6 Reasons Why Reward Strategies Can Flop (and How to Keep Yours from Tanking)

Reward strategies are proven to work…however, they also have the potential to bomb! A lot of these may seem common sense but it’s incredible how often companies forget these fundamentals. Here’s our guide to avoid these mistakes!

1)     Undefined Goals

Problem: Without clear goals, your rewards program is like a ship without a compass. It might not steer customers in the right direction.

Why it’s a problem: It's hard to design something that clicks with your customers when you're not sure where you're headed. This confusion often means wasted time and resources with little to show for it.

Fix It: Set clear goals! Whether you're aiming to sell more, keep customers around, or upgrade their membership, make sure every part of your rewards plan points in the same direction.

2)     ‘Meh’ Rewards

Problem: If your rewards don’t sync with what customers love, you won’t grab their attention or keep them interested.

Why it’s a problem People won't bother with rewards that don't excite them. It's like trying to sell ice to polar bears—it just won't work.

Fix It: Get to know your customers. What makes them tick? What gets them excited? Craft rewards that genuinely matter to them.

3)     Same Old Rewards, Everywhere

Problem: If your rewards are as common as air, they won't set you apart from the pack.

Why it’s a problem: If customers can find the same stuff anywhere, why should they stick with you? It's a missed chance to stand out.

Fix It: Be different! Spice up your rewards with something unique, whether it's extra special perks, more goodies, or a downright awesome experience.

4)     Poor Integration and Bad UX

Problem: If your rewards system is a maze or a headache, customers will run the other way.

Why it’s a problem: A frustrating user experience is like telling customers, "We don't really care about you." Not a great look.

Fix It: Make things smooth. Integrate rewards into your customer journey seamlessly, so it's easy for them to dive in. Keep it simple and enjoyable.

5)     Nobody Knows About It

Problem: If you don't shout about your rewards, customers will never know what they're missing.

Why it’s a problem: Your amazing rewards won't do squat if no one knows they exist. It's like throwing a winning pass without anyone there to catch it.

Fix It: Shout it from the rooftops! Tell your customers about your rewards regularly. Get your marketing team on board—they're your secret weapon.

6)     Set It and Forget It

Problem: If you launch your rewards and forget about them, they'll soon become history.

Why it’s a problem: Just like fashion trends, rewards need updating. Neglecting them means they become duller than dishwater.

Fix It: Keep it fresh! Regularly check how your rewards are doing. What do customers love? What needs a tweak? Stay on the pulse to keep your rewards offering in the spotlight.

Want to know more?

Discover how a well oiled reward strategy can support your objectives.

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