A points-based loyalty program awards participants points for defined actions, redeemable against a reward catalog. Points sustain engagement across repeated interactions better than one-off rewards, but they create an accounting liability and require redemption infrastructure most point tools lack. 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 […]
Read More… from Pros and Cons of Implementing a Points-Based Loyalty Program