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Monday
Oct302006

Top 10 reasons why loyalty programs don't work.

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Medspas consultants will often promote loyalty programs as a way to reward your best clients and build their loyalty to the practice. But loyalty programs are often not all they're cracked up to be.

10 reasons why  loyalty programs won't work in your medical practice?

  1. Loyalty programs are based on discounts, which ‘train’ existing patients to expect 'sales' and wait out your normal prices.
  2. They attract your most loyal patients who would happily pay a premium.
  3. They confuse patients and staff and create customer service problems.
  4. they discourage new patients by making them feel punished or excluded.
  5. they encourage competitors to retaliate with me-too programs.
  6. they damage your perceived image by making you a 'discount' store.
  7. they reduce profit margins from your best patients.
  8. they reduce your ability to serve patients at the highest levels.
Ok, there were only eight. But the point is, patient loyalty can’t be programmed. As soon as patients begin to feel ‘stalked,’ they choose ‘fight’ or ‘flight.’ They either figure out how to game the system, or else they seek care elsewhere.

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