Wrong point logicSuccess lies in how well the point economy is crafted for the loyalty program. What’s the value of one single social share, friend referral or product review? You should attach monetary value to each of the customer actions you want to reward, and then estimate the overall ROI for the program. Without the right numbers, you can’t achieve - or even measure - the results.
Loyalty mechanics don’t fit to the achievable goalsThe program doesn’t serve the appropriate goals (a loyalty program is for retaining customers, building a lovable brand, etc. not for acquiring new customers in the first place).
The program is not updatedA lot of loyalty programs fail, because marketers don’t put effort into keeping them fresh. If customers lose interest in the program (reasons for loss of interest include: no new rewards, no new rewardable activities), they won’t spend their collected points and won’t be motivated to collect more points. In other words, the program is not fulfilling its purpose: reactivating customers.
Irrelevant selection of rewardsThe last thing you want to do is create a loyalty program that does not solve your customers’ problems or satisfy their needs/wishes. Often brands think that discounts and special offers are all loyalty programs should be about. But in reality, loyal customers want something “more.” This can include special services or unique experiences - but in the end, they want to feel valued. Discounts can be offered by anyone. It’s the special extras that can really make a difference and boost true loyalty.