Debunking the Myths About Customer Loyalty Programs

With the growing demand, affordability, and accessibility of eCommerce loyalty programs, myths related to them are also burgeoning. These myths could keep you from launching your own eCommerce loyalty program or leveraging it if you have already placed one. So, here we are debunking all the myths swirling around to steer clear your doubts about reward programs.

Loyalty Programs are Expensive

We agree that the rewards and points you offer will come with an associated cost. But let’s go one step further and think about return on investment (ROI). Members of your loyalty program who redeem points shop 2.5 times more than non-members. So, you earn more than invested.

Loyalty Programs are Complicated

A loyalty program will be as complex as you make them. You can start small with giving customers points for purchases, sign up, and other actions. Once you taste success, you can expand the rewards you offer and begin experimenting with tiers and referrals.

Customers Get Annoyed with Textual Promotions

Staying in touch with customers through texts is one of the biggest benefits of loyalty program. 70% of customers like receiving notifications about discounts, rewards, and other promotional texts. These texts prompt them to buy things they have been looking for, but ain’t purchasing due to their huge price. However, these texts can annoy and turn them off if sent frequently.

You Don’t Have Enough Customers to Begin a Loyalty Program

Since a loyalty program helps you acquire more customers, you don’t need a huge customer base to launch one. As soon as your current customers earn points for purchasing something from your brand, they will have a reason the return to your online store. They can even spread a word about your reward program, which will help you acquire new customers without any cost. You can also give referral points to customers for sharing your brand with their kith and kins.

Measuring Success is Hard

It is obvious that an e-commerce loyalty program will achieve you huge success. There are many proven metrics like redemption rate, active engagement rate and customer participation rate to measure the effectiveness of your loyalty program and determine how your customers are responding to your campaign.

Final Words

Hope we have deciphered most of your misconceptions related to loyalty programs. If you have other concerns about launching your own reward program, feel free to get in touch with their experts of our customer loyalty program solution.