Customer reward points are one of the most effective and inexpensive ways to grow your business. Compared to what you probably spend to acquire a new customer, an affordable way to keep a profitable customer buying more is the preferred route. Company reward programs should be considered essential to your customer strategy.
The great thing about giving rewards points as part of customer loyalty programs is that almost every business can benefit from such a program – no matter your size. It’s inexpensive, fast, and easy to implement no matter the size of your team. Points can be accumulated for spending specific amounts, visiting a certain amount of times, or because of other activities that benefit your business.
Here are some of the advantages of using rewards points in reward programs.
They Foster More and Larger Purchases
A customer earning points to receive a new reward or move up to a new customer tier will justify spending more and spending more often. When in your shop, adding on a few items to get to the next rewards tier or to receive $5 cashback is a no-brainer for that customer.
Customers with a free drink or in-store credit on the line will be back and consider you above others. And if they’re shopping online, having reward points or cashback makes clicking check-out even more satisfying.
Customers Will Market You for Free
There is no better type of marketing than marketing done by your customers. It’s free and more effective than anything else you can do. Walking around with a rewards card and telling everyone about your great rewards program is only the start. Businesses can reward their customers with points for referring others. Want a ton of free social media advertising targeted to your potential customers? Reward your customers for sharing your posts.
Customers Become Happier and Feel Like Their Part of Your Team
When a customer is paying, and you see they have rewards points, it’s an excellent opportunity to thank them and make them feel like a part of Team You. Even better, instituting a tiered rewards program reaffirms their value every time they are checking out – especially if your team members thank them for being a high-tier member.
That higher-tiered customer can be a customer for life as long as the service and rewards meet their expectations. There’s a perfect reason that airlines have exclusive lounges for frequent fliers. Happy customers stay with you and spend with you. There might be no better way for building customer loyalty.
Points Foster Engagement
If there is one marketing theme in the 2020s, it’s customer engagement. People are bombarded with information daily and getting them to interact with you is everything. Checking their point balance on your website is a huge win. Now they are reminded of you, can see what new specials there might be, be notified that a new line has come in, or decide that ordering some take-out sounds pretty great.
Your Logo Gets to Visit New and Exciting Locales
Yes, your logo is on a high-quality points card, and getting to travel the world with your customer. Guess who is reminded of you every time they dig through credit cards. That customer sees you over and over.
Valuable Information Comes With Those Points
Here are a few of the valuable pieces of information you know have access to when someone has a points card because they gave it to you:
- What they buy
- How often they buy
- How much they spend
- Their email address
- Their physical address
- Their phone number
The value of this information is immense. Has a new line of clothing come into the store? Email them. Have a pizza special this month? Send them a coupon.
Do you want to know how well certain products perform, who buys them, and how people shop in your store? Use that information you gathered to start creating better reports. A card from Juice Banking and those inexpensive rewards have now given you a tremendous opportunity to understand your business offerings and continue to optimize them, increasing profits and customer satisfaction.
Customer reward programs that offer points aren’t just nice to have – they are essential to your business. For little money and effort, you have access to data, free marketing, increased purchasing, customer loyalty, and customers that buy more from you.
To get your customers earning points of your business’ individualized card, get started today.
