While many reward programs offer benefits for ongoing purchasing, Lift & Shift encourages clients to focus the bulk of their program reward activity on sales growth.
Growth tiers are an effective way to drive increased purchasing as customers earn more rewards per dollar spent as they increase from tier to tier.
Example of growth-based rewards tiers
Using our client’s previous year sales data, we track variations in spending by both reward and non-reward customers. In aggregate, across many programs, we see that reward customer spending tends to dramatically out-pace non-reward-earning customers, with an average increase by reward earners of about 24% versus the previous year.
Example of year-over-year growth increases for reward members vs. non-members
With a reward structure primarily focused on purchase growth, program ROI is always excellent and the increased profit from the incremental purchases by reward members pays for the costs of the reward program many times over.