Why So Many Customer Rewards Strategies Fail

Which of the gifts above would be more tempting?   Most say the colorfully wrapped, close-at-hand, easy to grab one, of course. 

In comparison the other gift looks simply “blah;” it’s old and it’s tired and it’s not readily accessible. Similarly, that’s what is wrong with many customer loyalty programs today…there are too many that are similar, they are not at all temptingly packaged and they are often too difficult to use. Does this sound like your customer reward system? If so, it’s time to change up your customer service strategy so your rewards truly benefit you and your customers.

I used to frequent a drug store that was convenient because it was close by. The pharmacy was well-stocked and well-run. But I soon became disenchanted with what was billed as customer discounts and customer savings. They were never applicable to the products I needed when I needed them. They required special cards which were often “in the other wallet.” They came on extra-long paper receipts with details on limits of timing and products that were hard to read. In other words, this so-called rewards program backfired. It became such an annoyance that I took my drug store business elsewhere. 

What are the characteristics of rewards programs that work? Here are a two that you should consider as part of your customer service strategy:

• They stand out from the crowd.So many services offer points and, at first, it worked. Credit cards, airlines, retailers, vacation rentals, hotels. But soon the field got overloaded. It was difficult for customers to keep track of the points they had earned and to cash them in before the points expired. Rather than differentiate a business, the rewards system was just more of the same. 
  What you need to do is to find a reward that actually benefits the customer in an innovative way…like the Nordstrom program that keeps a record of such information as their customers’ size and color preferences. These records can be easily accessed to save time as customers use the Nordstrom personal shopper service. And if they use the store-branded card, they are automatically mailed a $20 certificate when their purchases reach a certain level. The shopping experience is improved and cashing in is made easy.
  
• They provide true value to the customer.Too many reward systems are designed to benefit the business, not the customer. Find out what would really excite your customers and you will find the key to their loyalty. Consider the hotel chain that recognized their customers were suffering from “point’s fatigue.” They looked for authentic, memorable, local experiences that would enhance their customers’ stay. They offer experiences “from visits to local markets, followed by personalized cooking lessons in the native cuisine to behind-the-scenes tours of museums.”

Loyalty programs are a good way for companies to encourage a target customer’s repeat business and to live your brand promise. But to be an effective arm of your customer service strategy, differentiate your program from others and see that it brings real value to your target customers. 

Learn more at: http://www.lsaglobal.com/customer-service-strategy/