There are numerous rewards marketing schemes out there, each one has its little twist. The value centric scheme we use has proven to be really valuable to our business. Here is our experience summarised in 10 bullet points:
1. The program must benefit both buyer and seller
For anything to work, there must be a clear value proposition to all stakeholders. The consumer needs to be attracted to the scheme and must find instant benefit and satisfaction. Throughout the article, we focus on the business benefit instead assuming customers love the scheme.
2. The true benefit is repeat business
The true benefit of any scheme, indeed, of any marketing effort, is an increase in customer affinity. Simply put, this means repeat custom over time. The scheme needs to be central to repeat business and must be designed for this.
3. The marketing cost of attracting a new customer is known
A rewards marketing program is transparent, meaning the cost of attracting every single customer, every time the scheme is applied, is known. Contrast this to the blunderbuss approach of traditional marketing. Any business could be spending large sums on advertising in all its different formats, but it still would not know the advertising success rate in attracting new customers.
4. Marketing spend is reduced as this is direct and targeted to scheme members
Rewards marketing programs allow you to target different segments of your audience, be it the ones who are super loyal, the ones who are losing interest, and the ones who have yet to discover you. Instead of throwing out a general promotional discount, or adverts aimed at your audience as a whole, reduce your costs and increase your accuracy using your rewards program to target the individuals with the right messages (offers) tailored to them.
5. Rewards programs benefit all businesses no matter the size
Scheme participation gives visibility and access to all businesses, big or small. Using the scheme wisely, and incorporating this in promotions is a great way of getting into the mindset of consumers. Whether you’re a small café trying to earn new clients or a large franchise restaurant trying to retain clients- rewards programs can help you achieve your goals.
6. The scheme should be central to your digital marketing
The pandemic has reinforced consumer use of the internet command, mainly through smartphones. Gone are the days of carrying a ton of loyalty cards. The smartphone is a true personal assistant to the consumer, enabling everything from online shopping, deliveries, communications, news, and much more. Therefore digital marketing places the scheme at the heart of the consumer’s personal life.
7. Know your customers intimately
As customers join the scheme, more information is gathered and shared. Contrast this to an over-the-counter sale where information exchange is one sided, that is from the business to the customer. The potential of being able to speak to your customers directly as valued people is the true hallmark of loyalty.
8. Reactivate customers you have not seen in some time.
The beauty of knowing your customers intimately is the ability to re-activate them with items or services of interest in seeking repeat business. This is only possible if you know who your customers are and if you are actively and intelligently pursuing them, offering them value as time goes by.
9. Use the scheme to promote select products and services.
Knowing your customer means knowing the tastes and preferences of a select market segment. This gives businesses the confidence of being able to target this segment with select or exclusive products. Anything is possible, for example, testing a new product range, specials, repackaging existing products that matches the personality of the select group and so much more. It really is up to your imagination and experience.
10. Add value to your price comparability
With price comparability comes price competition. This is especially so the more saturated your industry is. If you are a hairdresser in a city where competition is high, you may find yourself having difficulty differentiating yourself from others, especially when it comes to price. A rewards scheme adds value to your price, that value changes how people see your pricing and how they compare you to your competition.
One final word, a rewards scheme isn’t about the card, the app, or the point system. Instead, it is about the organisation managing the scheme in partnership with you. The company should have the marketing experience and the business analytical skills to help you plan your strategy and tactics that give your business the edge.
We are capable of doing all this and more! If you wish to get in touch with us click here!