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Photo: Merchant Maverick
Loyalty programs can be an attractive proposition for customers. The opportunity to earn points in return for prizes is a familiar concept, and brands are based on the power of such programs to inspire repeated business.
The attractiveness of loyalty programs is almost timeless – a survey reports that 86% of consumers in all age groups said they had joined a loyalty program to collect points for rewards .
However, the same survey also showed that 75% of consumers said they actively participate in three or less loyalty programs. Therefore, it is essential that brands make their programs stand out from the competition. Unfortunately, not all succeed, because the sphere is afflicted by problems, which not all brands have the power to face.
So, what are these problems? Here, we highlight some of them.
Make the reward threshold too high
Starbucks Rewards is one of the most popular loyalty programs in the United States; however, he attracted his customers in 2016 when he changed the reward criteria.
Loyal customers who buy low-cost simple coffee have had to spend more to get the same rewards. Starbucks' popularity scores were temporarily bumped because of customers who tweeted their dissatisfaction with the change.
Offering unsatisfactory rewards or irrelevant promotions
Microsoft has also managed to annoy its XBox Live user base by simply giving a birthday present. It seems ungrateful?
Well, in the first place, Xbox Live users already paid $ 50 each year to access the platform, which competing companies offer for free. He therefore considers that the incentive program designed to mitigate the payment stroke, Xbox Rewards, gave a birthday gift to customers who had an equivalent value of $ 0.25. The customers were justifiably irritated.
Expiring points
Points are zero if they expire before customers can redeem them. A survey showed that almost a third of consumers said that this was their biggest concern with loyalty programs.
Low involvement of members
One of the reasons why the points expire is that customers can be overwhelmed by loyalty programs. Having to track multiple recordings, physical cards, smartphone apps, logins and passwords cause fatigue.
If customers are not involved in the program and its benefits, they are not justified by themselves.
Making it too difficult to redeem points
The airlines have been indicted for this heinous crime of loyalty.
Time magazine has previously reported that the niche role of "premium booking consultant" now exists only because airlines make it so difficult to redeem frequent flyer miles.
If a client has been loyal enough to accumulate enough points for a reward, then surely it is counterintuitive to make the process of claiming him full of obstacles.
The solution? Blockchain loyalty platforms
Loyalty platforms based on Blockchain are now starting to emerge and are preparing some innovative solutions to these problems. One example is Resto, a blockchain loyalty program aimed at the restaurant industry.
Rest uses the concept of digital tokens as loyalty points. Any restaurant or catering operator can register and allow customers to accumulate a percentage of each check as a Rest token. Customers can download a & # 39; smartphone app to manage their token balances and spend them at any participating restaurant.
A platform like Resto offers customers a single point of access for loyalty points accumulated by multiple outlets. This helps increase engagement, as customers can spend their tokens at any point of sale, not just where they have collected points. Tailored promotions are more relevant to customers than generic and bland offers.
Tokens have no expiration date and can be converted into cash if a customer wishes to exchange them with a cryptocurrency exchange. The tokens are redeemable without any set threshold value and without obstacles or difficulties in spending or exchanging their tokens.
A more consumer-focused future for loyalty programs
Brands have an interest in ensuring that loyalty programs are well done. Blockchain is showing huge potential in loyalty programs, solving existing problems for the benefit of customers.
Given that customers tend to vote with their feet, it is likely that the future of loyalty programs will be found on the blockchain.
