Lagging Customer Loyalty – Who’s Really to Blame?

Payments Leader

Posted on November 19, 2013

When it comes to your loyalty program, never take time to assume your end-consumers are aware, as more often than not, that isn’t the case. There are many reasons as to why consumers may not always understand their various loyalty programs. For starters, there are all types and mixes in various shapes and sizes. With the average consumer being enrolled in a number of customer loyalty programs, it’s no wonder there is confusion and lagging engagement based on that element alone.

But it’s not really the consumer’s fault – it’s the client’s. If the client and support staff don’t fully understand the loyalty program features and benefits (or any offered product and service for that matter), then don’t blame your consumer. You really shouldn’t blame your provider either, as long as you are being equipped with the tools and knowledge to be successful and get that ROI.

All types of companies, large and small, public and private all face similar challenges when it comes to selling into the B2C market. Not enough time, money or resources to really optimize product performance results. Well…that will always be the case…even robots have limitations! And though there are many contributing factors that come into play with optimization, there are some fairly simple ways to help clients become better at not only understanding their own loyalty programs but better at promoting it.

Take Your Loyalty Program to the “Net”

Time, money and resource constraints for all clients – check! So let’s just look at one cost-effective way clients can better understand and increase awareness on their offered customer loyalty program despite the aforementioned constraints. Although we all want to go mobile, the best way to still communicate (at this point in time) is through the Internet, even if accessing it through a mobile device. So use that infrastructure and maximize that landscape to allow for more content to be viewed with fewer clicks and with a better user interface. (Being mobile responsive isn’t a bad idea either!). I’m no web expert, but most sites I view are either too bland or way too much.

Although I can’t tell you necessarily how to best leverage one of your lower cost, most effective existing advertising channels, I can share with you results from a recent study we conducted on our Top 300 financial institutions after assessing the content, clicks, etc. in regards to learning about their offered customer rewards program.
Key Findings:

  • 16% (47 out of the 300) had no loyalty information at all (no link, nothing)
  • 1.27 clicks – average number of mouse clicks it takes to land on a customer loyalty-related page
  • Utilization by Web page types:
    • Contact Information: 10%
    • Homepage: 28%
    • Program Information (e.g. features, benefits, rules): 54%
    • Link: 75%
    • Logo: 22%
    • Graphics: 13%
  • The Top 50 clients outperformed the total sample group in overall consumer engagement, who also had the most content with the fewer number of clicks

Other Loyalty Program Awareness Channels

So, as you can see, there is no surprise that the more content one has on a product offering that is easy to view, the better the overall results. But you already knew that – so are you one of the masses that don’t communicate enough about your product offerings? And though this blog just focuses on the website, don’t forget about your other channels, and most importantly, your internal champions (staff).

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Payments Leader

Payments Leader from FIS provides insights on credit, loyalty, fraud and emerging payments strategies through blog posts from our industry experienced authors.