Loyalty programs fail due to poor planning and unclear goals, impacting customer satisfaction and loyalty.
Loyalty programs are popular tools companies use to keep customers happy, but they can have problems. A group looked at the pitfalls companies face when planning and running these programs. They talked to 161 people who helped with loyalty programs to learn more. They found that things like setting clear goals, choosing the right rewards, and involving experienced staff are important for loyalty program success. Despite the benefits offered, many programs didn't meet customers' needs or goals because they were not well planned. The researchers suggest ways to fix these issues and make loyalty programs work better for everyone.