so you’ve started a customer loyalty program for your small business, and you’ve finally gathered a sizable amount of sign-ups. things are going pretty well when one day, you start to notice that less and less customers are actually using the program. where did it all go wrong? according to this article from entrepreneur, the problem may be your loyalty program…

how to reignite customers’ interest in loyalty programs

via entrepreneur: this article identifies some of the most common problems that customers have with their loyalty programs and the signs of a no-longer-interested customer. one of these problems is receiving promotions and rewards that have little or nothing to do with their lifestyles and spending habits. there’s nothing more frustrating than finding out you’ve received a free burger from a restaurant when you’re actually a vegetarian and have never even bought a burger from said restaurant.

another problem is programs that have unachievable reward tiers (for example, earning one point for every $100 spent and needing five points to move on to the next reward level). setting unrealistic standards is one of the easiest ways to lose customer interest. starting to see less and less of your loyal customers? as with most of life’s crises, early detection is key. there are several indicators of a no-longer-interested customer: decreased spending, shift in buying habits from luxury to necessity products, and less in-store visits. once you’ve identified those customers (what like to call “at-risk customers”), you can begin to re-engage them.

now that you’ve identified your at-risk customers and restructured your loyalty programs, you’re going to need some unique ways to reignite passion for your business…

7 great ways to build customer loyalty

via inc.: sometimes, a great product isn’t enough to keep customers coming back. that’s where the customer experience comes in. creating an amazing customer experience extends beyond simply providing good customer service. it’s about giving your loyal customers a unique and useful perk such as skipping the line or even giving them a behind-the-scenes look at how the product they buy is created (for example, meeting the chef or a factory tour). another method is making good use of your already loyal customers by setting up a customer referral program and giving them the ability to send their friends and family discounts. this way, you can further reward your best customers.

focusing on the human interaction aspect of a business-to-customer relationship is also key to maintaining loyalty. instead of having all your social media channels do the talking, take the time to focus on truly getting to know your customers and using social media as supporting platform to further bolster relationships.

and finally, to finish up this week’s smb roundup, i want to remind you that we can always learn a little something from the businesses around us. like coffee shops. especially coffee shops because we all know that one coffee shop in town with lines always out the door…

what a coffee shop can teach you about finding loyal customers

via fastcompany: every year, americans spend $12 billion on one particular drink: coffee. to satisfy this massive craving, there are 24,000 coffee shops in the country, meaning coffee shop owners face an incredible amount of competition. despite this, coffee shops have done a great job at maintaining customer loyalty through building effective customer loyalty programs. what can we learn from these coffee shops?

first, it’s important to remember that you need to earn loyalty. a customer’s loyalty is not guaranteed the first time they walk in the door. second, show your customers that you know them (an important contributor to earning loyalty). put the data you gather on your customers to good use – identify your most loyal customers and reward them for their business (fivestars can help you do this!). better yet, create a dynamic loyalty program tailored to your customers and their purchasing habits. lastly, you might consider using a mobile payments and loyalty program. in 2013, starbucks earned $1 billion in revenue from smartphone transactions in stores. as smartphones have now become a common sight, a mobile loyalty/payment program gives people an opportunity to interact with your business without the hassle of carrying a card.

using technology and data in smart ways can help you bring customers back over and over again – without needing to serve a single cup of coffee!