There are two general reasons for creating a customer reward or loyalty program:
- Devise incentiveÂ 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.
- Prepare to implement the program by clearly explaining it to customers and fully training employees.
- Utilize your customer database by deciding how you will make the offer at the time of their next purchase.
- Develop progressive reward system by making rewards easy to obtain and offer the best incentives forÂ larger ($) purchases, such as your high-end products/services.
- Offer meaningful rewards that also benefit your business by striving to increase the sales of your most profitable products and services.
- Use your database to customize future offers based on customersâ€™ purchase behavior and gain insight for finding new customers who match the profile of your best customers (target marketing).