When times are tough, many companies concentrate on increasing sales from their best customers. It’s a great tactic, but only when executed properly.
Loyalty programs have increased 60% in the last 4 years, but a recent study by payment system provider ACI Worldwide shows that most fall short of the mark. Here are a few astonishing findings from the study, as reported in Chain Store Age:
• While three-fourths of Americans belong to at least one loyalty program, 85% say they belong to programs they’ve never heard from
• 81% of those who belong to a loyalty program don’t know what it entitles them to
• 44% reported having had a negative experience from a loyalty program
Not communicating clearly with loyalty club members is bad enough. Providing a negative experience is inexcusable. Don’t make the mistake of thinking that once you set up a loyalty program, the work is done. Do it right, or not at all.