Disadvantages of Customer Loyalty Programs

Source: (macxdvd.com, n.d.)

We have discussed about the advantages of the customers but like everything it also has its disadvantages. Here is the list of the disadvantages of the loyalty programmes:

·   One thing with these programmes is that these programmes are being offered by everyone. The company you love will be using those and the competitors of the company would also be using these programmes. This has become like a necessity. A company needs to have a loyalty programme to have a loyal customer base.

Source: (redbubble.net, n.d.)

·   It is a necessity these days but it can’t be patented by any company. Any company can copy the programme of some other company by making some small modifications to it.

Source: (Moneygossips.com, n.d.)

· If you start up a new company and are providing the highest possible services but don’t have a loyalty programme whereas your competitor does. The products made by your company are of the highest quality and are on par or better than the product of your competitor. The customer will prefer the product of your rivals just because of the loyalty programme.

Source: (decidingfactor.us, 2013)

·  Other con of a loyalty program is that it is usually outsourced by the company. It means it is managed by some third- party, who keeps the personal information of the clients of the company. Those third parties can track a client’s activities anytime, like where the client shopped recently and many more.

               Source: (mysecuritysign.com, 2013)

·  The third parties who runs the loyalty programme sometimes share the private information of the client for surveys or other campaigns. In the world of internet, cybercrime is also very common. The hackers can take advantage of your personal information and the consequences can go very bad.

I hope you all enjoyed reading the post. Share and comment down for more questions and to give feedbacks

Source: (Disadvanatages of customer loyalty, 2012)

References

(n.d.). Retrieved from macxdvd.com: http://www.macxdvd.com/mac-dvd-video-converter-how-to/article-image/disadvantages.jpg

(n.d.). Retrieved from redbubble.net: http://ih1.redbubble.net/image.23218630.8712/sticker,375x360.u2.png

(n.d.). Retrieved from Moneygossips.com: http://i0.wp.com/www.moneygossips.com/wp-content/uploads/2015/01/copying-from-the-web.jpg

(2013). Retrieved from decidingfactor.us: http://decidingfactor.us/wp-content/uploads/2013/10/TDF_Flat-Logo_FinalArt-01.png

(2013, February). Retrieved from mysecuritysign.com: http://www.mysecuritysign.com/blog/wp-content/uploads/2013/02/You-Are-Under-Surveillance-Sign-K-7664.gif

Disadvanatages of customer loyalty. (2012, February). Retrieved from gtaggar.com: http://gtaggar.blogspot.ca/2012/02/disadvantages-of-customer-loyalty.html