Loyalty programmes worth the effort

Hi there,

I get asked about loyalty programmes a lot, usually phrased as "should we add points?" And my honest answer is often "not yet". Bolting a points widget onto a shop that hasn't sorted its basics just adds a cost and a distraction.

Points aren't a strategy

A pile of points is not loyalty. Loyalty is someone choosing you again when they had other options. A scheme only helps if it nudges a real change in behaviour.

Before you sign up for anything, ask what you actually want people to do:

1. Buy a little sooner than they otherwise would
2. Buy a little more each time
3. Come back for a second and third order, not just the first

If your scheme doesn't obviously drive one of those, it's decoration.

Reward the behaviour, not the transaction

The schemes I like reward the things you want more of, not just spending. A review. A referral. A second purchase within ninety days. That's where the value hides.

The best loyalty programme in the world can't rescue a product people don't want to buy twice. Fix the reason they'd come back first.

Keep the rules simple enough to explain in one sentence. If a customer needs a spreadsheet to work out their balance, you've lost them. Confusion is not engagement.

And watch the margin. A discount dressed up as a reward is still a discount, and giving it to people who'd have bought anyway is just quietly lowering your prices.

If you're weighing up whether a programme is right for your brand or just a shiny expense, start with a FREE call and we'll pressure-test the idea against your numbers.