What are some examples of failed loyalty programs?

What are some examples of failed loyalty programs?

Some notable examples include the Starbucks Rewards program, which faced backlash for its complicated structure, and the J.C. Penney program that alienated customers by removing discounts.

What went wrong with the Starbucks Rewards program?

Starbucks changed its rewards structure, making it harder for customers to earn free items, which frustrated loyal customers and led to a decline in participation.

How did J.C. Penney's loyalty program fail?

J.C. Penney eliminated discounts in favor of a loyalty program, which confused customers who were used to sales and promotions, resulting in a loss of sales.

What can companies learn from these failures?

Companies should prioritize customer feedback, ensure simplicity in their programs, and maintain the value that customers expect.

Are there any successful loyalty programs to compare?

Yes, programs like Amazon Prime and Sephora's Beauty Insider have thrived by offering clear benefits and engaging experiences.