For many companies, acquiring and retaining customers isn’t as simple as providing the best service or product. This has many considering rewards and incentive programs to… you guessed it – reward and incentivise consumers. At some stage in our lives we’ve all come across these types of programs, but you may not be aware that there are actually several approaches, each with their own benefits. Take a look at these four rewards programs every company should know about if you want to keep your customers happy and growing with you.
1) Merchant funded Discount Programs
These are rewards programs that are paid for by merchants (merchants = businesses that list their services as part of program) who then give those rewards back to customers as incentives. The greatest benefit of this type of program is how long the investment required is, because you don’t have to fund the offers, all you need is the program infrastructure and support. Like all rewards programs, it needs to be marketed, with a compelling reason to buy for consumers.
2) Points-based Rewards Programs
A points-based rewards program encourages repeat shopping by awarding points for every dollar spent. Customers can then redeem those points for a variety of merchandise or services, such as credit on future purchases, airline miles, and even cash back. This is another common type of rewards program that allows users to earn free products based on their loyalty to a particular brand. The benefit of this variant is that the points give a feeling of “cash” which resonates well with most consumers.
3) Voucher Incentive Programs
A voucher incentive program is designed to reward customers by giving them vouchers to spend in your marketplace. These programs typically work by giving consumers a gift or discount voucher for each purchase they make with your business. Retailers may also offer points which are accumulated with each purchase, allowing consumers to redeem their points for rewards such as free products, services or cash back on future purchases.
Not sure which is right for your business? Contact us today and we’ll take you through the various options.