Loyal to a Fault? Tips to Make Your Loyalty Program Shine

5. Programs to avoid. Hlavinka also gave the audience examples of loyalty programs to avoid. Adding these programs to her “Hall of Shame,” she began with what she referred to as “dumpster divers.” A fast-food chain started a loyalty program based on redeemable proof-of-purchase barcodes. These barcodes were stamped on french fry boxes, and when customers had collected enough proofs of purchase, they were given free food. However, because so many customers automatically toss french fry boxes into the garbage without removing proof of purchase stamps, there was a proliferation of “dumpster divers” who fished through the garbage of these restaurants to collect the proof of purchase barcodes. They then redeemed the proofs of purchase for free rewards without having made any prior purchases. Hlavinka said the lesson to be learned from this program is to reward and recognize individual purchase behavior, not moxie.