Customer loyalty programs are great in theory. They can incite repeat purchases and build brand affinity by rewarding continued patronage. If executed poorly, however, these programs achieve the exact opposite of their intended outcome, actually eroding a customer’s attachment to the brand.
I travel often, so I’ve got a lot of experience with loyalty programs for airlines and hotels. One thing that I’ve noticed far too often is that when, as a customer, you actually try to redeem your reward points, you’re treated like a second-class citizen.
If you’re a frequent flyer and you’ve tried to book flights in award class, you probably know what I’m talking about. More than likely, you’ve had a harder time finding available flights or been bumped for another paying passenger or gotten slammed with stipulations. Airline employees have no problem telling you that since you’re flying with points instead of real money, you’re not considered a priority.
That’s a great way to make your loyal customers feel loved.
Or, here’s another example: I recently vacationed in Hawaii and used points earned through a hotel’s “Gold Passport” program to book a room for four nights. Yet, when we got there, it took half a day to get us in a room and we were unable to access some of the basic amenities made available to paying guests.
If a company can’t get it right with their loyalty program, they’d be better off ditching the entire concept and putting more resources into creating a memorable customer experience. That’s far more likely to keep me coming back than reward points that are treated like a hindrance when redeemed.
Today’s post comes from Bridgz employee Andrew Galarneault based on his customer experiences.
Tagged: customer loyalty
