Loyalty Software Solutions have simplified the execution and implementation of a customer loyalty program. By removing the dependency on loyalty cards and making the operations cloud-based, new age loyalty solutions have undoubtedly made loyalty rewards programs smarter and more efficient. Additionally, the use of data analytics for personalized marketing has further improved their impact and success. However, businesses have erroneously come to expect web-based loyalty solutions as an answer to cultivating customer loyalty, even when the fundamentals of the loyalty program are not in place.

Any loyalty management software can only help you manage your customer loyalty rewards program better, and at most, offer you new tools and features. It can, at best, provide a strong and robust framework for your loyalty program to be more effective. But, what it cannot do is fix a customer loyalty program that is inherently broken. Let’s consider a few ways in which the same can happen:

Designing a Program Too Complex

If you are taking anything over 20-25 seconds to explain the essence and major features of your loyalty program to your customers, it might be worth relooking at the design of the same. Sometimes, despite best intentions, programs become too complicated and hence, limit customer engagement. Even intelligent Loyalty Software Solutions might not be able to accommodate an unnecessarily complex program.

Making Points Hard to Earn and Harder to Redeem

Any unwarranted term or condition that prevents customers from being eligible to earn rewards or redeem points will discourage them from participating in the program. If at any point, customers feel cheated or believe they are getting the raw end of the deal, your loyalty program will falter.

Unsolicited Cross-Selling and Upselling

When you throw offers and discounts on products and services that are of no relevance to the customer, they are bound to feel disenchanted with the program. In such a scenario, no matter the frequency or size of rewards on offer, the engagement levels of the customer loyalty management program will peak very soon. Furthermore, even relevant communication in future is at the risk of being rendered ineffective.

While the above pitfalls are easy to get into, you don’t have to repeat the mistakes others have made. Here are some practical and handy strategies to avoid the above missteps:

Ease of Use and Transparency

Not only must the program be simple to understand and navigate through, but the progress must be accessible to the customer in a transparent and easily accessible manner. This fosters trust and also gives the customer a tangible value on the savings they have by being a part of the program.

Simple Ways to Reward

Do not complicate the rewards process and go with tried and tested strategies: redeemable rewards points, buy X get 1 free offers, extra X% discount for program members, exclusive early product access etc. Remember, in order to make your loyal customers feel valued – you will actually have to make an effort to do so.

Restrained Marketing and Promotions

While it may be tempting to send out emails and push notifications as often as you wish, overplaying your hand might force your customers to ‘unsubscribe’ from your communication or worse, quit the loyalty program altogether. In order to make your marketing effective, make it timely; not just frequent.

At the end of the day, you need a fundamentally strong customer loyalty program and intuitive Loyalty Software Solutions, like Loyera, to support its execution. Both are equally important and will work in tandem to propel your business to new frontiers. Hence, a customer loyalty software solution can do a lot of things, but picking up the slack for an ineffective loyalty program isn’t one of them.

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