The primary aim of a rewards program is to encourage customers to come do business with you again thus increasing your sales. It enables you to track customers by identifying their spending habits, behaviors and trends so that you can be able to come up with a winning business strategy. A good program is beneficial to both the customer and your business.
Here are qualities of a good rewards program and how you can start such a program:
It encourages your customers to participate in the program. If the program does not provide any benefits to the customers, then no one will participate in them. Your program should target the customers group that is most beneficial to your business. The rewards you offer should be valuable enough to encourage these target customers to join the program and participating by coming back more often.
It aims to appreciate and thank your customers. Your customers should see the rewards you give as an expression of gratitude to them for driving your business. Offer rewards that add value to the customers. If you give rewards that offer too little in terms of value, it will look bad and insulting. Give rewards that show your customers that you value them and their business.
It encourages customers to divulge useful information about them. It should aim to gather more than their email address. The rewards you give out should encourage your customers to identify themselves every time they make a purchase. A program that promises a big reward at the end ensures customers come back to your business repeatedly. They also leave their personal information so you can be able to contact them for their reward.
A good rewards program encourages customers to change their behavior. The rewards should be tailored such that they encourage your customers to make more purchase and also to come back more often. If they used to buy one item per week, the reward should entice them enough such that they start buying 2 items 3 times a week. You can easily do this by offering a discount when a certain target amount of purchases is achieved by a customer in a week or a month. This will encourage customers to increase their purchases and visits in order to qualify for the reward.
A good rewards program aims to retain old existing customers. Rewards that are valued enough will encourage repeat customers. Customers are less likely to go to your competitor when you have a reward enticing enough for them to aspire to get it. This is how a points reward system works. If a customer has accumulated the points over a long period and is about to get a reward, he cannot defect.
It aims to attract new customers. A reward that is highly valued by customers will encourage new customers to come to your business. An example of this is a signing up discount for new customers. However be careful to avoid giving new customers rewards that appear more valuable than the ones you give to your old existing customers. This will make your customers go to a competitor business with such a reward system once they get your reward.
It differentiates your business from that of your competitor. Choose rewards that set you apart from the rest. Customers don't want just another rewards program. Ask your customers by means of a questionnaire what they want and give rewards that they value. Offer rewards that can be redeemed easily and that won't require the customers to spend a lot of their money while trying to claim.
Although setting up a Rewards Program may be expensive and time consuming at the beginning, its benefits far exceed any upfront fees.
Here are qualities of a good rewards program and how you can start such a program:
It encourages your customers to participate in the program. If the program does not provide any benefits to the customers, then no one will participate in them. Your program should target the customers group that is most beneficial to your business. The rewards you offer should be valuable enough to encourage these target customers to join the program and participating by coming back more often.
It aims to appreciate and thank your customers. Your customers should see the rewards you give as an expression of gratitude to them for driving your business. Offer rewards that add value to the customers. If you give rewards that offer too little in terms of value, it will look bad and insulting. Give rewards that show your customers that you value them and their business.
It encourages customers to divulge useful information about them. It should aim to gather more than their email address. The rewards you give out should encourage your customers to identify themselves every time they make a purchase. A program that promises a big reward at the end ensures customers come back to your business repeatedly. They also leave their personal information so you can be able to contact them for their reward.
A good rewards program encourages customers to change their behavior. The rewards should be tailored such that they encourage your customers to make more purchase and also to come back more often. If they used to buy one item per week, the reward should entice them enough such that they start buying 2 items 3 times a week. You can easily do this by offering a discount when a certain target amount of purchases is achieved by a customer in a week or a month. This will encourage customers to increase their purchases and visits in order to qualify for the reward.
A good rewards program aims to retain old existing customers. Rewards that are valued enough will encourage repeat customers. Customers are less likely to go to your competitor when you have a reward enticing enough for them to aspire to get it. This is how a points reward system works. If a customer has accumulated the points over a long period and is about to get a reward, he cannot defect.
It aims to attract new customers. A reward that is highly valued by customers will encourage new customers to come to your business. An example of this is a signing up discount for new customers. However be careful to avoid giving new customers rewards that appear more valuable than the ones you give to your old existing customers. This will make your customers go to a competitor business with such a reward system once they get your reward.
It differentiates your business from that of your competitor. Choose rewards that set you apart from the rest. Customers don't want just another rewards program. Ask your customers by means of a questionnaire what they want and give rewards that they value. Offer rewards that can be redeemed easily and that won't require the customers to spend a lot of their money while trying to claim.
Although setting up a Rewards Program may be expensive and time consuming at the beginning, its benefits far exceed any upfront fees.