Important elements of every successful rewards program

Important elements of every successful rewards program

What is a rewards program?

Retaining a customer is much easier than acquiring a new one. It is also more cost effective. And if you have a rewards program as a part of your customer retention program, you are in for bonus points. Having a rewards program not only helps retain your regular customers but it is also makes way for new customers through referrals and word of mouth.

The secret to a cutting-edge reward program is to make it such that it meets the needs of the customers. One of the biggest reasons for having a rewards program is that it will help retain your existing customers, who will further bring in more clients. This ensures more customers at minimum cost or investment.

Why is it important?

Loyal customers are more important than one-time purchase customers. They know your product well, trust your product, and do not need to be advertised to. They are usually more receptive to your communication and will be more interested in buying or trying your product than anyone else. They are also more likely to endorse your product to others – without you having to spend a penny! Then why would you not want to harp on to this group of customers that adds value to your brand with their loyalty.

Having said that, what all do you need to make your rewards program successful and effective?

Here are a few elements that make your rewards program successful:

  • Custom rewards

The first thing a person looks for in a reward program is ‘What is in it for me’? One program will not suit all. You have to recognize the needs and requirements of your customers and tailor-make offers that meet their needs. Customers are more likely to respond to a brand that understands them and gives them offers that are well suited to their needs.

  • Make your reward program tiered

Instead of having a loyalty program that is stagnant at one tier, try to add levels to the program. Give customers points for signing up. Set levels. Increase the rewards at every stage. Increasing reward points at every stage will induce more purchases, which in turn helps increase loyalty.

  • Make an exclusive/aspirational club

Apart from having a loyalty program that offers people great benefits, you can also look at making an exclusive/VIP group that comes at a certain fee. Give them additional benefits like pre-launch offers or trials, discounts, and even free samples. Regular customers who enjoy your products wouldn’t have a problem spending a little extra to be the first purchasers of your product.

  • Give them options

Instead of having a single program, you can also look at introducing multiple reward programs. These could differ in terms of offerings, products, area, frequency of purchase, etc. While one could be an exclusive program that comes at a price and gives you VIP benefits, the other could be free to join and has relatively lesser benefits. The switch from one program to another should be easy. This will not only help you get more people to sign-up for your program but will also help you track the purchase behaviour and interests of your customer.

  • Good service

What good is a loyalty program if the services offered aren’t good enough for the customer? A customer will always appreciate and return to a brand more if the customer service is good. Make sure your employees are helpful and welcoming. While you might a brilliant reward program in place, if it isn’t easily comprehendible or accessible, you will eventually lose out on customers.

While there is no ground rule to ensure the success of a reward program, you can keep measuring its progress by regularly monitoring how it is faring. Keep re-modelling if need be. By employing different permutations and combinations you are likely to succeed.

nth Rewards is potentially the largest multi-brand loyalty platform designed by NPCI, to help brands engage & retain customers. You too can become a partner and ensure great visibility for your brand. 

5 reasons why loyalty programs are important for your business

5 reasons why loyalty programs are important for your business

Customer loyalty programs have gained a lot of prominence over the last few years. A customer loyalty program is a program run by a company that offers great benefits to the customers in the form of discounts, freebies, offers, promotions, and free products and samples among others. It is designed to ensure that the customer sticks to the brand – maintaining brand loyalty and keeps coming back frequently. Not only this, a good customer loyalty program can also lead to great word of mouth publicity, which in turn can help you attract more customers without having to do anything.

What is the purpose of a customer loyalty program?

Apart from ensuring that your customers stick by your brand loyally, a customer loyalty program can also help you understand the demographics and psychographics of your customer very well. It can not only help you boost your business but will also help you strengthen your relationship with your customers.

What should you keep in mind when designing a customer loyalty program?

When designing a customer loyalty program, the most important things to keep in mind are – what is in it for the customer? What is the gratification that the end consumer will receive? Is it attractive enough? Will it help retain the customer? Is it of interest to the customer? Does it satisfy his needs?

Here are a few reasons why you should have a customer loyalty program for your business

  • Customer Retention: The most important objective of having a customer loyalty program is to retain customers for their loyalty and repeat purchase behavior. And the best way to retain a customer or ensure his complete loyalty is by offering him products/offers that might interest him. You also end up saving a lot of money trying to get new customers since your existing customers often act as brand endorsers. Word of mouth publicity usually helps garner more customers since it comes from a verified and trustworthy source. People are more likely to trust friends/people who are existing customers of a brand than they would trust an ad.

    Thus, a great customer loyalty program is of great help to not only retain your existing customers but to also get new customers on-board.
  • Better and personalized communication: With a well-designed customer loyalty program you can directly communicate with your customers, which is a great way to create recall and stay on top of the mind of your customers. Since you have the liberty to communicate with your customers directly, it makes it easier and quicker to communicate with your customers about offers, benefits, and any other information that you would want to share with them. You can also personalize emails by matching them with the date of purchase or on the basis of the kind of purchase the customer makes. This helps strengthen the bond with your customer since you are only providing them information and offers that might be of interest and relevance to them.
  • Great way to know your customer: An efficient customer loyalty program will help you not only communicate with your customer but will also help you delve deeper into their likes and dislikes. This in turn, can be useful to understand your customer better, create effective communication with them, give them offers and deals that will suit their tastes and needs.
  • Lets the customer know you care: When you know the needs of your customers, you can customize offers and deals for them, thus making them feel that the brand thinks about them. This not only makes the customer feel that you care about them but is also effective in retaining a customer.
  • Helps improve sales: The more options you offer, the more people will want to buy your products. With a good customer loyalty program, you can offer exclusive discounts, merchandise, freebies, to members. Once a customer gets used to your products, not only will you have his loyalty for life, but you also have an endorser who will promote your product to others.

    nth Rewards is potentially the largest multi-brand loyalty platform designed by NPCI, to help brands engage & retain customers. You too can become a partner and ensure great visibility for your brand.