77% of Loyalty Programs FAIL! Know why?

1. Limited Awareness about the program

Challenge

The logistical complexities of how to effectively connect with channel partners and allocate resources in a budget-friendly manner form a substantial hurdle.  

Our esteemed channel partners, whether they're retailers, mechanics, painters, electricians, plumbers, or any grey-collar craftsmen, are scattered across various locations. While every brand boasts a dedicated sales team, the realm of marketing often falls outside their primary key performance indicators (KPIs). 

Solution 

Think of launching a loyalty program like throwing an epic party – you want the right people to come, on time and you want them to stay back until the very end of the party. A loyalty program launch plan should give importance to user onboarding and must have a strategy focused on it. This required meticulous planning, trial and testing, multiple approaches and close monitoring.

2. Lack of genuine benefits

Challenge

Everyone today is part of multiple loyalty programs. Giving cash benefits is the new trend, it has its advantages but this approach makes the program transactional. The approach is lazy and lacks the essence of loyalty.

Solution

Introduce rewards that are user relevant, That help them improve their lifestyle or grow their business. Add in options that encourage repeat purchase and thus loyalty  like redeem against your own products. Invest in understanding your users' needs. And keep refreshing your offering.

3. Lack of hook in the program

Challenge

The grey-collar craftsmen’s mobile has limited memory, and often their devices are used as family phones and not personal phones. If the app remains unused, there's a risk of it being uninstalled. You know the saying. Acquiring a new customer can cost five times more than retaining an existing customer. Increasing customer retention by 5% can increase profits from 25-95%.

Solution

Brands, it's your mission to make that app a star attraction, a place your channel partners feel the need to revisit. Think freshness, think excitement, think repeat-worthy features that make it as essential as their morning tea. To achieve this, prioritise novelty, excitement, and features that invite repeated engagement. Grasp your users' needs  and challenges. Establish features that form habits, driving consistent usage and include surprises to keep the excitement live.

4. Lack of program health tracking

Challenge

Campaigns, campaigns, and more campaigns. But if they're running wild like untamed stallions, how do you ensure their health remains intact?

Solution

Imagine a dashboard as your trusty ranger, armed with a trove of analytics data to keep these campaigns in check. Yes, complimenting these campaigns by a dashboard showcasing analytics data would be great help. The landscape should remain dynamic, ever-evolving. As the metrics and measurements change, your dashboard should follow suit. It's a harmonious dance that keeps your campaigns on track. Analyse data, gather insights, and then wield these revelations to tweak your campaigns for peak performance.

5. Underutilised Communication and Value Proposition

Challenge

Consider possessing a grand piano capable of creating intricate melodies, yet playing only a solitary note. Similarly, when a loyalty program is not effectively harnessed to convey your brand's values and ethos to your channel partners, resulting in missed opportunities to resonate with partners and share the brand's core values effectively. 

Solution

It's time to invest, In a person or a team whose sole mission is to waltz with users, bridging that communication gap.Your loyalty program is more than a mere program – it's a direct channel to connect with your partners. Every interaction, every message shared should resonate with your brand's essence. Construct a comprehensive content strategy that harnesses the richness of this channel. 

6. Lack of a reason to stay

Challenge

Imagine throwing a grand party, but most leave before time. or they leave before the games, fun and food begin. Not so grand, is it? Well, that's the tale of low user participation in the loyalty program. Partners should experience the thrill of being part of a grand club with irresistible perks and ongoing growth. 

Solution

So, here's the twist – let's jazz up the experience. Roll out the red carpet with tiers and treats that whisper, "You're in for something special." Think of it as inviting partners into an elite club, complete with its own bag of perks. A loyalty program that's not just functional, but buzzing with excitement. Partners will no longer be mere spectators; they'll become the stars of the show. They will have reason to stay and they know of the benefits of staying longer.

7. Increased complexity in loyalty program

Challenge

Imagine you managed to bring in the users, you have created some amazing campaigns and growth stages too, but it's so complex that the users do not understand it and hence leave. Too tough to comprehend.

Solution

The trick? Simplify, then simplify some more. No, we're not suggesting baby steps, but clarity. Communicate like your program's survival depends on it, use multiple ways- video, creative, multilingual magic, and even the contact centre. 

If your partner has any feedback you should grab it, use it, and show them they're not just participants, they're your true PARTNERS in this journey.

Conclusion

Remember, building a loyalty program is like planting a seed. But nurturing that seed into a thriving garden? That's where the magic happens. Look for a service provider who not only has the tools but also the passion. It's a partnership, a journey that demands as much attention as your grandest ventures.

The quest for the right service provider becomes analogous to hiring a dedicated employee – someone who understands the long-term commitment and shares your vision. Just as you'd reference-check a potential employee, do the same for your service provider. After all, it's a relationship that'll grow, evolve, and determine the success of your loyalty program.

So, buckle up! The loyalty program terrain might be challenging, but rewarding.

Connect with us at https://t7e.in/loyalty/ and let's conquer these challenges together!

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