3 myths that undermine your potential loyalty ROI
Back in 2019, I participated in a study by The Wise Marketer, alongside 33 other industry experts, in which 83% of us cited lack of C-suite backing as a top reason why loyalty programs underperform.
I doubt this figure would be much lower if we re-ran the study today. While there are many excellent business leaders who recognize the loyalty program’s revenue-generating potential, across the industry, there remains some persistent areas of misalignment between the loyalty team, and those who control the purse strings.
To help loyalty teams solve this, we’ve published this one-pager for your C-suite colleagues – tackling 3 widespread but outdated beliefs about loyalty best-practices and ROI, to make it easier to get investment for your initiatives.
Read on for a summary of these three myths about loyalty marketing, or download the one-pager here.
Myth 1: loyalty incentives are ‘expensive’
High-spending customers should certainly be rewarded, but too many rewards are often showered on customers who’d shop your brand frequently anyway. Greater upside lies in the customers who aren’t loyal yet – but who have the potential to be, with the right incentives.
Myth 2: loyalty incentives are ‘expensive’
In fact, the direct costs of points incentives, and of releasing inventory for rewards, are an investment in customer lifetime value (CLV). It is your job to accelerate earning and burning, therefore, since this should translate into greater ROI.
Myth 3: only ‘big’ partnerships with credit cards and travel brands really matter
Practically every customer who can reach a free flight or hotel stay via co-branded credit cards is already doing so. So the growth potential of such partnerships is limited.
Smaller accrual partners, in nearly every spending category, in retail, quick-service restaurants, entertainment, mobility, etc. are needed so that nearly every customer can earn your loyalty currency. This spins the flywheel of accelerated customer engagement, that increases loyalty ROI by improving Customer Lifetime Value (CLV).
Engage your CXOs around loyalty best-practices
Most C-suite professionals have limited time for the loyalty program – but they set the budget, which significantly determines the loyalty team’s ability to contribute to wider business growth.
It’s the ongoing mission of the loyalty team, therefore, to dispel myths that undermine the performance of the program, and align the business around proven ways to optimize loyalty ROI.
About Currency Alliance
Currency Alliance now works with hundreds of brands, both enterprise and SME, as they’ve transitioned to a modern loyalty strategy based on established best practices. Click here to find out more.
