Kinds of rewards program
- Cash Rewards: This is the most common type of reward program, and it rewards customers for doing things such as buying products or services from your brand. The cash rewards can be in the form of money, gift cards, or other forms of currency.
- Points Rewards: This type of reward system rewards customers for referring friends and family to your brand. Points can be earned by referring friends and family members to your brand through social media, online reviews, or other means.
- Digital Rewards: This type of reward system rewards customers for doing things like subscribing to your email list, liking your Facebook page, or following you on Twitter. Digital rewards can be in the form of products or services that are offered by your brand.
Points reward programs; these give clients points per a specified amount spent on products from the brand. The points can then be used in future purchases. They usually cost nothing to sign up, making them accessible to people. One of its disadvantages is that the value is usually minimal and requires continuous purchasing to be of use. Cashback reward programs; are similar to the point program in the sense that you have to spend on the brand products to receive a certain amount, generally in the form of coupons or cashpoints that can only be used to purchase the brand products. One of its disadvantages is that there is no immediate pleasure, it takes so many purchases the people don’t even care for long. Punch card reward programs; these programs give their clientele printed or online cards which are punched anytime a purchase is made. After a predetermined number of holes are made, the client will qualify for a reward. One of its disadvantages is that people can make holes to falsely claim rewards which can cause the business loss if it happens regularly. Ranked reward system; these programs place clients in different ranks depending on different criteria e.g. amount of money spent on the brand. Each rank is given different rewards with the most exclusive and valuable rewards reserved for the top ranks. It encourages people to spend more to access the exclusive rewards. One of its disadvantages is that it may not give rewards of much value to clients that spend less, hence, discouraging them. Alliance reward programs; these programs are mostly used by a collection of brands which affords clients a wider scope of how to spend their reward amongst other alliance members . One disadvantage with this type of program is that it does not give any form of loyalty towards one specific brand , defeating one aim of this type Reward Programs ..
Benefits of rewards program.
- Increased employee productivity.
- Increased customer satisfaction.
- Increased brand loyalty.
- Increased employee retention rates. ..
The major benefit for customers is that they get something in return for leaving their money behind. Rewards can come in the form of points that count as discounts or cash back or free items and exclusive access to certain products and services that clients not signed up to the rewards programs do not. For the company, this data can be used to predict customer wants to modify their marketing and other sectors to cater to this need. Well-planned rewards programs can increase the percentage of regular customers.
How to get into rewards programs.
If you are a returning customer of a brand, you may be eligible for rewards and bonus points. Rewards can include discounts on future purchases, free products, or even exclusive access to events. Bonus points can be used to redeem rewards or to buy products and services outside of the brand’s normal price range. To maximize your rewards and bonus points potential, be sure to sign up for the brand’s reward program when you first make your purchase. Some brands offer their programs automatically when you make your purchase online, while others require you to contact customer care to sign up. Regardless of how the program is activated, it is important to remember that different brands offer different types of rewards and bonus points so it is important to read the terms and conditions carefully before signing up. ..
Companies that give the top reward programs available right now.
Conclusion
Brands that offer rewards programs to their customers are typically seen as being beneficial to both the brands and their clientele. This is because the brand gets a regular client and the client gets something for patronizing the brand one too many times.
