How and Why to Implement a Loyalty Rewards Program

by: Luke Kreitner November 10, 2016

loyalty rewards programAs a business owner you have probably considered whether or not a loyalty rewards program might be suitable for your incorporate as a standard policy. It may seem appropriate for a storefront based business, but rewards work well for service oriented and online businesses as well. The bottom line is customers who feel appreciated are going to remain loyal to you rather than trying your competitors for the sake of comparison.

What is a Loyalty Rewards Program?

The basic loyalty rewards program is to simply give a customer credit towards their next purchase as a way to ensure repeat business. When properly planned and implemented, the program can be much more and provide your customers with creative incentives to find reasons to purchase your goods or hire your services. A hairstylist, for example, may find customers tend to get haircuts every three weeks instead of once per month with incentive rewards, and realize they make an extra $50 every two months, which is well worth a slight discount or small gift with the next styling session.

Who Benefits from the Program

On the surface, the customer benefits from making repeat purchasing while participating in a loyalty rewards program. Client based services with an ongoing relationship in which the business maintains records for the client can also provide a gift card or gift catalog credits to reward loyalty. Clients and customers, as the immediate beneficiaries of the program, seem to be the most pleased with it. In actuality, the business ultimately benefits from the program as they maintain the steady loyal customers and clients needed to keep their company active with a regular income.

Addressing Customer Concerns

Of course, a loyalty rewards program can never replace the basic function your business provides by providing great service and quality products. Your customers will recognize when your primary service is being filled and their concerns and needs are being met. A well planned loyalty rewards program will in some way acknowledge how you recognize their needs and interests through the providing rewards which are commonly appreciated by people who use the services you provide. Such a program shows you've put the time and thought into your business to truly provide the service you advertise and maintain an understanding of customer needs.

Ultimately, the style and function of a rewards loyalty program can vary according to the nature of any particular business model. The best way to approach the implementation of the program is to contact a professional who is familiar with the different rewards programs available and who has worked with the rewards programs enough to determine which will work best toward your needs.