Rewards Program

Rewards Program: A New Norm in Customer Loyalty

Does it happen with you that you go out on a shopping spree with all excitement to buy new shoes from your favorite brand but you end up finding that they are out of stock? You do have options to go and buy different brand with available stock but you don’t buy because you want them to be of your favorite brand only. This makes you a loyal customer for that particular shoe brand that you want badly. Customer Loyalty is a phenomenon where a customer makes consistent purchase of the same brand giving it highest preference. If given a deep thought anytime, then one might realize that out of so many customers that a brand has, every customer has a different connection with that brand. It is very important for a brand to analyze carefully and segment its customers into various groups based on the way they have interacted so far with the brand.

Analysis of consumer behavior and collecting data about the same would rightly help one to segment its customers into different groups. This will make you understand if:

· The customer is a single time buyer

· There any chance of converting them into a loyal customer by treating them properly

· There is anything that is interesting and engaging them more with your brand

· They have any connection with a potential customer

· There is any possibility of them becoming brand ambassador for the brand

Based on a detailed study of their buying habits and behavior, it will be easy to analyze and segment customers for a brand. Next step after rightly segmenting the customers is to rightly target every segment with an impactful message and promotional activities for every group.

Providing value to your customers by thanking them or providing them rewards is very essential to retain customers. When the customers realize that they are treated well and given importance by the brand then they develop a sense of attachment towards
the brand. Attention, appreciation and sense of concern is what every individual love to get. A simple note appreciating and valuing your customer will help them relate to and connect your brand. An email, social media messages and handwritten letters to your customers, does make a huge difference to make them realize that they are important to you.

While segmenting the customers, one might realize that there are certain set of customers who are privileged as they prefer the brand over other brands more. To value such customers and make them feel a bit different from the rest of the customers, a scheme or program must be designed such as Reward Program that helps them grabrewards and retain them to the brand.

Following are certain do’s that a brand must keep in mind while designing a reward program:

·  It should be designed by making it optimized and mobile friendly:in this fast-moving world going digital, not being there on mobile might cause you loss of many potential customers. It should have a user-friendly interface by not making it complicated for the users to control.

· Keep it simple: Try and design the reward program in a way that makes it easy for the customers to understand. It is a key important point to maintain an explainer page for the program that helps to understand what the program is about, how will it benefit the customer, how to earn rewards, etc. This is very important because your customer must understand the kind of value that you provide to the customer.

·  Maximize the rewards: It is very important to differentiate every brand from other brands in the market. Providing customized, personalized merchandise or adding on to some extra reward would work to impress and provide value to the customer. This makes customers feel motivated and excited and sense that relation with the brand.

· Promotion is the key to program engagement:communicating with the customer to make them aware about your reward program is a very important step. There are various modes to deliver the existence or launch of your program to the targeted group. These includes:

Facebook: it is the medium that is used by every demographic and is the most widely used social media platform in the world. With a very huge user base, the promotion done via this mode is highly visual to a mass audience worldwide.

Mobile messengers: providing some extra bonus points to refer, highly impacts the rate of impression and reach. Majority of the crowd is connected via some or the other messenger and this mode can be creatively utilized to promote the program.

Tweet it on Twitter: hashtag that was introduced by twitter is trending in the world. Although, twitter has a comparatively lesser user base than Facebook but it is highly impactful and visual to the masses.

Inbox it: Email is again a very powerful too utilized to reach out to the masses. Customized emails, with attracting details would help engage and count on the views. Great way to individually update customers about the program.

Planning on some giveaway campaigns on social media helps to reach out to a larger group and is very powerful.

· Inclusion of pictures in the reward program:Pictures have this feature of grabbing the most attention. Given an option between reading or picture analysis, most of the people would opt for picture analysis. It helps the audience to connect to the concept and understand the brand story more easily. Klova utilized this strategy and did brilliant job with their sleep squad program. They made it convenient and easy for their customers to understand their program by utilizing various explanatory images. Pictures make it easy for customer to remember the program and make it more engaging. Utilizing mediums like Instagram, Pinterest could be utilized strategically to reach out to masses.

· Boost it: sending rewards to your customer during their birthdays, anniversaries and festival can help in boosting the reward program, at the same time it will help in increasing the customer engagement.

Keep an eye on your performance:

It is very important for every brand to keep an eye on to their return on investment for every single investment they put in. participation rate is one of the most useful metric to analyze the insight as to how visible and accessible the reward program is. It is calculated as total no. of reward program members divided by total no. of customers. Redemption rate that is calculated by the number of points/rewards your customers have redeemed by the total number you have issued. This helps in understanding the level of indulgence and engagement of the customer in the program.

There are also a lot of tools available online to keep the analytics of the program traced. Getting an insight about the program  performance, one can modify it according to improve its performance.

Edenred Singapore Pte Ltd is one of the brand that helps their client to provide business solutions. In case of any help in designing a program, they design it for their clients brilliantly providing various tools to help in analyzing the performance and consumer behavior.

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