Day#220: Loyalty programmes

Day#220: Loyalty programmes

Hey everyone! I was driving around the other day and noticed that I had this loyalty card for a restaurant I often frequent just sitting in my car. It made me think about Loyalty programmes in general and the way in which they help and possibly hinder the goals of the company, so yes today we will be discussing Loyalty Programmes.

I think for starters companies need to clearly define what the goal is for their loyalty programme, yes this is where business often comes in and demands more sales or marketing will come in and want data collection. However there are such different Loyalty programmes on the market, the obvious and most common mechanism is the spend and earn X points. Points are then often represented in larger amounts compare to Rands, this is to make the customer feel like they are earning a fair amount, when in actual fact it is a ratio for every R100 spent you get 100 points and then in turn 100 points equals R1.00 so to speak. Anyway companies need to ensure that the mechanism they use for enticing people to become Loyalty members is exciting and appropriate enough for their clientele. This is where user research will come in handy, understanding what the users value and what they would prefer would really help with generating the rewards programme. I think Loyalty programmes simply became the next “We must have a website!” and then “We must have an App!” and now possibly from in between those two already it is “We must have a rewards programme!” The hard truth is that customers are not as naive as businesses often like to think they are and a lot of these rewards programmes are very gimmicky in my opinion.

I will say without any shame that I do have a few Loyalty cards with some of the big retailers in the food and produce industry, and don’t regret it I have enjoyed using them when I was in a pinch financially. I must add that I absolutely love when businesses team up, for a while I never spent my ebucks not finding anything I really wanted however this year I used my Ebucks through Take alot and thoroughly enjoyed the experience. FNB also allows you to group your ebucks so if you have someone willing to give you theirs it’s also an option, I really like the control that the platform gives me to be able to spend in the way I choose and not be redirected to other sales sites that are related to the actual brand in any way. I do think that mapping out the user journeys of Loyalty card holders would really help some of the big retailers though, because I often find black holes of despair when trying to redeem my points at most of the outlets. All in all Loyalty Programmes are probably way too overrated and companies really do need to invest more time into understanding users, analyzing in store pain points and possibly also using purchases to influence future purchases etc. I would personally love to see more tailor made specials. Looking forward to doing a video on this perhaps in the future, happy researching until next time Uxers!

Bye for now!

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