Having recently completed a couple of big trade shows, we are busy working with a number of prospective clients as they contemplate the addition of a customer reward program in 2015.
As part of the planning process, we work with clients to develop a well structured offer array, designed to entice their customers to change behavior in one way or another. We begin with a review of their various sales goals, talk about their product/service mix, associated price points and margins and then develop a reward offer matrix designed to address each sales objective.
One of the most common issues I encounter is companies who don’t develop an adequate reward offer mix; for any reward program to be successful, the target audience (i.e. the program users/members) need to see a reasonable level of reward attainability; if the program lacks ways for the user to earn rewards, they will not bother joining the program – or worse, they do join but then do not participate.
A well structured program will provide users with lots of ways and/or opportunities to earn the reward currency (points, miles, etc.) in question; companies who offer the reward program should always be asking themselves “would I bother doing this?” and if the answer is “no”, there is an issue. No one is going to join a reward program and be influenced by it if they do not see enough program reward value to justify their investment of time & energy; let’s face it, most people are far too busy.
Reward program operators should try and include all products and/or services in their reward program; ideally each product or service should have some sort of base offer associated with it (so the user understands that they always get “something”) and the company should make use of tactical bonus offers to help focus program users on certain products/services or behavior; bonus offers get the program participant excited about whatever the program operator is looking to sell more of or accomplish.
Program operators should get creative with their bonus offers and use them to address virtually any corporate goal:
New product launch? DOUBLE Rewards on the new item until a certain date.
Want larger transaction sizes? Earn BONUS rewards on any transaction over $x
Want to sell product bundles? Offer BONUS rewards on that bundle – for a limited time.
Want retail sales associates to understand the product better? Offer them rewards to watch your product video/demo and take a short quiz.
Want to keep your AR more current? Offer bonus rewards on invoices paid within 10 days (and stick to your guns).
Reward Program Attainability = Reward Program Impact & Results
By Graham Farrell – President, Lift & Shift Loyalty Programs