/ Advocado

Why your traditional loyalty program is failing

Quick question: How many loyalty cards do you currently have in your wallet right now?


More often than not, you’ll want to redeem your free gift (e.g. Coffee) but you can’t find your loyalty card! Or you might have forgotten to bring it out.

Traditional loyalty programs include paper loyalty cards like stamp cards. There’s always the usual: “5 stamps to redeem a free appetizer! 10 stamps to redeem a free main!” Sure, people are always attracted to freebies! But is it really an effective way to retain your customers?

This is why your traditional loyalty program isn’t working:

1. Identifying customer behaviour

As a business trying to understand their customers, you wouldn’t be able to do so with paper loyalty cards. Of course you’ll know when a customer comes to you with a card filled with stamps, but do you know how often the customer visits?

And if the customer forgets to bring their card, you wouldn’t be able to check their details for them! That’s how you lose your customer’s loyalty slowly. Nowadays, customers want things to be convenient and easy for them! By introducing these hassles for loyalty, they'll be more inclined to shoo away your loyalty program.

2. What brings back your customers?

It’s a given that your customers are attracted to your business because of your products and services. But to effectively make them come back again & again? This is something that many businesses are still unable to grasp.

With sufficient customer analytics from a digitalised loyalty program (Like Advocado), you’ll be able to gain knowledge on which rewards are more highly sought after. This optimisation of rewards leads to customers being more enticed to visit more often. More revenue, yay!

Hey! Click here to read more about how Advocado is able to increase your customer retention AND generate even more revenue!

3. Engaging your customers

So what if your customer has a loyalty card from your business? How do you ensure that they do come back? There’s no way of informing them of new promotions for example. However, by having their details, you’ll be able to effectively disseminate promotional news to your customers!

With Advocado, you’ll be able to engage your customers via the SMS Broadcast function. When 90% of SMS are read within the first 3 minutes, there’s no other way that would enable you to get this result!

4. Effectiveness of strategy

Marketing is all about analytics. How do you know how well your loyalty program is doing without any statistics to tell you? If you don’t know how many customers you have on board your loyalty program, or how many free main dishes you’re giving away every week, it just means that you could be spending unnecessary money!

See how Advocado has helped Yoogane, popular Korean food brand, in their loyalty journey.

Most loyalty programs have a way to track and view the results. Advocado’s dashboard allows businesses to view customer count in their database and various reports of your loyalty initiatives. This can be viewed anywhere, anytime - As long as you have an Internet connection and a device to visit websites.

In conclusion

Building customer loyalty should be the primary focus for any business. What’s not to like about loyal customers spending more, visiting more often and are one source of Word of Mouth referrals?

Say bye-bye to all these cards!

Traditional loyalty programs can only do this much. It is easy and simple to implement, and also inexpensive! BUT, in an age of technology, data will be able to enhance your business and bring it to the higher level if you harness it properly. After all, businesses are in it for the long run! Why not keep up with the times and invest in a good loyalty program?

When you’re ready to hop on the digital loyalty train, simply fill up this form here.

Read related posts here:

Why have a loyalty CRM system?

How to get more customers