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Customer Reward Programs

How to Reward your Customers

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Did you know that the concept of customer rewards systems is not entirely new? While it seems like customer rewards programs have increased over the past decade, you will be surprised to learn that as far back as 1896, there was such a thing as a loyalty program. This is long before we had frequent flier clubs and redeemable points. The Sperry and Hutchinson Green Stamps program was launched in 1896 in the U.S and by the mid 1960s about 80% of American households collected stamps and took them to the 800 redemption centers. Today, competition when it comes to rewarding customers is fierce and consumers have countless options in almost every sector from healthcare to retail sector. So, how can you stand out from the competition and set a place for your organization in this vast world of customer rewards systems? Well show you below.
Simple Ways of Rewarding Your Customers
  1. Identify your valued customer
    This may seem obvious since all businesses assume that they know who their loyal customers are. However, the customer who spends most of his time demanding much and not really buying much may be costing your business money. You need to know who your real customers are and by analyzing your database, you will be able to have such insight. It is also important to understand that businesses that are selective with their rewards end up losing clients especially when other clients feel less valued. Have rewards for all but do not forget to give more value to your high-value customer.
  2. The more rewards the better
     Its human nature to be swayed by numbers and of course more reward options is more attractive than having only one redeemable avenue. According to NeuroMarketingScience offering triple points such as 100 points per purchase is more effective and it increases customer participation. The more points you offer per purchase, the more people will be inclined to participate in rewards programs and this amounts more sales for you. These points dont necessarily have to amount to something highly valuable but they are perceived to be valuable. The large number appeals to the subconscious.
  3. Be creative with the rewards
    Believe or not, your customers are not just interested in getting free items. Unique rewards garner attention and people actually prefer them to the boring rewards such as a free cup of coffee when you buy your fifth cup or a coupon. A good example of a creative and exciting reward is the 30 seconds to seize as much as you can for 500 points, which was offered by convenience store, FoBoGro located in Washington, D.C. There also was a company that gave customers a chance to go out on a date with the co-founder of the company for 250 points. While unorthodox, these unique rewards are appealing and engaging. They end up creating loyalty since they engage with the clientele emotionally.
Understand that humans naturally want to be loyal. However, its difficult to understand exactly why they will be loyal and it could be because you tapped into their subconscious or emotions. Rewarding your customers can help foster loyalty.

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