Rewards programs are now common as more and more businesses in various industries get into this method. From the travel industry to hospitality, dining, finance and retail, many companies offer special privileges to their clientele through a rewards program.
A rewards program is also sometimes referred to as a loyalty program. As the name implies, it acknowledges valued clients and provides benefits to those who avail of the program, may it be through gifts or discounts after accumulating certain points or fulfilling particular requirements. For EO Melbourne, for example, a Rewards Program is in place for members who stay in the organisation longer.
While there may be some cost and effort involved to make this program work, there is immense benefit and advantages it can bring to the brand if done properly. Firstly, there must be a person dedicated to looking after the program to make sure it works. Another thing is to keep your promises and deliver the rewards at a timely and efficient manner. The returns, however, are good.
Customer retention
The most obvious advantage of having a rewards program is customer retention. Some studies have indicated that it costs more to acquire new clients than to maintain existing ones. With a rewards program, you attract repeat customers and build loyalty with them. Having a card that consumers carry around will help remind them of your brand.
Data gathering and market research
Since customers have to sign up to join the program, you instantly get their information and file them in a database, which you can later use for market research. Through their details, you can do some profiling on their demographics and create constant communication with them. You can run surveys, send out newsletters, or announce special events to them.
Building relations
When you communicate regularly with your loyal customers, you strengthen your relationship with them. As you take care of them through this program and offer remarkable benefits to them, they will feel valued by your company.
Drive sales
Having a rewards program may not be a guarantee of increased sales, but it will be a factor in helping bring in sales directly or indirectly. You can come up with special sales events or exclusive promos to rewards members and encourage them to patronise your products or services.
Generate referrals
If rewards members are satisfied with the program, they will even end up as our brand ambassadors as they share their positive experiences with their families and friends. It can generate referrals and bring in new customers to your business.
However, remember that several other companies are also offering rewards programs. Your direct competitors may even be doing the same thing. Make sure that your program stands out and provides better and enticing prizes and benefits to your loyal customers.