Why SMBs Don’t Join Loyalty Programs

Loyalty programs are great for SMB retention, but only if your customers join them. A recent Bredin survey of 500 U.S.SMB principals reveals why some SMBs hesitate to participate.

The perceived low value of rewards is the top reason very small businesses (VSBs, with fewer than 20 employees) and midsized businesses (MBs, with 100-500 employees) don’t participate. For small businesses (SBs, with 20 to 99 employees), data privacy concerns are the leading impediment. A lack of program awareness is the second reason businesses of all sizes cite for not signing up.

After a lack of program awareness, irrelevant rewards are the biggest reason VSBs and MBs don’t enroll in a loyalty program. For SBs, it’s time constraints.

Why SMBs Don’t Participate in Loyalty Programs

More than half of respondents say that data privacy concerns stop them from signing up. Larger SMBs are much more concerned with data privacy. 61% of SBs and 64% of MBs stated that data concerns are an impediment to joining a loyalty program, versus 44% of VSBs.

Is Program Participation Discouraged by Data Concerns?

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