Questions to Ask Before You Start Your Customer Rewards Program Part 4

Posted by Erika Stevens on Fri, Feb 08, 2013 @ 03:15 PM

There are only two more posts in the series “questions to ask before you start your rewards program” before we move on to other exciting news and information about loyalty marketing and rewards programs.  If you missed any of the other questions be sure to check out part one, two and three.  I’ve answered questions about enrollment, communication, participation and rewards for your rewards program and now it’s time to talk about structure and technology.

Customer Rewards


What kind of rewards program structure should I use?

For most businesses it makes sense to pick a simple program structure that is easy and rewards your customers in the way they prefer.  There are a multitude of program structures you can choose from yearly rebate to a tiered points program but the two rewards program structures that I think fit most small to medium sized B2C businesses are frequency and spending.     

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.     

What kind of technology integration is required for a rewards program?

The simple but not so simple answer is actually a question…how much time and money do you have?  While having your rewards program completely integrated with your POS is ideal it can cost a lot of money and take a long time to implement.  Some POS systems have loyalty modules already built in that can work well.  If you are interested in tracking purchase details to a SKU level a rewards program integrated with you POS is the way to go. 

Beyond your timing and cost restrictions it depends on the kind of rewards program you are offering and what you are tracking.  If you are just looking track amount spent or items purchased a stand-alone terminal or a program that runs on a tablet is cost-effective and delivers enough information for you to know who your best customers are and communicate to them.  No matter what technology you use the important part is to track rewards and promotions back to your customers to see who is redeeming.  

Come back next week for the last of the 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