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Improve Performance for Loyalty or Rewards Programs

E Column

Most companies these days have rewards programs for loyal customers. Though how successful these programs are varies considerably from company to company. In April, I came across an interesting article concerning rewards programs on Marketing Profs by Samir Palnitkar.

One thing that struck me was his assertion that consumers are enrolled in an average of over 30 loyalty or rewards programs, but are active in less than half of those programs. Based on my own experience I would say that is true. These days it is easy to sign up for a rewards program, especially if bonus points or rewards are given for signing up. How many rewards programs do you belong to that you seldom use?

The article gives some good ideas about how you can utilize your rewards program members in other ways than just through purchases. You may allow them to earn points towards rewards for talking about your business, products, or staff on social media. If they write a review, for example, they get extra points.

Additionally your rewards members have to feel that, they can achieve at least the lowest couple of redemption options, otherwise they will get discouraged. Design a program with different tiers and think about how the rewards may be a mix of products and experiences. For example a reward might be that they may use some of their rewards points to attend an event that you are hosting. If you are doing it right, getting them to the event should result in increased sales. You may also award points for signing up to receive emails from you and give bonus points with the first three months that they are signed up. Consider giving more points, instead of discounts, where the points are redeemable for future purchases.

Make sure that your rewards program is a prominent part of your website as well as prominently displayed in your place of business (put signs among merchandise displays) where customers congregate and at the cash register.

There are many more things you can do to maximize the use of reward points, start thinking about what will work for you.

A tip of the glass from me to you

Elizabeth SlaterE Column
by Elizabeth “E” Slater, In Short Direct Marketing

A recognized expert in the fields of direct marketing and sales in the wine marketplace. Slater has taught more wineries and winery associations how to create and improve the effectiveness of their direct marketing programs and to make the most of each customer’s potential than anyone in the wine industry today.

Follow E on twitter @esavant and facebook.

 

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