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4 Real Reasons Customers Leave Your Loyalty Program

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Jun 1, 2021 11:41:24 PM
why customers leave loyalty programs

Loyalty programs are a phenomenal way to improve your relationships with customers and reduce client churn. 

Through the right loyalty program, you engage your customers, give them a reason to keep interacting with your business, and keep your brand top of mind. 

However, just like people can churn from your subscription or membership strategies, they can abandon your loyalty programs too. 

If you’ve noticed more people failing to renew their subscription lately or not taking full advantage of their rewards, this could be a sign that you’re not getting the most value from your campaign. 

Here are some of the top reasons clients leave your program and what you can do about them

1) The program is too confusing

Customers like simplicity and convenience from the companies they interact with today. If your loyalty program feels like too much effort, your clients will abandon ship. 

Take a look at the structure you’re using for your loyalty campaign currently. 

Is it easy for your customers to understand how many points they need to earn to access a reward? Do you make it simple for customers to redeem their points, check their progress towards a goal, and even figure out which activities will earn them points?

Sometimes, brands trying to create a “unique” loyalty program will start adding new rules and concepts to the process. This might seem like a great way to make your program stand out, but it can lead to more confused customers. 

Keep it simple and offer an explainer page or FAQ where clients can find answers if they’re uncertain. 

An onboarding strategy with videos on using the loyalty program or a live chat service where clients can ask common questions might be helpful. 

2) The user-experience is lacking

How much value does your customer get out of your loyalty program right now? Do they earn points every time they make a purchase without fail? 

Or do your clients need to jump through hoops to earn rewards and prizes? 

Today’s consumers expect a streamlined, customer-focused experience whenever they’re interacting with a brand app. 

To determine whether you’re delivering exactly what customers need to remain engaged, listen to your audience. 

Provide a feedback page where customers can leave reviews about the program and make suggestions on what they’d like to change. 

When customers decide to “unsubscribe” from your service, add a section to the process that asks them why they’ve chosen to leave.

This will give you some great feedback you can use to enhance your program going forward. 

You can also use this opportunity to try and retain customers by giving them a last-minute free offer if they’re willing to stay with you for a little longer. 

3) Your rewards aren’t attractive enough

Loyalty programs work because they offer an equal exchange of value. 

Your customers give you their commitment and loyalty, along with regular purchases.

In return, you offer exclusive discounts, special rewards, and gifts. If your customers feel the rewards they’re getting aren’t worth their loyalty, the balance between you and your clients will break down. 

Think about the kind of rewards your competitors offer. Are your clients more enticed by those reward programs than yours? Have they requested different types of gifts in the past? 

Maybe you could even look into offering a diverse selection of rewards to suit different customers. 

For instance, you could allow customers to sign up to receive free gifts and surprise products or give them the option to convert their points into money they can claim back from future purchases. A diversified rewards program keeps customers happier for longer. 

Consider running regular polls or surveys where you can ask your customers what they most want to get in return for their loyalty. 

4) You’re not incentivising renewal

Many of the most valuable rewards and loyalty programs are built on a subscription or membership strategy. This means that, every so often, you need to convince your clients to renew their membership. 

If you haven’t had much engagement from your loyalty program customers lately, a quick renewal incentive could be a great way to get them back on track. 

Incentives could be something as simple as a double points week for anyone who renews on time or a physical free gift in your customer’s next order. 

If you have a VIP plan in place where customers need to pay for a subscription to get the best free features, it might be worth giving them a discount if they agree to renew for an annual membership instead of a monthly one. 

Pay attention to which kinds of renewals are most likely to keep your customers coming back for more by checking your retention levels following different strategies. 

You might be surprised to discover what customers really want from you. 

Keep Customers Coming Back

Loyalty programs are an excellent way to turn your customers into dedicated advocates for your brand and boost your word-of-mouth advertising strategy. 

However, these campaigns only work when you know how to keep clients engaged and subscribed.

If your loyalty program is suffering due to one of the issues above, now could be the perfect time to refresh and optimize your campaign. 

Remember, though loyalty programs can be challenging to master at first, they deliver incredible benefits in the form of happier clients, greater referrals, and more long-term profit. 

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