What is member rewards ?
A member rewards program is a business strategy to increase business by offering incentives such as discounts and promotions for regular customers. Member rewards is a strategy to increase business through the use of incentives. Member rewards programs provide an incentive to join and an incentive to stay. Member rewards programs are most effective when the rewards are exclusive to the customer and the customer is not able to find the rewards elsewhere.
How to Get the Most Out of Your Member Rewards Program
How To Get The Most Out Of Your Member Rewards Program
Getting customers engaged in a member rewards program can be improved with a few small details. Here are some steps to take to get the most out of a loyalty program-
1. Reminder Emails
People get busy and can use a little nudge to remind them they have unspent points. An email reminder is the easiest way to do this. Emails that tell customers the amount of points they have to spend are an effective way to get customer engaged in purchasing again.
2. Make Your Program Visible
Promoting a rewards program is just as important as establishing one in the first place. This process will be different for each business and the type of program they have. In most cases, visibility on in areas where the customer will see it is the best path to follow. This can mean website pages, social media, or even on the bottom of receipts.
3. Increase the Speed in Which Customers Earn Rewards
If a rewards program becomes too complicated, it can have adverse affects like customers dropping out of the program. Instead, it should be easy for customers to see that they are racking up points with each purchase and moving towards the rewards that offer them the most value.
A few ways to do that are-
- Double points per dollar spent
- Decrease points needed per reward
- Run a bonus points campaign for existing members
- Give new customers creative ways to earn points
- Following your social media pages
- Sharing Facebook and Twitter posts
- Leaving product/service reviews
- Birthday rewards
- Referring a friend
Get To Know Your Member Rewards Program
Member programs each have different rules that suggest when rewards can be redeemed. The average American carries more than one credit card and each offer different rewards options. However, maintaining an understanding of how they work comes down to the different types of credit card used for Customer Loyalty programs-
Cash back rewards are a popular option for customers. They work by letting card holders earn a percentage based on their total spending or where they spend with the card. Other cash back cards work by accumulating points that are later converted into a dollar amount.
Another popular reward option is earning points on purchases. These points often run in tier systems or levels. The higher the level, the bigger the reward. For example, the Chase bank card offers both Sapphire Preferred Card and Ultimate Rewards points.
Airline miles are usually exclusive to airline programs or credit cards that are in conjunction with airlines. They offer miles per flight purchased. Once those miles are accumulated they can be redeemed for free flights, hotel stays, car rentals and more.
Reward values will vary by card. Cash-back cards are often straightforward with their terms while point systems can be based on points every purchase.
Find Out How Many Member Rewards Points You Need
Managing reward points for multiple cards can be confusing. To make rewards programs easier to understand keep the basic rules in mind. If the same issuer runs more than one card this can cut down on the confusion. Otherwise, there should be clear instructions on how to redeem rewards upon signing up.
Sometimes rewards can be swapped or mixed between cards like a balance transfer. But if there is a mix of points earned, cash back and miles from different cards they won't be able to be combined. Instead, redeem rewards for each card individually. For instance, cash back or credit rewards can be used to offset a bill and then gift points can be used for other purchases.
Think Outside The Box
Over 70% of consumers have stated they don't feel loyal to any one brand. In order to develop brand loyalty the member rewards programs need to strike an emotional chord with the customer.
A strategic loyalty program must be designed by thinking outside the box. Ask what value the program adds for customers. Would it be beneficial to team up with a company to offer joint rewards?
An example of a strategic joint loyalty program is the merging of Hilton Hotels and Lyft. Or the partnership of Dunkin and Shell. They work together to produce offers that complement their services. Rides to hotels are an almost obvious partnership.
Keeping trends in mind will also offset the curve and help businesses step out in front with strategies designed to capitalize on current issues. Charitable causes are one avenue to look into in that respect.
Look for Deals
Most customers seek out rewards programs to find deals on purchases or to save money through cash back options. The more deals that are offered, the more likely a customer is to sign up to a rewards program.
When looking for deals, the customer often scours the Internet for coupon codes or weekly ads. This is especially true around holidays or special events. The best time to find deals, and thus the best time to offer them, are the beginning of each season.
For example, retailers often begin a winter clothing sale at the beginning of summer. This way customers see an opportunity to stock up on great deals while the store can move merchandise before their new line of winter clothing comes in. The end of the year sees the same strategy in place especially with car dealerships. The stock for the new year will be coming in and they want to garner as much space as possible by moving out older cars.
Keep A List Of What You Want To Buy
Purchase lists can be find in every home and on every smartphone. Customers will create lists based on what they want to purchase and what they need to have. These lists dictate their spending habits.
A simple way for businesses to get inside the head of their consumers is to ask them what is on their lists. Knowing this information helps both the consumer and the business. As the needs of the customer are met the business sees them returning for future purchases. Understanding their wants and needs is a big step in delivering quality customer experiences.
Save Up For a Big Expense
A goal without a plan is just a wish. Saving for a major purchase is planning in action. Knowing how much is needed towards a big purchase is the first step in saving money and establishing a timeline towards its attainment.
The second step is knowing how to earn more money to reach that goal faster. Using a member rewards program can help to save dollars through cash back options of redeeming rewards for purchases. These are incentives businesses can highlight when establishing member rewards program.
Why a Solid Member Rewards Program Matters To Customers
Customer Loyalty programs are very popular among businesses and consumers. But if they are complicated to use they won't offer the same value. To stand out from similar businesses it's important to have a solid member rewards program that is easy to use and entices the customer to remain brand loyal.
Here are five consideration for an effective members reward program-
- Easy enrollment
- Meet customer needs
- Have excellent customer support
- Maintain momentum
- Reward top customers
Member Rewards Program Ideas: 1) Make it easy for customers to enroll.
2) Give customers what they want.
3) Support your customers.
4) Keep up the momentum.
5) Reward your best customers.