{"id":5152,"date":"2019-02-19T13:42:19","date_gmt":"2019-02-19T21:42:19","guid":{"rendered":"https:\/\/vapementors.com\/?p=5152"},"modified":"2019-02-26T21:10:59","modified_gmt":"2019-02-27T05:10:59","slug":"the-5-mistakes-youre-making-with-your-loyalty-program","status":"publish","type":"post","link":"https:\/\/vapementors.com\/the-5-mistakes-youre-making-with-your-loyalty-program\/","title":{"rendered":"The 5 Mistakes You\u2019re Making With Your Loyalty Program"},"content":{"rendered":"

Many vape shops don\u2019t set up their loyalty programs properly.<\/strong><\/p>\n

Furthermore, many shop owners miss out on opportunities to drive important customer behavior with their loyalty rewards points.<\/p>\n

This post will serve as a great resource for vape shop owners that need help with their loyalty program, whether they are just beginning or trying to grow.<\/p>\n

For deeper learning, watch our webinar replay titled \u201cHow To Price Your Vape Shop Rewards Program\u201d here >>><\/a><\/p>\n

1. Awarding One Point For Each $1 Spent<\/h2>\n

Although this seems like the obvious starting point, it\u2019s a common mistake to simply award 1 \u201cpoint\u201d for each dollar spent by your customers.<\/p>\n

The reason is related customer perception.<\/p>\n

When you award 1 point for each dollar it becomes painfully obvious to the individual how much they have spent at your shop. The points become an unofficial reminder of their spending habits. Some customers could suddenly realize how much money they are spending and become ashamed of their spending habits. This may sound counter-intuitive but it\u2019s true.<\/p>\n

Another reason is related to the perceived value of your loyalty rewards.<\/p>\n

It\u2019s recommended to award your customers at a 2% rebate based on customer spending. This means that for every $100 spent they receive $2 in rewards. So, if a customer has 100 points and is awarded a $2 \u201cbonus\u201d they can easily calculate the rebate rate of 2% \u2013 something that may make your rewards program appear less valuable.<\/p>\n

It\u2019s not that you want to trick your customers into a low-value rewards program, it\u2019s that you need to re-think your points system altogether. See point #2 below.<\/p>\n

We recommend awarding points at a 15-1 ratio. In other words, $1 spent is equal to 15 points. Here\u2019s what customer spending would look like in terms of points now:<\/p>\n\n\n\n\n\n\n\n
Spending Level<\/strong><\/td>\nPoints Earned<\/strong><\/td>\n<\/tr>\n
$50<\/td>\n750<\/td>\n<\/tr>\n
$200<\/td>\n3,000<\/td>\n<\/tr>\n
$600<\/td>\n9,000<\/td>\n<\/tr>\n
$1,000<\/td>\n15,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

To learn more about pricing your loyalty program, watch our webinar replay >>><\/a><\/p>\n

2.\u00a0Not Using Points Rewards To Encourage Customer Behavior<\/strong><\/h2>\n

Customer should be able to earn points for way more than just purchasing product.<\/p>\n

In fact, this might be the most under-utilized strategy when it comes to a vape shop rewards program.<\/p>\n

You should come up with alternative ways to award points to your customers that also encourages certain behavior. Here are some examples:<\/p>\n