This means that only 13.67% of people redeem their points.

If you're looking to improve your retention rate, 13.67% won't budge.

After implementing loyalty programs on 10 ecommerce brands, I see 3 main reasons for failure.

— Not enough retention to begin with

A loyalty program alone cannot increase retention.

It is a reward mechanism to improve retention.

Reward for being faithful. So they don't go to your competitors.

But this will not create demand for the product.

If your product does not require much retention or there is no repeat purchasing behavior, the loyalty program will not work.

— Launch it too early or make it complex

Most DTC brands launch it too early.

In particular, 6 or 7 figure ecommerce brands don't need a loyalty program.

Maybe a subscription. It may be a membership program, but definitely not a loyalty program.

Another reason is complexity, most brands make it too complex.

There are too many tiles, ways to get points, points to convert, and trading rules.

It's not even worth it for your most loyal customers.

— Not enough promotion

This is the biggest problem.

Hide it under the envelopes. Run it and forget it.

No mention in the welcome flow.
No mention on the home page.
No mention in your regular campaigns.

Sometimes, even employees don't know that their brand offers a loyalty program.

This is the state of most loyalty programs.

For a loyalty program to be successful, it must be at the center of your marketing strategy.

Not an afterthought.

All the famous loyalty programs Sephora, Starbucks and Lego promote it tirelessly.

DM me /"loyalty/" to start working on retaining your customers.

#dtc #ecommerce

I use my PCC (Product, Customer, Communication) framework to maximize the growth and profitability of e-commerce brands.

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