The loyalty programs of yesterday may not have the same draw on today's customers and brands may realize less of a return on their investments. Since 2008, the number of consumers who say customer loyalty programs don't offer any real incentive has surged 50 percent, according to a study by Forrester Research, as reported by Mashable.
Additionally, about one-third of shoppers say loyalty programs don't influence their purchasing decisions, up 11 percent since 2008, the study found. Part of the problem is an overabundance of flash-sale sites that offer irrelevant deals.
One way to correct this is with targeted marketing, the source reports. Better targeting will change customers views about loyalty marketing and get them to recognize benefits in segments they care about rather than just focusing on the discounts, Suresh Vittal, Forrester’s customer intelligence analyst told the news source.
Another solution is to develop mobile programs that will encourage customers to engage in new habits, which can cultivate repeated behavior, according to Mashable. Rather than offering steep discounts, the programs reward repeat patronage. Moreover, using a digital platform instead of paper punch cards can help companies track the success of their customer satisfaction and loyalty efforts, according to QSR Web.