5 Reasons Why Customers Abandon Loyalty Programs

5 Reasons Why Customers Abandon Loyalty Programs

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According to Business Wire, 84% of consumers say they’re more likely to stick with a brand that offers a loyalty program. Big brands such as Amazon, Starbucks, and Sephora, are amongst the most successful loyalty programs customers all over the world are subscribed to. 

However, businesses can still find it challenging to retain loyal and happy customers especially if they find a purpose to abandon ship. Here are five key reasons to get you thinking about why customers leave loyalty programs

Reason 1: Complicated registration process

Lengthy registration forms and unfriendly mobile environments are a guaranteed way to drive customers away from your loyalty program before they even get started. In fact, 70% of consumers fail to sign up for a loyalty program due to the inconvenience and the time required to complete a registration process. 

Initial loyalty sign-up forms should request a minimum amount of information needed to create a profile for your customer. Make it simple and prepare a FAQ page where clients can find answers if they’re uncertain. Create a limited number of fields as mandatory and a reward structure to push when members update their profiles.

5 Reasons Why Customers Abandon Loyalty Programs

Reason 2: Unattractive rewards

Based on a report by Statista, 58% of millennials say the top reason for abandoning a loyalty program is that the rewards aren’t compelling or relevant enough. Customers that feel the rewards they’re getting aren’t worth their loyalty is most likely to look for more appealing rewards from another brand. 

Keep your customers on their toes with exciting rewards like “BOGOF* Days”, “Double Points Days”, or gamified Scratch & Win or Spin the Wheel prize deals. All of these can be easily achieved with Como!

*BOGOF stands for Buy One Get One Free

Reason 3: Complex rewards structure

If the reward structure is vague or unclear, this will drive customers away from your loyalty program and they will eventually lose interest. Your loyalty program structure must be simple and easy to understand while your loyalty program page on your website should also have a clear breakdown of how points can be earned and used.

For example, Wendy’s has a dedicated page on their website that clearly explains its loyalty program and a FAQs landing page regarding points accumulation, redemption, and expiration. In this way, it shows customers the benefit of joining their loyalty program and becoming a member.

5 Reasons Why Customers Abandon Loyalty Programs

Reason 4: Failure to leverage customer feedback and data

According to a study by Appentive, 55% of consumers said they are not likely to continue being a customer of a company that ignores their feedback. Show your members that you value their loyalty by taking action from their suggestions. 

Leverage Como CRM capabilities and collect feedback from your members by asking them to fill out a survey. This will help your business reassess and make necessary improvements to the rewards and campaigns you are currently offering. Check your Como analytics to monitor your members’ purchase behavior or determine which products are mostly purchased together or which campaigns and rewards are most popular.

Reason 5: Lack of communication on program changes

Customers will become frustrated and abandon ship if you are making changes too often or quickly to your loyalty program. It also creates an impression of instability which can affect your members’ confidence in your loyalty program and suppress them from enjoying the improvements you’ve made. 

Regardless of the changes made, it is important to clearly explain to your customers the improvements made to your program and what they can expect from it. Customers like to know what’s going on and by keeping them in the loop, you can build brand trust and lasting customer loyalty.

Takeaway

Loyalty programs can help turn your customers into dedicated brand ambassadors for your brand. However, if your business is suffering as a result of one of these problems, now might be the perfect time to revamp your program and campaigns to ensure that you have your customers on board.

So what are you waiting for? Get in touch with your dedicated CSM or our support team to help leverage your loyalty program today! 

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