Loyalty Programs from a Customer’s Perspective
Rohit Singh VP of Customer Engagement Schedule Free Consultation
  • In our series of blogs on loyalty programs, we have covered various aspects of managing effective campaigns for actual and positive results. We have discussed many facets of loyalty program software from the business point of view. Now, this is an attempt to understand loyalty programs from a customer’s perspective.

    From a business owner or marketer’s point of view, customer expectations are essential for your insight tracking feature. It helps in understanding typical customer behavior in real-time. Commissioning this technology is vital for creating your loyalty programs management system with more purpose and taking customer expectations into accountability. 

    However, ever wondered how customers decide – which program to join and which one to leave. But, before that, let’s quickly go through some data regarding loyalty programs software. Since 2013, US companies are spending over $1.2 billion on loyalty marketing campaigns. 

    Besides, 1.8 billion US citizens are active members in one or more loyalty programs. The most exciting fact is US households subscribe to up to 14 different programs, which clarifies that you still got a perfect chance with this instrument.

    So, when customers are willing to join companies and their loyalty platforms, what are those criteria, based on which they decide the merit of such campaigns.

    Criteria that Customers Use to Select Loyalty Programs

    Customers these days are very selective while purchasing products, and therefore, they judge their companies based on loyalty campaigns they get in the bargain. 

    Here, NextBee unfolds the list of factors that are crucial for customers. On a lighter note, we have added customer’s possible reactions to the lack of these features.

    Simple and Easy Point System:

    Many customers quit companies due to the complicated point system they have to deal with in the loyalty programs. It is very natural for them, as, when they find your program’s point structure challenging to understand, they tend to purchase their products and vanish.

    The best part is you can’t hold them responsible for their action as negligence is from your end. The too rigid or complicated point system is just another cause to err customers, and for that, they can leave you at any moment. 

    Customer’s Reaction: Why should I get dragged into this illogical point system, when I have much more comfortable and better options?

    Tier Based Reward Structure: 

    In other criteria that worry customers are the reward structure. Most customers prefer to participate in a tiered reward structure, as such a program offers instant and long-term benefits. In a tiered reward structure, customers can win bigger and better rewards by qualifying to higher levels of the hierarchy tree. One time POS promotional discounts are not inferior by any means. 

    However, when you get qualified for a premium customer group and enjoy lifetime discounts, you will go for the last hundred out of a hundred times as a customer.

    Customer’s Reaction: Why should I go for one-time rewards when there are options to get cumulative benefits over a long period?

    Relevant Rewards:

    It is another criterion about rewards offered in loyalty program management systems. Companies do carry out the tracking of consumer behavior to understand user expectations from their brand and create relevant rewards, which adds value to customer’s purchases. Similarly, customers also watch out for bonuses pertinent to them and offer good value for their purchases.

    Customer’s Reaction: What would I do with these rewards?

    Quality Reward Fulfillment: 

    Reward fulfillment is when customers can claim their rewards, and they receive it. Companies provide various types of bonuses through this systematic and automated technique. Customers who receive rewards would like to get it delivered to them as quickly as possible. In physical items, customers always expect their bonuses to be in perfect shape at the delivery point.

    Customer’s Reaction: Why my rewards are not delivered in time, and at times, in bad shape?

    Gamification Activities:

    These days gamification is one of the most talked-about concepts in loyalty programs. Many top brands have used gamification to an excellent effect to boost their customer engagement activities. People like loyalty programs, which are funny, interactive, and offer a feel-good factor. According to reports, direct and straightforward gamification activities are most preferred by customers.

    Customer’s Reaction: Why should I stick to a boring loyalty platform without gamification features?

    Net Promoter Score:

    Net Promoter Score or NPS is determined on a scale of 10. This index determines how likely your customers would refer your brand to their friends and family. From the customer’s point of view, they want to check NPS as it will help them to find the popularity of any product among customers. Better NPS means your customers are willing to share your product or brand.

    Customer’s Reaction: What NPS is ideal for determining the popularity of any given brand?

    Prompt Customer Service:

    The success of a business lies in the quality of customer service ethics they adopt. Time, money, and efforts of customers are as important as your business. Therefore when they see negligence from companies offering proper pre or post-sales services, they tend to move to competitors. 

    Likewise, people tend to move to companies that offer prompt and courteous customer service.

    Customer’s Reaction: When my queries will be answered? How long I have to wait for the customer support response?

    Easy-to-use Widgets:

    Considering from a customer’s point of view, rarely any of your users would like the idea of using intricate widgets for sharing or referral activities. Customers want to get involved in loyalty programs management campaigns, which have devices with one-click features. Such easy-to-use features increase the rate of brand promotion by a significant margin.

    Customer’s Reaction: Why this referral sharing widget is a complex one? I have seen many easier ones.

    Data Safety:

    According to your customers, they don’t like their data being shared on online platforms. Similarly, companies also do not want to reveal their useful customer data in front of competitors. Therefore, both customers and companies watch out for loyalty programs that guarantee the user’s data safety. 

    Customer’s Reaction: How safe is my data? Will other companies have access to it?

    It is a fair checklist of features that customers can use while choosing their loyalty programs. These features also help them out in finding better companies for their products and services.

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