Benefits Of A Business Rewards Program

Nothing can spiral your business into the waves of success faster than a well thought out and strategically rolled out rewards program

. Many companies now find it extremely necessary to develop ways of rewarding customers as this is an effective way of attracting and retaining loyal customers. In times gone by, there was no need to put too much effort in rewarding a customer and the best efforts would involve a simple car wash or a company wall clock. Current times characterized by stiff competition between companies have forced business owners to up their game especially with regard to the rewards they offer customers.

To illustrate just how vital rewards programs have come to be, it is important to examine the types and caliber of businesses that are now investing greatly in the idea. Airlines are among the most notable with their extremely effective frequent flier reward programs. Travelers who frequent specific airlines get a card that accrues miles which can be used for future trips. At first this was the preserve of just a few airlines but travelers now expect each and every airline to have a reward scheme that operates this way. It has become a determinant of what airline one prefers as a travel partner.

Rewards programs are now widespread and very instrumental in determining the proceeds made by a business. Grocery stores, fuel stations and even convenience stores all have reward methods that they use to entice customers to be loyal. Buy two get one free offers, weekend discounts for loyalty card holders, confectionery for certain purchases and even company shirts and caps are some examples of rewards that are usually given to customers at such business premises. Rewards not only work to improve profits for the business but also help to create a cordial relationship between the customer and the service provider. It is such relationships that usually lead to the fostering of long lasting loyal customer-provider relationships.

Rewards program do not end with a one on one relationship between the customer and seller however. We live in a technological world and everything, even marketing efforts, is made much easier by computers and the internet. There are now ways of rewarding loyal customers online through social interaction sites and websites dedicated solely to rewarding a specific company's clients. Software designed to contact and keep in touch with loyal customers has been created taking the whole reward system a notch higher than just handing a gift to a customer at the grocery store.

While the idea of a rewards program may sound like a fast and easy way to get customers rushing to your shop, it requires a lot of deliberation and budgeting because substantial amounts of money and other resources go into formulating a reward system in today's very competitive market. You have to consider the financial implications such a move will have on your business and if your capital base can cover it comfortably. Starting a reward program without considering these important factors can lead to bankruptcy or a sudden stop which can greatly offend customers who love gifts and freebies. The type of business one runs also greatly influences the decision of whether to develop a reward system or not. A business which does not have many walk-in clients on a frequent basis may be better off without a reward system because it may be uncalled for.

Considering what you want to offer your clients as rewards is also very crucial. A grocery store for instance cannot offer all expenses paid trips to shoppers because it just does not make economic sense to do so. An airline on the other hand cannot offer confectionery because it will create an enormous disparity between what the clients spend and the value the company attaches to them. The advice of a marketing strategist might therefore come in quite handy when designing a reward system. Logs can be used to start small by first recognizing the efforts of most frequent customers. Logs can also help you draw out patterns of what you expect the consumers to spend over specified periods of time. This is how many companies decide on how much they can actually spend on their rewards system. The most important thing to remember however is that rewards greatly appeal to customers.

by: Lachlan Reinhold

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