Incentivising users for their good actions to motivate them to build behaviors that are not profitable to the whole ecosystem has been a time-tested method for unicorns. Concepts of loyalty programs of previous age are being employed for micro app interactions. According to the loyalty trends 2020, Loyalty programs with new features will be the second most important investment in the upcoming years after personalization. Hence, numerous businesses are putting their efforts into incorporating several incentivization techniques for their customers. A well-planned reward program aims to motivate customers to make frequent purchases and engagement.
Without a good depth on how to implement as well with lack of technology infrastructures, such initiatives can fail to result in losing huge upside opportunities for businesses. This blog will share a few potential issues or pain points with the current customer loyalty program, which businesses need to be prepared for.
- Confusing Loyalty program structure
Loyalty programs have been around and under customer engagement strategies for years. By default, businesses often assume their targeted audience familiar with the concept of rewards and loyalty points. This assumption somewhere creates confusion and remains as a loophole. Companies gradually generate multiple compensations and various attractive offers without any simplified instructions. Even the rules applied are complicated and twisted. Such practices make customers distrust companies’ offerings. Kwegg believes rewards and incentivization programs need to be seamlessly integrated within the product resulting in a need for sophisticated infrastructures to incentivize micro-interactions.
- Unappealing rewards
One size doesn’t fit all. Understanding your customer’s preferences is an essential part of marketing loyalty programs. It’s an inevitable fact that companies often lose their audience due to unappealing rewards marketing. Not every customer goes for discounts; some may like to join a membership or have various coupons. Businesses need to offer diverse reward programs with classified customer sectors as per their preferences. Diversification in offerings as per customers’ choices makes them feel recognized and connected to the brand.
- Frequent changes in policies
Many businesses prepare an informed economic infrastructure before releasing the reward programs. Due to their weakly planned finances, they often have to change their offered policies, which eventually leads to losing potential customers. Customer retaining strategies recline on a robust economic infrastructure, which seems impossible to achieve due to continually changing circumstances. Collect real-time data and use the best analytical tools to make better decisions and predictions.
- Obsolete program marketing strategies
Generally, it doesn’t matter how many numbers of offers and rewards you release every day for the customers. It will become obsolete after a while; as the saying goes, the more people get a thing, the less valuable it becomes subsequently. Reward and loyalty programs are only motivating when they still hold value.
For keeping the customers excited for the brand, the trade of coupons can be a great option. Customers can exchange their earned vouchers or coins with the desired one. It effectively gains the interest of customers in using the program further. Try to establish monetary and emotional loyalty bond with your customers.
- Lack of transparency
It’s hard to stay motivated if you don’t know your progress or how close you’ve reached a goal. With loyalty programs, many users remain unaware of what they’ve made. Customers show fewer interests or intent to avoid, after losing track of coins they’ve earned or how many more they need to avail themselves of their desired reward you offered. You can eliminate this fatalism by introducing progress charts, exciting gifs, or smaller prizes for customers to retain them further and keep their excitement.
- Issues with rewards redeeming
There’s no point in earning something if you can’t spend it well. Facing problems in redeeming leads to early exits of customers. And based on your redeeming explanation and terrible customer experience leaves a question on the brand to truly trust or not. Educating the customer about your redemption techniques plays a significant role in loyalty and reward programs. Ease the redeeming process for loyalty and reward systems with a better explanation, may it be via gifs, pictures, videos, infographics in any suitable way.
- Complicated ways to setup reward rules
You can’t use or implement something you don’t understand. The complicated and never-ending ways to setup reward rules make customers miserable. It seems like giving too much for not getting enough. Time is money; this goes for everyone. If the customer is investing their time on your application and not getting worth out, it fails both parties’ efforts. Kwegg helps with such problematic areas of setting suitable or best reward rules for your business.
Kwegg aims to serve B2B and B2C financial models. It works to put a value or token behind every user-interaction to build an advanced economic model for your business application. We assist your application to listen and keep a record of all the events performed by the user. Then help to configure various rules to reward the users. Kwegg’s own redemptions dashboard allows adding partner brands. We ensure data protection under policy compliance. Kwegg enables you to expand your business marketing capabilities and boost your program profitability.