For many years companies have offered loyalty rewards programs to give incentives to their customers for their continued business. Many of them have invested millions of dollars into programs that offer points for various purchases that can be redeemed for more merchandise. The time has come for smaller businesses to be able to take advantage of similar programs. If you are looking to grow your business by providing a loyalty rewards program, consider some of these necessary elements.
Balance Rewards and Business
You will need to find a happy balance between the rewards you are offering your customers and a profit margin for your business. Whatever incentive you offer your customers with your loyalty rewards program need to be attainable. A free cup of coffee for thousands of points when each coffee purchase gains them two points won’t go very far. This can even work against you as it deters customers. On the other hand, you don’t want to be giving too much away. If a large percentage of your customer base takes advantage of your loyalty rewards program, it can amount to a significant loss.
Fun and Creativity
You certainly don’t want to offer anything strange or unrelated to your business, but it is good to be fun. A smoothie company has offered a free stuffed animal to customers who earned enough points. The stuffed animal became a hit and even acted as an advertising agent. A culture of sorts was created and the stuffed animals became popular in the local community. This loyalty reward ended up serving several purposes in the marketing of the company.
Another way to add creativity is to create a game. Customers with the most points in a given time win a substantial prize. Find an avenue to post the leading customers to add competition. Make it fun and visually appealing as much as possible. Loyalty rewards should be exciting. The goal of your loyalty rewards program is to build rapport between your business and your customers.
Promotion and Partnerships
After establishing the metrics for your loyalty rewards program, and the structure for redemption, train your team to promote. They should mention the program to customers during customer service encounters and all transactions. It is also beneficial to send out a newsletter and promote the loyalty rewards program on social media. If possible, and mutually beneficial, partner with another business. Each company should receive equal benefit. The advantage here is to acquire new customers from the customer base of the other business. For more ideas on starting a loyalty rewards program for your business, contact GoalGetters Inc today!
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