While gaining new customers is critical to your brand's success, so is retaining existing clients. You can maintain a consistent stream of revenue by motivating clients to keep buying your products and services. Customer reward marketing programs are one approach to encourage customers to return.
In this post, we will learn what is reward programs and discuss the advantages of using them.
Customer reward programs are point-based loyalty programs that offer discounts and other incentives (gift cards, coupons, vouchers, cashback, or free or discounted products or services…) in exchange for increased customer involvement and purchases.
Every reward program operates in a unique way. Some businesses reward clients based on how much money they spend, while others employ a point system. Special prices and promotions for members are also available through reward programs. Companies frequently use mailing lists to remind loyal customers of special offers, encouraging them to keep shopping.
Reward programs have been around for centuries. You can employ customer reward programs to boost engagement, brand awareness, and purchase frequency from your customer base, from the early "buy three, get one free" punch-card programs to the multi-tiered VIP and everything in between.
Different sorts of reward programs may perform better for your brand, your customers, and your sector than others. Here are a few examples of how you can use them in your business.
A loyalty program and points scheme usually work hand in hand, owing to the increased impact that combining points and referrals provides. A points program can be as basic or as complicated as you want it to be on its own. The amount of complexity depends on the sorts and number of earning and redeeming actions you want to provide your clients.
At its most basic level, a points rewards program is users participating in an activity, earning points for completing it, and then cashing in those points for a reward after a particular number of points have been acquired.
Earning actions include:
Reward redemption examples include:
You may encourage your customers to interact with your brand in a variety of ways to maximize the revenue gained through the referral program.
Existing customers are rewarded for recommending your business to their friends and family through referral marketing. This can include everyone they notice on social media seeking a product similar to yours, as well as their family and acquaintances.
It's also known as word-of-mouth marketing, and it's a marketing strategy that relies on satisfied customers. Referral marketing persuades them to become self-promoters of your goods in exchange for a reward.
At all phases of the sales funnel, marketers regarded referral marketing as the most effective approach. Why? Because new clients who come to you as a result of a referral have already developed trust in your brand.
According to an old (but still current) Nielsen survey, personal recommendations are one of the most trustworthy types of advertising.
You don't have to spend money to get in front of new customers and then provide content that earns their trust using a referral program. The individual making the suggestion already has it, which lends credibility to your product. Because of this, word-of-mouth marketing generates twice as many sales as paid advertising.
What's the best part? Encourage existing customers to refer you to their friends and family to boost their lifetime value and help you retain clients. These clients are worth up to ten times what they paid for their initial purchase.
Pat Flynn, a marketing adviser, defines affiliate marketing as "the process of earning a commission by advertising another person's (or company's) product" from the affiliate's perspective.
Affiliate programs allow retailers to access a network of partners to market products to their audiences, as well as provide a link for customers to purchase directly from the retailer. In exchange, retailers pay these affiliates a fixed percentage for each sale made through their network.
Affiliates advertise and link to your products on their own websites, blogs, social media accounts, and emails. You pay the commission (for example, 10%) based on the total value of the order when customers click that link and make a purchase from your store.
Pay per sale is a term used to describe how most retail affiliate networks reward affiliates for each order that originates through their unique affiliate link. Some retailers, on the other hand, choose to pay affiliates per lead, per click, or a mix of the three. The way you reward affiliates, as well as the percentage commission you offer, can change over time.
The ideal technique for your store is determined by the primary purpose of your affiliate marketing. Pay-per-click may be the greatest solution if you want to raise brand knowledge and recognition. The traditional pay-per-sale is a preferable solution if you're only looking to increase revenue.
A loyalty program can help you to make your present customers feel good about supporting your brand. You're demonstrating your appreciation for their business by thanking them for their purchases. Customers may feel as if they are saving money as a result of rewards, making them more likely to continue to support your business.
Creating a client reward program that offers attractive offers and rewards can help you boost your brand's image. You can target people who shop to save money and show them how much you appreciate their support.
Customers may see your brand more favorably if they believe it provides them with tremendous value. Making pleasant associations in people's brains can help them feel good about shopping with you.
Not only help you acquire new clients, but online shopping rewards also cater to existing ones. People may wish to take advantage of your offers if they hear about your excellent reward program.
Some companies even employ referral programs to persuade their consumers to recommend them to their friends and relatives. For each person they suggest, current customers receive a special offer, and new customers receive a special offer as well.
Of course, one of the main reasons for having a reward program is to ensure a continual stream of income for your business.
Customers may feel more tempted to shop with your business if you frequently provide them with rewards, promotions, and special deals. Even though customers are saving money on your products and services, your discounts may persuade them to purchase more than they otherwise would. Simply attracting customers to your store or website increases your chances of earning a sale.
Because of the value they provide, all well-conceived incentive programs are meant to improve the whole customer experience and attract long-term repeat customers. Regardless of the type of customer reward program you want to build, the goal is for each encounter with your program to either provide value to your customers or generate value for your company.
If you are considering creating a reward program for your PrestaShop store, our module "Loyalty, referral & affiliate program (reward points)" would be a great choice. Integrated with all 3 popular marketing programs namely loyalty program, referral program, and affiliate marketing program, "Loyalty, referral & affiliate program (reward points)" will be an effective tool to help you gain higher sales, grow brand recognition, and promote trust in your business.