Why Your Loyalty and Reward Solution Isn’t Working and What to Do About It
So, you’ve got a loyalty and reward solution that’s not exactly hitting the mark.
Perhaps you have bolted on rewards from an affiliate provider but they’re having minimal impact (and could be a source of frustration for your members).
Let’s dive into why it might be a damp squib and what you can do to turn it around.
1) Unclear Goals
The Problem:
If your goals for the loyalty and reward solution are as clear as mud, you’re going to struggle. It’s like trying to hit a target without knowing where it is.
The Fix:
Set clear, specific goals. What do you want to achieve? Engagement, retention, upsell? Make sure these goals are at the heart of any loyalty and reward decisions. And don’t forget to review them regularly to stay on track.
2) Lack of Integrated Approach
The Problem:
If your loyalty and reward scheme feels like it’s been stuck on as an afterthought, it’s going to come across that way to your members and won’t make an impact.
The Fix:
Make your loyalty & reward strategy part of your overall marketing strategy. It should feel like a natural extension of your brand. Use customer data from all touchpoints to create a smooth, integrated experience that keeps customers engaged.
3) Not Knowing What Your Members Want
The Problem:
If you don’t have a clue what your customers are after, your rewards will be as useful as a chocolate teapot. Generic offers just don’t cut it (and also don’t reflect brilliantly on your brand).
The Fix:
Ask your customers what they want! Use surveys, feedback forms, and data analysis to find out their preferences. Tailor your rewards to what they actually value. Use a solution that tracks how they interact with their rewards—see what works and what doesn’t.
4) Poor Experience
The Problem:
If it’s tricky in any way for them to access a reward, they simply won’t and they won’t try again. If your user experience feels like solving a Rubik’s Cube blindfolded, your customers won’t stick around. A clunky experience is the quickest way to lose interest.
The Fix:
Make things easy-peasy. From accessing the rewards, to finding a reward they want. The simpler the better! Mobile-friendly options are also a must and please, please don’t force them to create/fill out a different login that they’ll forget! (A massive bug bear of ours)
5) Overly Complex
The Problem:
If your loyalty scheme gives your members a headache just trying to understand it, you know you’ve gone wrong somewhere. People don’t have the cognitive capacity to spend time trying to understand something, and as soon as they’re confronted with this they’ll switch off.
The Fix:
Keep it simple. Make the rules for earning and redeeming rewards easy to understand. Your customers should know exactly how they can benefit from participating. Transparency and simple language are key.
6) Not Marketing It
The Problem:
Even the best loyalty and reward scheme will flop if no one knows about it. Whether that’s making it hard to find for your members, or not making them aware in the first place. This is one of the biggest problems we come across.
The Fix:
Shout about it! Use all your marketing channels—email, social media, in-store displays, and your website—to let customers know about your rewards programme. The rewards add value to your members, and they like saving money so won’t be offended when you tell them about it!
7) Not Evolving It
The Problem:
A static loyalty and rewards programme is the same as a slowly dying one. If you don’t keep it fresh, it’s bound to become stale and your members will disengage.
The Fix:
Keep things dynamic. Regularly update your rewards and features based on performance and feedback. Seasonal promotions and limited-time offers can also help keep things interesting for your customers.
8) Treating all Members the Same
The Problem:
If you treat all your members like they’re the same, you’re missing out on a big opportunity. You might be neglecting your best customers while not giving others enough reason to upgrade.
The Fix:
Create tiers as part of your strategy. Offer special perks and personalised rewards for your top members. This creates an aspirational goal for others and makes your most loyal customers feel truly valued.
9) Ignoring the Power of Gamification
The Problem:
If your loyalty scheme isn’t using gamification or the tricks of behavioural psychology, it’s not tapping into the full potential of engagement.
The Fix:
Add some gamification elements. Points, badges, leaderboards, and challenges can make your programme more engaging. Use progress bars and milestone rewards to keep customers motivated. A little psychology can go a long way in driving the actions you want!
Wrapping up
By addressing these common issues and implementing these solutions, you can turn your underperforming loyalty and reward solution into a customer magnet. Keep it lively, relevant, and engaging to ensure your programme delivers real value and keeps customers coming back for more.
When loyalty and reward programmes work, they work well! But only if the organisation is truly committed to making it work and don’t see it as quick fix, or a bolt on. It needs thought, strategy and integration for real results.
We’re global experts in loyalty and reward solutions for sports and fitness organisations – if you want a no obligation chat about your current solution and advice on how to improve it, drop us a message!