Questions to Ask Before You Start Your Customer Rewards Program

Posted by Erika Stevens on Fri, Jan 18, 2013 @ 02:00 PM

Are you thinking about launching a customer rewards program but not sure where to start?  After years in the loyalty marketing industry I have had many merchants come to me looking to start a rewards program or enhance their existing rewards program with plenty of questions.  With the launch of our new blog I thought it would be a good time to share some of the questions we receive and some helpful tips.

Customer Rewards Program

 

Will my customers participate? 

While it is easy to just say yes it isn’t always true.  No matter how well thought out or perfectly implemented your rewards program is you are not going to have 100% participation.  Every business will have customers that love rewards programs and will automatically join as well as those that just won’t bother no matter how enticing your rewards are.  Once you have accepted that you will not have 100% customer participation there are a couple of simple ideas to maximize your customer participation. 

The first idea to increase customer participation in your rewards program is to make it easy to participate.  That sounds simple enough to do, but it really needs to be integral in every step of your rewards program from enrollment to receiving rewards.  I will give ideas for specific ways to easily enroll your customers in your program in a future post, but for now know that you should capture the minimum amount of information while the customer is at your business.   

The second idea for making your rewards program easy to participate in is not choosing a complex rewards program structure.  Last week I wrote about 3 types of simple customer rewards programs that businesses can implement.  While a points program with multiple rewards levels and surprise perks can be effective for a company like Starbucks, this kind of complexity isn’t good for everyone.  Keep your rewards program simple to explain and understand and it will be easier to engage your customers. 

How will I communicate my new rewards program to my customers?

It isn’t enough to just start a program, you need to alert the masses about your new amazing customer rewards program!

If you have been gathering your customer's email addresses be sure to send an email blast introducing your new rewards program.  It can also help to add an extra incentive for those who come in to join after they have read the email. 

Use the communication channels where you are already engaged with your customers.  Once you have launched your program make sure to post about it on you Facebook, Twitter and whatever other social media channels you are using. 

Of course having your employees engaged and talking about your program along with in store signs and information about the new rewards program is the best way to capture customers attention while they are at your businesses.  This can be as simple as a sign at your point of sale just be sure that you are displaying information about the rewards program where your customers can see.  

 

Come back next week for two more questions to ask when starting a customer rewards program.

If you are looking to start a customer rewards program and researching different options be sure to check out our website to learn more about our marketing and rewards solution Simpli.

Tags: Loyalty Marketing, Customer Experience