A loyalty or rewards program can be a powerful tool for a retail store or restaurant. Customers will feel known and valued, and the prospect of saving money keeps them coming back. But what happens when a loyalty program is no longer a cost-effective solution for a business? Making a change could anger and alienate devoted customers. To minimize those negative impacts, we’re sharing a few tips for transitioning to a new rewards program.

Give Advance Notice
Long before you actually make the change, let customers know that it’s coming. This allows them to redeem existing rewards and learn the details of the new program. Post about the new program to social media, include it in digital and physical marketing materials, create in-store signage and instruct employees to tell customers as they shop and check out. Solicit feedback and have conversations with customers who are upset – make sure they feel heard.
Be Flexible
Regardless of how much notice customers have, some will still be unhappy. Find creative ways to show them that they are valued, whether through additional rewards in the new program, coupon codes, special offers, or something unique to them. Empower all employees to offer these additional incentives.
Remain Positive
Focus on the benefits of the new program in all communications. Create fun and engaging ways to earn rewards during the transition – and award points liberally, if possible.
A point of sale system can make the transition to a new loyalty or rewards program much simpler – with less impact on the customer. Contact Retail Tech to learn how a POS system could benefit your business.
Retail Tech carries a wide variety of new and refurbished point of sale hardware and equipment. We offer installation and staging, retail POS system repairs, and more. If you need help choosing a hybrid POS solution, contact our POS systems specialists for help finding the perfect point of sale solution for your retail store, restaurant or other small business.
(This is a repost of a blog post from April 2018 that was updated in August 2020.)