Where customer loyalty programs are failing and how companies can fix them

Customer loyalty programs might be missing the mark and failing to attract and retain clients if companies do not use them as an opportunity to further engage with customers and make them feel special, reports Business 2 Community.

Customer loyalty programs might be missing the mark and failing to attract and retain clients if companies do not use them as an opportunity to further engage with customers and make them feel special, reports Business 2 Community.

While the programs have great potential to reel in consumers - 46 percent of surveyed shoppers said they have increased the amount they purchase from a company if they will earn rewards and 54 percent said they would consider doing the same, a ClickFox survey revealed.

However, some of the customers who sign up don't become active users. According to the 2011 COLLOQUY Loyalty Census, the average U.S. household participates in 8.4 loyalty programs, but belong to a total of 18. Mashable reports that businesses can improve the effectiveness of their programs and earn customer satisfaction and loyalty by using mobile payments systems to provide better targeting.

The proliferation of mobile devices makes it easier for companies to send messages directly to consumers who are in proximity of a store, the source reports. CVS is one company that has gotten on board, using a mobile application that works as a loyalty program and allows customers to earn discounts and redeem rewards point, according to NFC News.