Monday, June 16, 2008
A rewards program
Or does it?
My experiences with three different rewards programs, each with well-respected organizations, has been abysmal. Here's a recent experience.
For months I had never received statements showing what I'd earned. Then I received a statement showing I had zero points even though I'd made purchases. When I questioned why my rewards points didn't show, I was provided a gift card to replace the "expired" rewards points. When I tried to use the gift card online, it didn't work. When I called customer service, she said the gift card wasn't showing on the system. I cancelled the order and placed the order with a competitor.
With the other companies, I couldn't get their online system to apply my reward points to the order. In one instance I didn't receive any indication that the points hadn't been applied, then found an invoice waiting for me when I went to pick up the order.
A rewards program can be a wonderful way to say "I love you" to your customers, but it is fraught with pitfalls. You are creating expectations. If those expectation aren't met, you risk having your customer go to your competitor as I did.
Even if your peformance is exemplary, your customers' memory of the "details" of your program isn't. Reminding them of those details doesn't remove the disappointment they experience. Even when they acknowledge their mistake, they're likely to think "This is too complicated; it isn't worth the effort."
What's the solution? Make the reward immediate. Many reward programs are designed to have rewards points applied to future purchases. The goal is to generate repeat business. Yet, reward points don't dictate my frequency of need. I don't use inks, toners and paper more quickly or stay at hotels more often just because I have reward points.
Racking up reward points when I don't know when I'll have a chance to use them doesn't excite me. Getting an immediate reward for my business does. It also creates a favorable memory that lasts. My repeat business is assured because I recall the joy of having been appreciated at the time I made the purchase.
It's counter-intuitive, but immediate rewards are more powerful and less risky than those that can only be applied to future purchases.
Please post a comment sharing examples of rewards programs that you've found to be effective. If there are topics you'd like me to address, email me at dale@furtwengler.com.
Or does it?
My experiences with three different rewards programs, each with well-respected organizations, has been abysmal. Here's a recent experience.
For months I had never received statements showing what I'd earned. Then I received a statement showing I had zero points even though I'd made purchases. When I questioned why my rewards points didn't show, I was provided a gift card to replace the "expired" rewards points. When I tried to use the gift card online, it didn't work. When I called customer service, she said the gift card wasn't showing on the system. I cancelled the order and placed the order with a competitor.
With the other companies, I couldn't get their online system to apply my reward points to the order. In one instance I didn't receive any indication that the points hadn't been applied, then found an invoice waiting for me when I went to pick up the order.
A rewards program can be a wonderful way to say "I love you" to your customers, but it is fraught with pitfalls. You are creating expectations. If those expectation aren't met, you risk having your customer go to your competitor as I did.
Even if your peformance is exemplary, your customers' memory of the "details" of your program isn't. Reminding them of those details doesn't remove the disappointment they experience. Even when they acknowledge their mistake, they're likely to think "This is too complicated; it isn't worth the effort."
What's the solution? Make the reward immediate. Many reward programs are designed to have rewards points applied to future purchases. The goal is to generate repeat business. Yet, reward points don't dictate my frequency of need. I don't use inks, toners and paper more quickly or stay at hotels more often just because I have reward points.
Racking up reward points when I don't know when I'll have a chance to use them doesn't excite me. Getting an immediate reward for my business does. It also creates a favorable memory that lasts. My repeat business is assured because I recall the joy of having been appreciated at the time I made the purchase.
It's counter-intuitive, but immediate rewards are more powerful and less risky than those that can only be applied to future purchases.
Please post a comment sharing examples of rewards programs that you've found to be effective. If there are topics you'd like me to address, email me at dale@furtwengler.com.
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