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The problem with loyalty programs and coupons

WRITTEN BY 20. June 2018January 20th, 2022No Comments

Many consumers are into loyalty programs. Unfortunately, only a few retailers fully exploit the programs’ full potential. The big issue is to make the customers aware of the benefits that lie in their loyalty. Have a look at how you can improve your loyalty program.

The consumers don’t know how many loyalty points they have earned

Despite the fact that consumers are into loyalty programs, they are unaware of their number of loyalty points and active coupons. 53 % of the questioned American consumers are unsure of how many points they have collected from their favorite loyalty program. This is one of the findings from a research conducted by 3Cinteractive.

Many retailers who offer coupons and loyalty points do not exploit the full potential. If a business succeeds in communicating the number of points and coupons to their customers, 4 out of 10 consumers will visit the store more often. Additionally, 5 out of 10 consumers would even consider visiting the store more often.

The hassle of accessing points and rewards

According to a survey performed by Codebroker, 54% of  American consumers think it is frustrating, when loyalty programs cannot be accessed from a smartphone or if they have to download an app. This often results in expired loyalty points and coupons, as the member does not use them in time.

One of the main reasons why consumers are unaware of their collected loyalty points is that the information is hard to find. The big question is, how the members get information about their current balance. Do they need to log in online? Download an app? Is it written on the receipt? Have they received an email? Should they have their loyalty card scanned in the store? The user experience becomes confusing and frustrating.

Integrate loyalty cards and coupons in the wallet

To make sure your customers are loyal to your loyalty program, the user experience should be your main focus. Information on points and coupons should be available, points be easy to convert to amounts, and lastly, members should be reminded of their current balance. In the research by Codebroker, 37% agreed that they wish to receive a text message with their point balance.

Are you unsure on how this would work in practice? Watch the video below and see how a loyalty member gets notifications with points and coupons directly from his smartphone wallet.

Watch how a book store utilizes wallet for loyalty programs

With loyalty cards available on the members’ smartphone wallets, they can easily access their information and points. After buying an item or service, the members will receive a notification with updated points or newly added coupons.

The wallet solution is now an integrated part of the newest version of NaviPartner’s POS system, NP Retail.

Kasper Højdal

Want to learn more?

Want to know more on how to integrate your loyalty program in a wallet solution? Contact us today for a noncommital talk with one of our consultants. We might be helpful in transforming your business.