The Showdown by Denise Wymore
Are your rewards out of reach?
One of the biggest mistakes people make when designing a reward program, is making the reward not worth the effort. Or teasing me with stuff, only to discover I would have to spend $100 an hour for 5 years to get that flat screen television - it begs the question Who does that? Who are they targeting?
The answer: no one. Some of these programs are just jumping on the loyalty band wagon hoping that if they build it - they will come.
Case in point. Dunkin' Donuts announced a new reward program. The DD card must be registered online. It's only valid at participating outlets (I put in three different zip codes that I know have stores and none of them were playing yet) and the perks were, well, lame. For example - if you spend between $25.00 and $49.99 a MONTH at participating DD stores AND remember to present your card they will MAIL you a coupon for a free medium coffee and donut. If you go over $50 per month you have your choice of the free coffee and donut OR a coupon for $4.00 off (which will also be mailed). Reading the fine print - you do not get both - you must choose. I can only imagine there's a form involved.
Now is a good time to review your loyalty program to make sure that:
- It is free of all deception (fine print) and does not involve a chart listing things like "If it's a full moon and a Tuesday you have a chance at 1/4% off of a new loan (VISAs, used car and signature loans excluded).
- An MSR can explain it without using a cheat sheet.
- The reward is worth the effort. Put yourself in the member's place when reading your rules. Would you care about the reward? Is it fairly easy to get?
- You thank them for their business when redeeming rewards.
- You constantly update them on the balance of their reward program.
I'm gonna go get my free pastry at Starbucks now. I guess I just have to "show up" before 10am.