5 Ways to Build an Effective Rewards Program

Favorites, Featured Jul 05, 2011 1 Comment

5 Ways to Build an Effective Rewards Program

Reward programs are one of the most effective forms of promotions since they offer direct discounts to your customers and help build loyalty.

Using rewards programs can target your customers’ unique buying habits, which cannot be achieved by using generic coupons. This gives your customers a greater personalized experience, which will give your company a great advantage over your competitors.

The only tricky part is winning customers over to your rewards program, which is simple if you have a solid strategy ready to go. Don’t have a strategy ready to go? No worries, it’ simple to draw one up, just follow the tips below.

  • Choose Your Approach. Reward programs are available in many types. Some revolve around referrals to new customers, some revolve around the amount of money spent on products and some deal with long term customers. If your business sells products that are used regularly, a rewards program that relies on the number or size of transactions is a good fit for you. If your business relies on one use services, a program that revolves around referrals should be used.
  • Target certain customers. Rewards programs should be geared towards certain shoppers. Typically you want to target your top customers as research shows that about half of your sales come from these customers. Don’t limit your rewards program to only one target group, but offer it to all your customers. Remember that you always want to attract new customers to your business.
  • Reward goals within reach. One of the most important tips is to make sure that your rewards program has goals within reach. Customers will drop out of a program if they feel that the goal is out of reach.
  • What programs do your competitors offer. . Look to your competitors to see what programs are working in your business sector to get an idea of what to offer. Never offer the same program, always make your program original.
  • Communicate with your customers. Communicate your rewards program to your customers using a variety of sources. This will enable all of your customers to hear about your program without you worrying about which is the best way to spread the word.

Setup your rewards program strategy using these simple tips and immediately begin enhancing your customers shopping experience. Your customers will buy more and enjoy a more personalized shopping experience.

Content based on smartblogs.com Article 5 Steps to Building A Successful Rewards Program

One Response to “5 Ways to Build an Effective Rewards Program”

  1. Reply Customers for Life: How to Increase Long-Term Demand | Grand Incentives Blog says:

    [...] ability to spend incentive money effectively in order to minimize the cost or maximize the return directly contributes to a company’s bottom [...]

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