“Hello, would you like to sign up with our Reward MyPoints Credit Card today? It will take 5% off your next purchase and it is free.”
Customer (reluctantly): “Uh… sure.”
“Okay, excellent. Here are the forms; please fill them out thoroughly and customer service will assist you when you are finished.”
This situation can be awkward – for both the employee and a customer. The employee is required by their manager or supervisor to ask this; having little to no prospects of receiving an enthusiastic response (even if there is incentive!). The customer then feels obligated to a degree to fill out the complicated paperwork because they had already responded with a “yes” despite the fact that they are not a frequent buyer.
Regardless of these situations, reward programs are so heavily encouraged for any establishment with repeat business. They are almost always guaranteed to increase overall sales and provide value to both a company and its clients.
These loyalty programs can be manifested in the form of a debit/credit card to that particular store, or even something as simple as a punch card.
It is evident that many corporations have taken the leap and have definitely been overcompensated for it. Starbucks claimed My Starbucks Rewards single-handedly contributed to their 26% growth in profit and 11% jump in total revenue.
Yet some business owners just starting out considering the feat may feel hesitant at the thought of added cost. Nationwide and well-renowned companies have the varied locations, the marketing, and the expanding budget to blow money on rewards for customers if necessary. What you may find is how simple rewards can be, and the Dos and Don’ts to stop you from wasting money.
Here are some of the best ways to utilize rewarding faithful customers, and what your patrons may be expecting from you.
Ensure there is a form of feedback. Regardless of the features in place, make certain that there is either a forum or even a requested survey upon receipt that prompts the customer to provide their response. Simple Facebook pages allow ratings ranging from 1-5 stars, which the administrator of the page cannot remove. This shows credibility if ratings are many in number and are consistently high. If you have not had a lot of people sign up for rewards lately, maybe it needs to be redesigned or revamped to be more accessible.
On a budget? No problem. Mass orders of debit or credit cards can be viewed as dauntless and almost foolish if there is any anticipation of there being little to no response. Fortunately, this is the day in age to be an entrepreneur, thanks to technology. Due to our culture’s current mobile-saturated society, there are some digitized rewards that can benefit both the company and its regulars. Apps like Perkville have subscriptions as low as $50 a month!
Have set goals. What do you wish to accomplish with this reward system? Obviously to create lifelong customers and build retention – but make this a set rate and number. Even a member of a sales team that secures a handful of new loyal customers into the program should have some motivation, right? A reward system in and of itself?
Set a percentage of growth as a goal that the company agrees is attainable and set a date for this to be accomplished. Use charts and graphs to document change. This will inspire your team and serve as a “finish line” for everyone involved. It never hurts to have the ends in mind when you begin.
Make the rewards accessible. Frustrations can arise when a frequent buyer must jump through hoops to receive a simple reward such as a 20% off or a BOGO deal. Simplicity is key, whether that be swiping a card at purchase to receive rewards or generating savings through a mobile app. If someone goes out of their way to buy from you and sign up as a loyal customer, then be true to them in return!