Marketers are constantly searching for new ways to attract and retain customers. Often, this involves using tried and true loyalty marketing methods. From offering discounts on popular items to “buy-one-get-one-free” sales, marketing professionals typically stick with what works. However, these approaches can be costly. If the boost in sales doesn’t make up for the lost revenue, the programs can hurt, rather than help, the company. A points-based customer loyalty program offers a compelling, yet cost-effective driver of sales for any business. How it works The concept of the program is simple. Every time a customer or employee completes a qualifying activity, they earn a specified number of points. They are able to easily track the number of points they have earned throughout their time as a customer of the business. The prospect of earning even more points draws them back in. Eventually, whenever the participant earns enough points, they can redeem them for a reward of some kind. This could include prepaid Visa cards, gift cards, digital rewards, goods, and services from the issuing organization. Other organizations may award participants in their points-based customer loyalty program bonus products. In addition to driving repeat sales, these programs also create new channels […]
Tag: Points Based
Benefits and Drawbacks of Points-Based Incentive Programs
Whether for health and wellness, loyalty, channel partners, market research, or something else, there are many ways to set up incentive programs. One of the more useful tools for incentive programs is issuing points as “virtual currency,” which allows participants to keep track of their earned benefits. Typically, users receive points for reaching preset benchmarks that reward them with a selection of different incentives, which can include: A well-structured program provides motivation while fostering long-term engagement and continued loyalty. These programs are also highly adaptable, no matter what industry your company operates in. Incentive point systems are a fantastic tool for market research, automotive, health, wellness, customer, employee, sales incentive programs, and more. However, there are disadvantages of points-based incentive programs that employers and business leaders should be aware of. Below are a few of the benefits and drawbacks to help guide those considering developing their own incentive program based on points. This type of incentive program is about much more than motivation. It can align with your company’s core goals. A well-designed incentive point system can deliver astounding results if your business wants to improve employee engagement, customer retention, revenue growth, or any other business metric. For example, your business […]
How to Use Incentives to Increase Your Net Promoter Score
A common metric for measuring customer loyalty and predicting business performance is the net promoter score. Many businesses are intimately familiar with this metric and work hard to get a good score. One way to improve your NPS is through the use of incentives. Let’s start with how to measure your NPS. The NPS is very simple and is based on having customers answer one question “How likely is it that you would recommend Business/Product?service to one of your friends or colleagues?” Customers are then asked to score the question between 1 and 10. After acquiring the data from your customers, you can group them into 3 different categories: To calculate your net promoter score, subtract the percentage of Detractors from the percentage of Promoters. To calculate your net promoter score, subtract the percentage of Detractors from the percentage of Promoters. For example, if you had 100 respondents and 25 were passive, 60 were promoters and 15 were detractors, your score would be 45. 60 – 15 = 45 Incentives can be helpful in both acquiring and raising your net promoter score. You can use incentives such as gift cards, prepaid visas, or digital rewards to encourage customers to give […]