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5 Reasons Your Retailer Loyalty Program Isn't Working

09-05-2023 05:26:PM  | By Gurnoor Saini

Examples of Retailer Loyalty Programs That Are Getting it Right

Retailer loyalty programs have become a popular marketing tool in recent years, but not all of them are successful. Despite the best intentions, some big brands and their retailer loyalty programs fail.

In this blog post, we'll discuss five common reasons why loyalty programs may not be working for your business. We'll also showcase some successful retailer loyalty programs examples that are doing things differently in the Indian Industry.

Lack of Personalization

An issue that has been observed to impact the success of retailer loyalty programs significantly is the absence of personalization. In an era of unparalleled access to retailer/customer data, customers now demand a personalized experience that resonates with their unique preferences and needs. Loyalty programs that lack this critical element run the risk of coming across as bland, unimaginative, and unengaging to the modern retailer and consumer.

Personalized Rewards: The Power of Data

Baltra, a popular Indian brand that specializes in home appliances, has implemented a loyalty program that emphasizes personalization. Their retailer loyalty program is real-time gamification based and encourages retailers/distributors/customers to earn points on their purchases that can be redeemed for real-time rewards and discounts.

Their retailer loyalty program uses customer data, such as purchase history and product preferences, to provide tailored made, personalized rewards and offers that align with their interests. The secret of this brand’s retail program is QR codes.

Complicated Redemption Process

The complexity of a redemption process can present a significant obstacle to the success of retailer loyalty programs. When your brands’ retailers/distributors/customers are required to walk through a complex process to redeem their rewards, it can lead to a frustrating experience that ultimately undermines the program's effectiveness. To maximize the value of a loyalty program, brands must prioritize creating a streamlined and straightforward redemption process that is intuitive and easy to use.

Streamlined Redemption: Keep It Simple

What sets Bhutan Tuff's loyalty program apart is its simplicity. Influencers can easily redeem their rewards through a user-friendly online portal, making the process quick and hassle-free. 

By prioritizing simplicity, Bhutan Tuff, one of the leading plywood brands in India, has been able to build a thriving loyalty program that enhances influencer/customer satisfaction, driving long-term growth and brand engagement via its successful retailer loyalty program.

Lack of Communication

The success of a loyalty program largely depends on effective communication with supply chain partners. In today’s times, customers look for quick and fruitful communications. 

If your retailers and other supply chain partners are unable to feel related, communicate, and link to your brand, your loyalty program will not give you positive results.

Effective Communication: The Key to Loyalty

Take the example of Lux; it is QR code-based communication, and a digital dashboard enables users to register themselves in the blink of an eye. They could add points, contact 24/7 customer support, and use FOMO leaderboards.


Unswitched retailer loyalty and up to 60%* influence of repeat purchases.

Lack of Differentiation

A loyalty program that fails to differentiate itself from competitors may struggle to attract and retain customers. To stand out, loyalty programs need to offer unique rewards or experiences that customers can't get elsewhere or from your competitors.

Stand Out from the Competition: Differentiate Your Program

The KEI Cables and its electrician loyalty program are a great example of differentiation: in addition to earning points for purchases, their supply chain partners, including retailers/distributors/customers, also get access to instant digitalized reward redemption, single scan QR codes to access product details, and a QR code enabled protection for every unit against fake circulation. Sounds interesting?


What’s the USP of your brand’s retailer loyalty program?

Lack of Flexibility

Finally, a lack of flexibility can be a major barrier to the success of a loyalty program. Customers want to feel in control of their rewards and be able to redeem them in a way that suits their needs. That's why programs that offer flexible and easy-to-use redemption options, such as cashback, discount, extended warranty, etc., are often more successful. 

Flexibility is Key: Adapting to Customer Needs

Retailer Loyalty Program Examples.

Here are some brands, like Pooja Ragenee, Aqua Plumbings, and Crompton, who are using QR code-based retailer loyalty programs that have successfully granted them with minimization of up to 45% churn rates. What sets their retailer programs on the road to success is their flexibility to let their supply chain partners redeem their rewards on a collection of points in real-time.

The only task they have to do is scan the QR code from their mobile, and there it is- with a single click, they can either add new points or redeem the collected points and win digital prizes anytime.

Now, what do you think are the reasons or USPs of the retailer loyalty programs that these brands offer?

QR codes!!

Instant Rewards

Personalized Digital Prizes

Gamification-based loyalty program

Easy to Scan QR codes.

A successful loyalty program requires customization, clarity, adequate communication, uniqueness, and scalability. By addressing these issues, retailers can create programs that attract and retain loyal customers.

Looking to improve your loyalty program? 

Genefied is India’s most trusted QR code services platform that serves unique retailer loyalty solutions to each of the brands like Baltra, Aquini, Lux, and more from various industries. If you also want to take advantage of the success rate of a QR code-based retailer loyalty program, contact us for a free DEMO.


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