5 Quick Tips on How to Create a Valuable Customer Rewards Program
How many customer reward cards are in your wallet, on your phone or on your keychain right now? Which ones do you actually use? Probably the ones that provide you with the most value. For me, my CVS Pharmacy card is worth using because I get cash rewards and discounts on things I usually buy. My Sephora Beauty Insider card is also worth using to me, as it keeps track of all my purchases and gives me free gifts when I’ve racked up a certain number of points.
In the title, you’ll notice we use the term “customer rewards program” and not “loyalty program.” You see, a reward program is about customers getting rewards for patronizing your business. The more they spend, the more they get. However, a loyalty program is one in which you have a relationship with your customer, and you treat your loyal customers with special rewards.
We’ll share our tips for creating a successful loyalty program in a future blog post, but for now, let’s cover the basics for running a successful customer rewards program!
1.Offer an incentive to join.
It doesn’t have to be something huge. A free product sample, a discount on their purchase that day or a voucher for free lunch the next time they come in should do the trick!
2. Stick with a simple points system.
No need to get fancy – most rewards programs work this way (miles for airlines, points for credit cards). Assign a point value for each dollar spent, and keep track of your customer’s spending that way.
3. Next, add tiers.
What happens when someone reaches 100 points? What about 500? What about 10,000? Set attainable reward tiers so that all of your customers are able to get a treat now and again.
4. Make it fun!
Figure out a way to make a game out of redeeming points. Maybe every third time they shop, they can enter a raffle to win something fun. Or, if they are due for a reward, let them choose a reward at face value, or select a “mystery” reward that could be worth more.
5. Offer VIP promotions.
Exclusivity is attractive. If you offer certain promotions only to reward program members (like special events in-store or free shipping) you’ll be surprised how quickly you attract other members!
The bottom line is, you want your rewards program to stand out and be fun and easy for your customers to be a part of. What great reward programs are you a part of?