The impact of rewards on a loyalty scheme
The success of any loyalty programme depends on several factors. It is generally considered that the most important of these is meeting the expectations of the target consumer group. This will make customers more willing to return to our shop to shop, and do so more frequently. Another important factor that can contribute to the programme’s success is the appropriate selection of benefits for each participant. It might seem like a very obvious point, yet many companies still fail to design their reward schemes effectively.
Rewards as a priority for any effective loyalty scheme
The main aim of any loyalty scheme is to forge a strong bond between the company and the customer. Meeting consumer expectations and building a strong relationship will all contribute to increased loyalty and engagement amongst scheme participants. So how can we encourage customers to shop at our store in particular? First and foremost, the products offered by the brand must catch the eye and spark interest among customers. The benefits available through the loyalty programme must also meet the criteria described above. The proposed rewards must be carefully thought out and tailored to each customer’s preferences. Different groups of consumers will be interested in different types of rewards. It is therefore important to thoroughly analyse and understand customers’ expectations regarding a potential rewards catalogue.
The most sought-after rewards in loyalty schemes
Nowadays, every loyalty scheme offers its customers various types of bonuses.
Free points seem to be the most popular. The criteria for awarding them depend on the rules set by the organiser. Users can earn them, amongst other things, by spending a specified minimum amount or by purchasing selected products. Accumulated points can be exchanged for prizes or donated to a chosen charity.
The second, equally popular way of rewarding customers offered by loyalty schemes is to give them free gifts. These are usually low-cost rewards, but this gesture allows the brand to show its appreciation to the customer for their purchases. When a programme member receives an unexpected shopping gift, they feel appreciated by the company. As a result, the consumer becomes more loyal to the company and motivated to participate actively in the programme.
Personalised promotions for loyalty scheme members are another example of the benefits offered by many companies. Creating a personalised promotional offer will not only encourage the customer to make a purchase, but will also make them feel special and valued. These simple marketing tactics will encourage consumers to visit the programme’s website more often in search of new promotions they’ll want to take advantage of.
Recently, promotional offers have become popular whereby customers can receive a second product for free when they purchase a selected range of items. Introducing this scheme into our company’s loyalty programme will encourage consumers to shop at our store.
So-called ‘shopping bundles’ have recently become an innovative form of discount. When purchasing a particular product, customers are given the opportunity to buy additional items at an attractive price. This is a method known as cross-selling, which is becoming increasingly popular on the Polish market. If you’d like to find out exactly what cross-selling involves, please visit our blog, where an article on this topic will be published shortly.
Most customers want to be treated on a par with the most important members of the loyalty scheme. In this case, the ideal solution would seem to be the introduction of so-called VIP accounts into the membership scheme. Users who make frequent, high-value transactions can progress to an increasingly higher status within the membership scheme. An additional incentive is the fact that such customers receive early access to various promotional offers and can also take advantage of a greater number of discounts offered by the organiser.
Vouchers are another way of rewarding the most loyal and active customers. They are usually in the form of cash, allowing the customer to use them for any purpose of their choosing.
Summary
When creating a loyalty programme, a number of important criteria must be taken into account. One of these is the development of a personalised offer that will meet the expectations and requirements of the target consumer group. It is also worth ensuring the best possible selection of benefits that will prove popular amongst users. A properly motivated customer will be more willing to take advantage of our company’s product offers and do so more frequently. Unique and personalised rewards will further increase customer loyalty and strengthen their bond with the brand. All these factors will contribute to the success of the loyalty programme and to an increase in the revenue generated by the company.
How to prevent abuse in loyalty schemes, Management of promotional lotteries, „Premium” loyalty schemes and paid membership, Methods of paying out cash prizes
