We put so much thought and detail into loyalty plans these days, we just may be over-thinking — and sabotaging — them.
About 70% of customers don’t see clear the benefits of being loyal to one company, according to a study by Johnathan Barsky, a professor of marketing at University of San Francisco’s School of Business and Management and an internationally known consultant and lecturer in the area of customer satisfaction.
As customer experience professionals, how do we respond to something like this? We try to make a bigger, better-than-our-competitor loyalty program so customers finally find a reason to stay with us. And we forget that customers don’t want it to be that complicated.
Remember KISS
So when you sit down to create your next loyalty plan or revamp what’s already going, remember these four keys to a plan that customers want to be part of:
- Simplicity. The Keep It Simple, Stupid (KISS) approach is as important as ever. New and veteran customers should be able to understand the main points of the program within a minute. Too many details intimidate them. For instance, if you offer a points program make sure they know exactly what the accumulated points will get them.
- Value-added. Reward customers with things that add value to their relationship with you, their lives or their businesses.
- Convenience. Customers may want to be part of your loyalty plan but they don’t want to think about it. They just want to reap the benefits. So it’s your job to track their status and update them on their rewards.
- Memorable. They won’t remember when they need to renew or cash in their rewards. You need to reach out with their status and details on new incentives or bonuses. That helps to keep them interested.
