3 Simple Types of Customer Rewards Programs

Posted by Erika Stevens on Wed, Jan 09, 2013 @ 02:53 PM

Simple customer rewards programs

 

One reason that many businesses hold back from starting a rewards program is that they can be very complicated.  When you look at popular rewards programs like Starbucks or Best Buy you can tell that a significant amount of planning and research went into the development of the program as well as the maintenance.  It is tempting to want to emulate the complexity and depth of the rewards programs that these big companies offer and get overwhelmed before you have even started your program. 

But just because there are endless ways for you to structure your customer rewards program doesn’t mean that it needs to be difficult.  You can choose a simple rewards program structure that works for your business and your customers that still offers customer rewards.  In fact customers want to be a part of a rewards program that actually rewards them and isn’t difficult to use.    

1-      Customer rewards program based on the amount spent

Track the dollar amount of each purchase and reward the customer when they have reached a specific amount.  The reward does not need to be a dollar amount off just because you are tracking the amount spent.  Make the level attainable but not too easy. 

2-      Customer rewards program based on the number of visits or purchases of a specific item

This type of rewards program is often referred to as a frequency program or a punch card program.  The one that immediately comes to mind is the old buy 10 coffees get one free!  You don’t have to offer what the item tracked is as the reward either.  You could always have it be purchase 10 coffees and get a free muffin with your next coffee.     

3-      Customer rewards rebate program

Rebate programs track the total amount a customer spends during a specific time period and gives them a percentage back when the time period has expired. 

A customer rewards program can help a business retain and reward its customers resulting in an increase in revenue.  Just because you pick a simple program structure doesn’t mean your program won’t give you results.  Besides happy customers who keep coming back to earn rewards you can use the data collected to learn more about your customers and market to them.  You always have the option to evolve your rewards program to continue to engage your members.  

If you are interested in a program and exploring options be sure to check out our newest loyalty and marketing tool Simpli.   

 

Tags: Loyalty Marketing