The First Step to a Successful Loyalty Program

I like to think that many people can relate when I say that I have about 10 loyalty cards sitting in my wallet for a plethora of different places. Either that, or I’m a crazy card hoarder. But the interesting part is that of these 10 or so cards, I am only actually loyal to one or two of them.

One of the big things companies don’t seem to be taking into consideration is that consumers are more likely to take advantage of its loyalty program if they can get through the registration process with little to no effort. Programs like Loblaws’ PC Plus require each user to go online to create their account in order to be able to redeem any of their points. Understandably, this is part of the development of the customer database, but its pushing away a large amount of its consumers.

Being a Loblaws cashier myself, it is my job to push and promote the PC Plus cards to customers. There are many cases when a customer has gotten a card, then handed it back to me after hearing what is required of them. Not only is there the one time registration, but the customer has to make a weekly commitment to download their offers in order to receive a majority of their points. Which to anybody my age is no big deal, but to the 45+ market, it is a major inconvenience.

I think this is one situation where the KISS principle should definitely apply. Giving consumers a simpler option allows for a larger group of truly loyal customers who you can count on to return to your business. Sure, you may need to work harder to grow that database, but when considering that 80% of a company’s business comes from 20% of its customers, it is important to focus on current customers before new ones.

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