If you think choosing and setting up your Loyalty Rewards Program is where your work ends, think again. Your business acumen is put to test at one critical stage: deciding the type and value of reward you want to offer your customers. At this stage, you have to carefully balance the bottom-line, customer expectations and marketing goals to finalize what you will give back to your customers as rewards. Before you set out to decide the monetary value of the same, go through the following list to understand the various types of rewards you can offer:
Discounts
The simplest of the lot, discounts are the most effective in helping customers reach a tangible and quantifiable amount of money they have saved. Points can be redeemed for discounts based on a ratio you decide, and this strategy is deployed routinely by retailers to increase the average customer bill size.
Cashback
As the name suggests, every purchase by the customer results in a certain amount of the billing amount being discounted automatically in the form of a ‘cashback’ and credited back to the customer. Cashbacks are best recommended for customers who pay the bill using a credit card or an online wallet.
Free Add-On Services
Loyalty points can be exchanged for services like free shipping, free maintenance for a certain duration, free warranty, or free customer support. Often the high cost of delivering or maintaining a product is a deterrent for customers to make the purchase. However, you can offer these services to returning customers free of cost, because they will keep adding value to your business in the future.
Freebies
Generally, freebies of lower value are offered as a free gift alongside a purchase by retailers in exchange for loyalty rewards points. You can use this technique to introduce customers to new products or even use the ‘Buy X products, Get X Free’ approach for your Loyalty Rewards Program.
Access to Exclusive Products
Remember, a customer loyalty program is as much about the feeling of being valued, as much as it is about the savings. In order to make your customers feel valued, you can offer them early access to new products, information about new launches, invite them for an event, or simply offer them exclusive discounts/offers/freebies which are available only to members of your loyalty program.
If you put your thinking cap on, there are several other ways to reward and make your customers feel special. You don’t have to stick to conventional ways of rewarding your customers and can come up with a business-specific solution as well. Loyera, an intelligent and intuitive cloud-based loyalty solution helps businesses manage customers loyalty and rewards seamlessly. Learn more about how Loyera can help you here.
At the end of the day, if the reward you offer encourages the customer to return, you are on the right track. What are some of the rewards you have used for your Loyalty Rewards Program to entice your customers to keep them coming back for more? Let us know!