So, you’ve launched a new loyalty program for your business. Congratulations! But something doesn’t quite add up.
Why aren’t your customers signing up for the program? Shouldn’t it entice them? Don’t you have loyal customers?
We won’t lie—sometimes loyalty programs don’t work as much as you expect them to. To maintain a loyalty program requires a lot of resources, time, energy, and people. But don’t worry, you’re not the only one facing the struggle.
We’re here to share strategies to boost sign-ups for your loyalty program and make it irresistible to your customers. We’ll explore some of the effective tactics to attract more members and turn them into loyal fans. Let’s dive in and get those sign-ups rolling!
Why are Customers Not Signing Up for a Loyalty Program?
When you think about it, what good is a loyalty program if your customers are just going to ignore it?
Let’s discuss a few reasons why customers might be hesitant to sign up for a loyalty program.
Complicated Process
Ever tried signing up for something and felt like you were solving a Rubik’s Cube? A whopping 70% of customers shy away from loyalty programs because the process feels inconvenient and time-consuming.
If the program requires someone to fill out forms, create accounts, or navigate through endless terms and conditions feel like a chore, most people will bail fast.
The Program is Unrewarding
Realistically, nobody wants to jump through hoops just for a free keychain. 48% of customers believe that they should start earning rewards from the first purchase. If customers feel like they have to spend a fortune or wait forever for something meaningful, they’ll lose interest.
Customers are Unaware of the Benefits
Imagine walking into a store, and the staff hands you a magical card—but you have no idea what it does. That’s what loyalty programs can feel like when businesses fail to communicate their perks.
If customers don’t know what they’re signing up for, they won’t bother.
The Program Isn’t Personalized
Cookie-cutters don’t cut it anymore. Customers expect businesses to understand their needs, preferences, and certain quirks. If a program feels generic, it won’t click. Trust is fragile nowadays.
Changing the Rules Too Often
No one likes playing a game where the rules keep changing—including your customers!
Imagine this: one day, they need 10 points for a free cupcake, and the next week it’s suddenly 20 points. It’s like they’re being tricked instead of rewarded—talk about a loyalty program betrayal!
Customers are Overwhelmed
Did you know that 90% of companies offer their customers some kind of loyalty scheme? With so many programs flooding the market, it’s no wonder customers often feel overwhelmed. Every café, restaurant, grocery store, and even gym seems to have its own loyalty program, all promising rewards that often feel too similar to stand out.
Signing up feels like more hassle than it’s worth, especially when the benefits don’t seem unique. Plus, managing multiple memberships, apps, and cards can be daunting, leading many to opt out entirely.
So, how do we tackle these issues? We want our loyalty program to stand out, and actually engage customers in the process.
How do we do that? Read on to learn more.
Ways to Encourage Loyalty Program Sign-Ups
So, with those common problems of loyalty programs, how to make your loyalty program stand out among others, and encourage customer sign-ups? With a few smart strategies, you can make signing up so easy and enticing that they barely think twice about it. Let’s break it down:
Simplify the Process
The number one reason people skip loyalty programs? The sign-up process feels like a chore. So, let’s make it as effortless as possible. Stick to the basics: name, email, maybe a phone number or birthdate if needed. Customers can always provide more details later when they see the value of the program.
To make things even smoother, offer options like one-click registration through social media or email accounts. Convenience is king!
- Why it Works: The easier the process, the more likely customers are to join. A quick and simple sign-up removes barriers and makes your loyalty program accessible to everyone, no matter how busy they are.
- Real-Life Example: Chick-fil-A’s app-based loyalty program, Chick-fil-A One, allows users to sign up with just a few taps. They can use their email, social media, or existing app login credentials. The process is so quick and straightforward that users barely need to think about it.
- Actionable Tip: Try integrating a QR code sign-up process. Customers can scan the code at checkout or on a receipt, leading them to a pre-filled form with just a few fields. If resources are limited, you could use a simple clipboard system at your store’s counter—quick and effective!
Offer Rewards Right Away
Nobody likes waiting, especially when they’ve been promised a reward. Let’s make joining your program feel immediately valuable. You can try hooking your customers with a sign up reward, like “Sign up today and get 5% off your next purchase!” is an irresistible hook.
- Why It Works: People love instant gratification. A quick reward makes the decision to join your program an instant choice and can lead to more immediate sales.
- Real-Life Example: H&M offers new members of its loyalty program an instant 10% discount on their first purchase after signing up. This is a powerful method to attract customers.
- Actionable Tip: Try offering something easy but meaningful, like a free snack, a small discount, or bonus loyalty points. Keep it low-cost but high-value to your customers—it’s the thought that counts!
Show off the Perks
Sometimes, customers don’t sign up because they don’t fully understand how amazing your loyalty program benefits are. So, let’s put the perks front and center!
- Why It Works: If the benefits of your program are unclear, customers won’t see the value in joining.
- Real-Life Example: Think of Amazon Prime. Yes, it’s paid, but the perks–free shipping, student membership discounts, free-trial periods–are all clear and powerful.
- Actionable Tip: List out clear benefits on your website and through email–create a user-friendly page showcasing all the customer rewards, benefits, and how easy it is to join. Show them exactly what they will get.
Make it Unique and Engaging
Standing out in a sea of loyalty programs takes creativity and strategic partnerships.
Partner With Other Brands
When your program collaborates with complementary brands, customers see added value.
- Why It Works: 75% of consumers in loyalty programs are more likely to purchase additional products from partnered companies.
- Real-Life Example: Starbucks teamed up with Spotify to make its Starbucks Rewards program even better. Members can earn rewards by listening to special playlists and get access to exclusive music content. It’s a fun way to make coffee more enjoyable—great drinks, great music, and extra perks all in one!
- Actionable Tip: We know you won’t partner with big names right away. So, for starters, look for local partners or smaller-scale brands that align with your audience. For example, if you own a café, you might partner with a nearby bookstore to offer shared rewards, creating a mutually beneficial relationship without requiring a big budget.
Gamification and Challenges
Make your loyalty program more exciting by turning it into a game! Add challenges, milestones, or interactive tasks to keep customers engaged. Gamification lets customers complete fun activities, compete for rewards, and earn points for their efforts.
- Why it Works: Who doesn’t love a bit of competition or the thrill of unlocking a reward? It’s a common method to engage customers. Brands that use gamification in their system see a 47% increase in customer engagement.
- Real-Life Example: Chipotle‘s rewards program offers challenges “Chipotle Race to Rewards” where customers can earn bonus points by completing certain activities or purchases within a set timeframe. This challenge is something you can implement with whichever type of loyalty program you currently use.
- Actionable Tip: It’s okay to start small! Create a simple punch card system with a twist—offer bonus punches for completing a challenge, like trying a new menu item or visiting on specific days.
Make Your Customers Feel Special
When customers feel seen and understood, loyalty becomes a no-brainer. Tailor perks to individual preferences. If a customer is always buying your lattes, a free latte voucher will feel far more relevant than a discount on tea. But remember that making customers feel special isn’t only limited to monetary rewards.
Exclusive Experiential Access
Who doesn’t love feeling special? Offering VIP perks like early access to sales, members-only events, or other premium experiences makes customers feel valued.
- Why It Works: Statistics show that most Millennials and Gen Zs prefer to spend money on experiences rather than products. This is your chance to create unique, memorable opportunities. This way, you’re creating lasting impressions that keep them coming back for more.
- Real-Life Example: Marriott offers exclusive members to enjoy overseas vacations, be included as VIP in MTV Music Awards, or even guarantee a reservation table at top restaurants like Pujol and Girl & the Goat.
- Actionable Tip: Small to medium-sized businesses can offer affordable, exclusive experiences such as early access to a seasonal menu, behind-the-scenes tours, or a “members-only” day with special perks. These small touches can make a big impact without straining your budget.
Embrace Technology Integration
Nowadays, everything is connected. Let customers earn points whether they shop online or in-store. With 70% shoppers using smartphones to make purchases, having a mobile-friendly loyalty program is non-negotiable. A simple app or mobile site can make engagement easy and convenient.
Social media is another powerful tool for your loyalty program promotion strategy—reward customers for social shares, or let them earn points by engaging with your brand online.
- Why It Works: Because technology is integrated into your customers’ daily routine, it can increase their engagement with your brand.
- Real-Life Example: Sephora’s “Beauty Insider” program allows customers to engage with their brand via a mobile app or online web store. The app gives access to customers with beauty recommendations, app-only products, and an early peek to new product launches.
- Actionable Tip: Start with low-cost options like a mobile-friendly rewards page or simple integrations with platforms like Shopify. Use free tools to create a social media engagement campaign, encouraging customers to post, tag, or review your brand for points or discounts.
Community Building
Did you know that 54% of consumers expect brands to take a stand on equality issues? And this number rises to 65% among younger consumers (ages 18-34). This shows a clear demand for brands to get involved in social justice initiatives.
- Why it Works: When you align your loyalty program with a social cause, it taps into customers’ values and gives them a reason to support your brand beyond just discounts. It builds a community where customers feel they are making a difference.
- Real-Life Example: Ben & Jerry’s Flavor Fanatics program goes beyond offering free ice cream cones; it inspires customers to champion social justice causes with special flavors like Save Our Swirled! for climate action and I Dough, I Dough for marriage equality.
- Actionable Tip: You can start by supporting a local cause or a charity program. Offer customers a discount for donating to a cause you support, or set up a program where points can be donated to charity. Create a sense of belonging by featuring customers’ stories or testimonials related to the cause on your social media or website.
So, now you know how to make your loyalty program stand out from the crowd! Keep things consistent, offer real value, and give customers a reason to stay excited, and you’ll be creating a program that feels more like a reward than a hassle. No more confusing rules or cookie-cutter perks—just a fun, easy-to-understand experience that keeps customers coming back for more.
Conclusion
Remember, a loyalty program isn’t just about offering rewards—it’s about building stronger, lasting connections with your customers.
Looking to make your loyalty program more enticing? SimpleLoyalty can help you create an experience customers love. Start today and watch your business thrive!
