Why have shoppers lost faith in points based retail loyalty programs and what can be done about it?

For years, Australian shoppers have swiped their cards, collecting points with the promise of future discounts and rewards. But lately, that enthusiasm seems to be waning. In news stories and online forums, shoppers are talking down points based programs, often airing frustration at the lack of value and complexities using the programs.

Many retail programs have become stagnant. Plenty are same same. Here are some of the biggest culprits behind the decline of points-based loyalty:

• Too Many Programs, Not Enough Value: We’re bombarded with loyalty cards. Keeping track of them all is a chore, and if a program doesn’t offer significant rewards quickly, it gets relegated to the bottom of the wallet.
• Points that Disappear into the Abyss: Earning enough points for a decent reward can feel like an eternity. Opaque point structures and constantly changing redemption values leave shoppers feeling frustrated and undervalued.
• Discounts, Not Loyalty: Many programs feel like glorified discount cards. Sure, a discount at checkout is nice, but it doesn’t foster a true connection with the brand.

The big factor against points based loyalty programs is the confusion as to what a point is worth. In one shop, a point may be worth $1 when you choose to spend it while in another shop it may be worth a fraction of that. Points are not the same anywhere.

A table alternative is discount vouchers from Tower Systems. This approach to loyalty uses currency, real currency – something everyone understands.

Here’s why discount vouchers are the loyalty program upgrade worth considering:

• Immediate Gratification: Discount vouchers deliver instant value at checkout, keeping customers happy and coming back for more.
• Targeted and Relevant: Unlike generic points, vouchers can be tailored to specific customer segments or purchase behaviours.
• Flexibility is Your Friend: With Tower Systems, you have complete control over your voucher program.
• Design vouchers with your branding, set the discount percentage or amount, and choose which products or categories they apply to.
• Simple is Best: Unlike points that can be confusing to track and redeem, vouchers are delightfully straightforward.

Discount vouchers are a powerful tool to build customer loyalty. We have retailers in a range of channels using them with success today to encourage shoppers to purchase more per visit and to return sooner and more often to purchase again.

Discount vouchers offer instant value, cater to individual preferences, and provide valuable insights into customer behaviour. Tower Systems empowers you to create strategic voucher programs that drive sales, boost engagement, and leave the outdated points system in the dust.