Customer rewards make a difference

Almost three fourths of A mericans with household incomes over $75,000 participate in at least one reward program, and the vast majority of these individuals say that their membership influences their purchasing decisions.However, you should also know that there’s also turnover in these types ofprograms: about 42% of individuals who participate in rewards programs say they havestopped participating in at least one program, and three-fourths of those people say they purchase less from the company after they stopped participating.What type of rewards can you realistically offer? Will the rewards be seen asvaluable? Put pencil to paper and calculate what type of investment you areconsidering for your rewards program. Offering a reward after twenty cups ofcoffee will cost less than offering it after ten cups of coffee, but will this beappealing to your customers?Therefore, loyalty programs that resonate with customers have less to do with a matrix of tactics and more to do with the depth of knowledge you have about these customers.

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“we like to reward our customers by giving them recognition in our store. we have a list in our store where we put the names of any of our customers who recommend/refer another customer to us. we also print up a monthly newsletter and we give credit to our customers that make suggestions to our store by listing the suggestion of the month. our customers say they like being included and they look forward to see what someone new has contributed to our store.”todd h, cedar city, ut fitness center

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