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5 Common Loyalty Program Mistakes (And How to Avoid Them)

Setting up a loyalty program is easy. Setting it up correctly is a different matter. These are the five mistakes we see most often.

1. A redemption threshold set too high

If a customer needs 50 visits for a reward, they will give up long before getting there. Start with a more attainable threshold and raise it gradually if needed.

2. No communication after signup

Many businesses sign a customer up and then never send anything again. Without a reminder, the customer forgets they are even enrolled.

3. Overly complex rules

If a customer needs a 5-minute explanation to understand how it works, the program is too complicated. Keep it simple.

4. No measurement of results

Without tracking whether the program actually increases visit frequency, you do not know if it is worth continuing.

5. Staff do not promote it

If staff at the register do not mention the program to every new customer, you are losing the biggest signup opportunity. Train them to mention it in one simple sentence.

The good news is all of these are easy to fix once you spot them.