How many loyalty cards do you have in your wallet? How many did you used to have? Man, there was a time

in place when anybody and everybody had you carry around some sort of loyalty card, punch card, all the

things. But you never had it when you needed it, right? One of the things we get asked here at the

boutique hub is do loyalty programs work? And should I be offering some sort of a loyalty reward program? Well,

before you just jump in, I'm going to tell you why they typically don't work. Now, you can do

them, you can do them right and you can really reward people in a way that keeps people loyal or you

can actually just have a standard loyalty program. What do you think those reasons are that they don't work? Well, you know because you know who you're

loyal to and you know who's tried to buy your loyalty in the past. Number one reason majority

of loyalty programs do not work is because they are discounting everything. They are trying to buy

your loyalty. But reality is, everything's negotiable

and there's always somebody who can do it cheaper. And if you're trying to win my loyalty,

win my trust on price alone, guess what? As soon as somebody outdoes you, I'm gone.

Number two reason why loyalty programs typically

don't work is they're just not exciting enough. They're very easy to copy, right? We see it

happen all the time, the punch cards, all the things. They're just kind of redundant. There's

nothing that exciting about them. So typically, I forget about them. And when I need them, I don't have

them. And guess what happens if I don't have them? I tend to say, oh, man, I don't have that card

with me today. Or I don't remember what my account or my password is for this. So I guess I'm

going to go buy something somewhere else because I'm not treated very BIP if I don't have my loyalty card with me, right?

So that's reason number two.

Number three reason is it's a lot of times complexity.

Complexity keeps people from using a loyal to rewards program.

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