Reward Customers And Watch Your Business Grow

Some businesses offer what is called a continuous reinforcement reward like "free shipping with every order" or "5% discount on orders over $100". This type of reward card program is normally well received, as the customer knows exactly where they stand without having to read the small print. Another popular reward program is called ratio rewards, based on repetition. This is often used by food chains as it encourages customers to keep coming back to finally get a free meal. For example, Nando's restaurant will stamp a customers reward card every time they eat in of their establishments & then depending on how much is spent, the next time a customer returns, they are going to be entitled to either a free drink or free food.

Reward card programs come in lots of different forms but all have the same aim - customer retention. With a lot competition in every marketplace, holding onto valued customers is a must. Learning how to effectively start up a reward program from the outset is vitally important. Tweaking the formula whilst already live may confuse your customers - people usually do not like modify. So what are the most effective programs?



Finally & perhaps becoming the most often used reward program is a points card system. Here, points (or something similar) are accrued, then traded for goods. Most of the giant supermarkets now have these types of card & are a great customer retention tool. A points card exhibits traits similar to fixed ratio rewards, though rewards can vary based on the number of points used. Because a customer can buy different rewards based on varying number of points, there is always the potential of getting a reward.

Interval rewards are based on time. This reward program can vary from a store's annual sale to a every day lunch special from 11 a.m. to two p.m. The variable version includes radio contests that grant prizes "sometime this hour." You don't know exactly when, but fundamentally it is every hour. & naturally the most common & all of us utilize the most is "Happy Hour", with bars offering drinks two for one or half cost at various times of the week.

So for any business thinking of beginning a reward card program, although the finish aim will always be customer retention, how it is achieved will vary. Thought must go in to what type of customers a business attracts, how regularly they will use a service & if the reward program ended, would the customer still return.