Online and offline businesses often use reward points as incentives to encourage customers to engage with their store. Strong incentives keep customers coming back to the store and making repeat purchases. They are the best way to make existing customers feel valued and even introduce their friends and family to the business.
Customers can earn points by taking different actions on a store, like registering a new account, making a purchase, referring a friend, posting a review for a product, etc. They can exchange these points for rewards on subsequent purchases. However, implementing a reward system is not sufficient. Implementing a fascinating reward point strategy is required to boost the store’s revenue. Let’s look at the top five strategies that make a reward point program work effectively.
1. Different Levels in the Program
This strategy aims at classifying customers into levels based on their points earned. Each level gives special privileges to the customers. Shoppers with the maximum points are at higher levels where they are eligible for more significant discounts and special benefits than others. Progressing to a higher level is like a challenge for the customers. In a way, they get a reason to shop more and move up.
2. Expiry Date to the Reward Points
Giving an expiry date to the points stimulates customers to shop more at the store quickly. Giving customers points makes sense only if they come back to the store soon. Expiry data urge the customers to act sooner. For instance, customers may get a 20% discount only if they use their earned points within six months. Therefore, they get a solid reason to revisit the store within that period and shop again.
3. Free Products in Exchange for Points
In this strategy, customers can receive a product in exchange for their points. The cost of the product they receive is often less valued than the money they spent on accumulating the points to be exchanged. Therefore, store owners still make a profit by giving away free products. Besides, it is also an excellent way to give away outdated or out-of-season products. So, exchanging points for products is beneficial for both sides.
4. Coupon Codes for Points
Providing coupon codes in return for points is an effective strategy to boost store sales and revenue. In this strategy, when customers accumulate a particular number of points, they can exchange them for getting a coupon code. They may redeem this coupon code to get a special discount or cashback when they buy from the store before it expires. For instance, when a customer accumulates 1000 points, they may exchange it for a $25 coupon. They may redeem this coupon to get a $25 cashback for their next store purchase.
5. Sweepstake Entries for Points
Getting sweepstake entries in exchange for points is a more exciting venture for customers. Many people who believe in luck love getting surprising things. An opportunity to win adorable presents creates interest in the customers. A store may use this strategy to reduce liability without giving away substantial cash for each point.
Using the strategies mentioned above, a store can attract more customers and improve its relationships to boost revenue. With the right reward points strategy in place, a store can retain existing customers, attract new customers, and strengthen customer loyalty. The more repeat customers visit the store, the more sales and revenue they generate.
To sum up, implementing the right strategy significantly benefits the store with its rewards point program. Knowing how to make the best use of the program helps improve brand reputation, boost customer relationships, and support strong revenue growth. A store must select the best strategy depending on its business and customers.
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