7 Lethal Blunders In Execution Of Customer Loyalty Programs


Ashni Sharma

Senior editor

Parul Saxena

Chief editor

Last updated: April 13, 2021

The mobile app landscape is on a consistent track of changes. Earlier the mobile apps defined the stature of the business but it has now become a common place. The users have a range of options when it comes to choosing the app for a particular purpose. So how does a business ensure that the users are loyal to the app? Mobile Customer loyalty programs are the answer to this questions.

Nearly 57% of the mobile apps execute mobile customer loyalty programs but a very few of them actually get expected returns. According to ClickFox 2012 Brand Loyalty Survey, 48% of consumers are of a view that the best time to ensure mobile customer loyalty is the time of their first interaction with the app. There are many facets to brand loyalty and users expect the businesses to meet their needs and offer an unmatched service. If they experience the dearth of good service, they are bound to drift to another brand.

Looking for Customer Loyalty Software? Check out SoftwareSuggest’s list of the best customer loyalty software solutions.

Sometimes, the companies do offer mobile customer loyalty programs but commit some mistakes that cost them dearly. Loyalty is based on a range of factors that include collecting actionable information about the customer’s preferences and prioritizing them.

Read on to explore these common mistakes and how they can be avoided

7 Lethal Blunders In Execution Of Customer-Loyalty Programs


1. Not focusing on customer retention

Retention of the customers is as important as their acquisition. Surveys suggest that more than 80% of the customers on an average do not return to the app after first few usage. Although the app marketers put in a lot of efforts to acquire the customers, they fail miserably when it comes to retaining them. Before the need arises to bring a customer back to the app, re-engagement of the customers should be attempted. The customer loyalty program that does not focus on long-lasting relation with customers and is rather keen on acquiring new ones to feel the void created by parting customers, is a failed one.

There are many ways to re-engage the customers and the most prominent ones are remarketing ads and deep-linking the mobile apps. When a customer is presented an ad of the app that he or she has stopped using or uninstalled and is promised some breathtaking features, the chances of re-engagement get higher. In case of app deep-linking, the content of the app can be made searchable and linkable from search engines or social media platforms.   

2. Not paying attention to complaints

It is in fact a fortunate thing for an app if the consumer raises a complaint. This means that you have got a chance to improve your app and make it more user-friendly. Sprout Social reports that almost 80% of the customers’ complaints are not responded to and the 20% that get a response keep the users waiting for an average of 12 hours for it. It is a no-brainer that if you do not respond to the complaint and get the issues resolved for your customers, they are bound to look for better alternatives. When it comes to bad app reviews, they also need to be responded. Engaging in a dialog with your users is a proven way of earning the customers’ loyalty.

3. Waiting for the customers to complain

This is the most common mistake that ruins the user experience and thus hampers the user’s loyalty towards the app. Rather than waiting for the customers to raise an issue, the app marketers must ask the users to report them any issue that they face. If you keep waiting for the issue to arrive, the damage would have already been done. A user may not bother about reporting the issue when he or she has the option to uninstall the app and look for a better alternative.

Instead of waiting, you must be proactive in your attempts to collect the feedback and solicit any kind of issues that the users are experiencing. This way, it will be easier to track the issue and nip it in the bud. According to the Apptentive data, app retention increases by almost 60% if the users are able to interact with the app makers and voice their concerns.

4. Inconsistency in implementation of customer loyalty programs

Customer loyalty may be handled by a dedicated team but it is the role of the entire business to be friendly towards the consumers and echo the concept of customer-first. It starts with the way the app developers build functionalities around the customers and  also create human-centered designs. After the product is ready, it is the job of the executive team to present the app in the best way possible and also interact with the customers who post negative or positive comments.

If every facet of the business understands its role towards customer loyalty, it would become quite easy to push forward the goal to ensure forging a long-lasting relationship with the customers. When the executives are customer-friendly, it would send a message across bottom lines to be the same while dealing with the customers.  

Also, you can deploy customer loyalty software to manage the loyalty programs for the customers in a better way.

5. Treating all customers as one unit

While ensuring that the customers remain loyal to the brand, you cannot assume all customers to be treated in the same way. Every user communicates in a different manner and expects something different from the app. If your app has more 4 stars rating and reviews are either from the users who love or hate the app, you must not infer that all your users think in a similar fashion.

If you really wish to enhance the customer loyalty, you need to go beyond the metrics of app ratings and reviews and engage them on a more human ground. This can be done by sending customized surveys to the apps and recording the result to create a better app road map. After you gather these insights, you can easily analyze them and utilize them to tailor your loyalty program to suit the needs of the users in a precise manner.

6. Plan to include the loyalty program at a later stage

As already stated earlier, the loyalty building measures need to be implemented from the onset of app development. If you procrastinate the inclusion of loyalty program with the app, you may lose out on the customers. Rather than having a bottom down approach of product development, the approach should be centered around the customers. A loyalty program needs to be unsegmented and every team should focus on it right from the beginning.

Loyalty needs to be included in every framework of the app development process and not at the end of the process.

7. Not choosing the right time to push loyalty initiatives

Push notifications are quite helpful in presenting tailor-made offers and also the information about other aspects of the app usage. However, if these notifications are not well-timed or out of context, they are pretty annoying for the users. For instance, if you wish to apprise the user of a sale that is scheduled for Friday morning, a notification on Tuesday is bound to irritate the users. Furthermore, if you see that the response rate has declined, the number of push notifications should also be reduced accordingly. The users also need to be segmented and according to the purchasing behavior and preferences, you should change the pattern of notifications.

A Wrap Up

Mobile customer loyalty program is something that can be a deciding factor for a user to choose a particular app. Such programs not only help in brand establishment and boosting credibility but also aid reengagement of the customers if needed. Loyalty cannot be encouraged in a day. It requires the teams to be focused on this metric in pursuit of a better user experience. The common mistakes committed while executing mobile customer loyalty programs listed here will make sure that you do not repeat them.

The blog has been penned by Ashni Sharma, an application developer working with AppsChopper. With a penchant for writing interesting and highly informative blogs, she has been contributing to various magazines and forums.

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