Loyalty Programs: Expectations vs. Reality

Life is full of surprises. It feels that nothing is as it seems. We welcomed 2020 with open arms and we were blessed with a pandemic. Today, we’re here to reveal some expectations vs. reality about loyalty programs. We don’t mean to burst any bubbles here but let us set a few things straight...


Loyalty programs are set up & then run without much effort

You might think that for the most part, loyalty programs require a thought out strategic set up but once they are configured, don’t require many changes. In reality, loyalty schemes, just as any other part of your marketing activities, are always evolving. In order to run a truly successful loyalty program, behavioural data is necessary. Make sure your systems are set up in a way that allows you to easily analyse customer behaviour. Look for outstanding patterns in your customers’ behaviour and trial new types of rewards. Collect data and learn from them. Think about your rewards the same way you do about digital advertising. Perform A/B tests, gather insights and run data-driven campaigns. We promise you will see results.

Did you know however that most loyalty programs fail if they don’t have the right tools to monitor and make changes quickly? Consider employing a trusted and reliable loyalty platform that ties all the ends together. Check out what our Loyalty Engine can do here.


It’s all about collecting points

It's all about collecting points? Au contraire, dear friend. Your loyalty program should be a part of your wider integrated brand activation strategy. After all, your most loyal customers are your best and easiest audience since they are already listening to you. This makes your campaign ROI sing and your execs praise you. Think of your loyal customers as your brand’s friends. Invest as much into these relationships as you do in your real personal friendships. (But maybe don’t tell them about all your deepest secrets.) After all, 80% of your revenue generally comes from only 20% of your most loyal customers. That’s worth investing in!

Think about where you can provide value, even if it’s in seemingly small details. Being understanding to your customers’ needs is the most rewarding and profitable way forward. Your loyalty program should reward customers’ activities that both you and your customer profit from. Keep your program engaging and interactive - give gamification a try or consider real-time experiences. The rewarding world is your oyster!

Check out these 3 top loyalty gamification examples!


Loyalty only works in B2C

Although we tend to think of retailers first when talking about loyalty, it has its place in all industries. That is including B2B. Take it from us, White Label Loyalty has been helping B2B businesses thrive on loyalty across industries. From food and drinks brands connecting with retailers, to plumbing equipment providers. You can’t make that up! Depending on the nature of your business, developing a loyalty program with your B2B clients might be even more important and profitable than in the B2C world. The mechanism works the same - find what adds value to your customer experience and start there. Don’t forget to also monitor your competitors’ strategies. Benchmarking can lead you to unique added benefits you could be providing. If you’re interested in finding out how a shiny new loyalty program could work for your business, get in touch with our loyalty specialists!


Loyalty programs are expensive to build and run

If built correctly, loyalty programs should pay for themselves in the long run. Using a mobile app to send push notifications can help drive engagement and repeat purchases. It also provides a better customer experience, helping to form a stronger customer relationship. Furthermore, studies have shown over and over again that retaining strategies are five to twenty five times more cost effective than acquisition strategies. So think about which activities you want to put your spend into. 


Where to next? Why not get inspired by the immense success of Emma’s Diary’s new loyalty driven app!

Want to know more about loyalty programs? Get our free comprehensive guide to loyalty programs!

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Kristyna Efferoth

Kristyna Efferoth

Marketing Manager

Kristyna is our Marketing Manager. She helps White Label Loyalty reach the right businesses in need of a loyalty program and helps our clients' programs reach their full potential. She loves sharing her varied experience in marketing and loyalty by writing helpful resources on the blog from time to time for all loyalty novices and aficionados alike.

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Loyalty Programs
Customer Loyalty
Customer Retention
Mobile Tech