The Marketing Power of Rewards Programs
A rewards program can help you build customer loyalty, deepen engagement and serve as a marketing benefit you can tout to attract new customers.
A rewards program can help you build customer loyalty, deepen engagement and serve as a marketing benefit you can tout to attract new customers. Need proof? Research shows consumers in the United States account for more than 3 billion memberships in consumer loyalty programs. Here’s a closer look at how your business can leverage consumer interest in rewards, along with best practices you can adapt from major brands’ most successful loyalty programs.
Lead with a strong offer.
Customers may be willing to sign up for your rewards program, but it’s important to know that their membership doesn’t equate to loyalty. In fact, just 13 percent of customers are complete loyalists who never shop around. Your rewards program should be appealing enough to entice customers to want to sign up -- and use it repeatedly. Consider how your rewards program could be structured to reward customers when they agree to join, and to encourage them to return consistently. The rewards program offered by outdoor retailer REI, for example, charges members a fee to join -- but then offers a coupon in the same amount of the fee to offset the cost of the program, as well as access to additional coupons throughout the year, and the ability to earn points on purchases for even more savings. Read more
Kristen Gramigna - Entrepreneur - 4 June 2017