with many earning rules and spending rules definitely overwhelms your customers.

Examples:

Confusing earning Rules:

- Spend $20 to earn 4 points => It should be more specific such as: Spend $5 to earn 1 points

- Apply for only products with SKU: ABC, DEF, GHD,… (very long list of products) => It should include a category of products or if you want to list SKU, there should be just several ones, which are easy to remember.

Confusing spending rules:

- Spend 120 points get $20 discount => It should be more specific such as: Spend 6 points get $1 discount, which will be very easy to understand.

Key to remember: Simplicity is the best when starting online loyalty program

2. Lack of attraction

An online loyalty program is a promotion that motivates customers to purchase and return to your business, hence, it needs to be advertised as other marketing campaigns.

Make sure that customers are aware of your online loyalty program and understand how they can earn points and spend points easily.

There are two things that you should pay attention when promote a loyalty program as follows:

#1: Catch customers ‘attention and let them know the visibility of online loyalty program

The information must appear at your Home page in main website. Prepare an eye-catching banner for this information. Moreover, other marketing channels such as social networks, remarketing advertising, blog, pressed releases, etc should be considered seriously. 

#2: Let customers know the mechanism of your loyalty program

There should be an explanation page, which shows customers how the program works, how they can get points, spend points, etc. The explanation page should be short and visualized attractively.

Key to remember: Promote the program smartly and prepare a clear explanation page.

3. Setting NO goal

Having a loyalty program is a good idea for many businesses, especially for small businesses. However, starting with no ultimate goals is not a good idea. This mistake will prevent you from improving your loyalty program. Before start, make sure that you know what you want after a period such as: % Sales increase, number of repeats customers, etc.

Key to remember: Goals keep your program running in the right direction.

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Checkout Magento Reward Points Extension for a successfully loyalty program!