Customer Loyalty or Reward Programs

There are two general reasons for creating a customer reward or loyalty program:

  • Devise incentive  for existing customers to buy additional products/services
  • Strengthen customer relationships with the goal of diminishing the likelihood of customers switching to your competitors.

Here are suggestions for a successful reward program.

  1. Prepare to implement the program by clearly explaining it to customers and fully training employees.
  2. Utilize your customer database by deciding how you will make the offer at the time of their next purchase.
  3. Develop progressive reward system by making rewards easy to obtain and offer the best incentives for  larger ($) purchases, such as your high-end products/services.
  4. Offer meaningful rewards that also benefit your business by striving to increase the sales of your most profitable products and services.
  5. Use your database to customize future offers based on customers’ purchase behavior and gain insight for finding new customers who match the profile of your best customers (target marketing).