What is Reward Marketing? How it increases customer loyalty & retention.

What is Reward Marketing? How it increases customer loyalty & retention.

Customer reward programs in marketing are point-based loyalty programs that offer discounts and other incentives (gift cards, vouchers, coupons, cashback, or free or discounted products or services…) in exchange for increased customer involvement and purchase.

Rewards Marketing can help you :

  • Build connection
  • Increase customer loyalty
  • Drive engagement and
  • Attract new customers

 In Reward marketing works we don’t have to look very far behind, to find the evidence. A recent study found that 82.4% of customers shop more from stores with some form of reward program.

Types of Reward Marketing

Reward programs have been around for centuries. You can employ customer reward programs to brand awareness, boost engagement, and purchase frequency from your customer base, from the early “buy two, get one free” punch-card programs to the multi-tiered VIP and everything in between.

Here are some types of Reward Marketing :

1. Point-based system

This is a kind of reward program that lets customers collect points that can be redeemed on various products. Many e-commerce businesses struggling to get customers in the effective door might find a solution in this loyalty program. There are so many ways the customer can earn such points. For example – grievance compensation, social sharing, emails, or any other actions you take to drive traffic to your site.

2. Cashback Reward program 

The cashback reward program is a very effective yet addictive formula to gain attraction from customers, with every order or purchase a customer makes, they earn a small amount back. Cashback offers are popular because it works instantly, which impresses a customer and forces a customer to visit again.

Bingage provides a cashback reward program which leads to a positive impact on customers as cashback rewards are mostly liked by the customers.

3. VIP Tier Reward program

It is a super excellent tool for maintaining brand loyalty for VIP customers. It’s generally in the form of a voucher, discount, gift card,  freebie, or special customer treatment for the customers who are spending well in your business with good purchasing frequency.

4. Referral program

In Referral program, you reward your happy customer for successfully referring their friends to the store. For example, Some brands give cash-back or discount offers to customers who refer your app to their friends. Referral Rewards are the best way to increase sales because it not only generates new leads but also retain older customers by rewarding them with different offers.

5. Contest Rewards: 

Reward Contests are designed to fulfil the customer’s need to win. There is no fun and a win is of no use if there is no reward. In such cases, the reward is also something that gains interest and motivates customers to enter the contest.  This is a useful and beneficial tool for retaining customers who are already part of your target base.

6. Product reviews

Customers can rate and comment on products they have purchased on the product page. Other consumers can check reviews when making a purchase decision. However, nudging customers to share their positive feedback is not easy. The e-commerce sector commonly uses this kind of reward marketing.

Benefits of Reward Marketing:

1. Build customer loyalty

Reward Marketing can help build customer loyalty to make your present customers feel good about supporting your brand. You’re revealing your appreciation for their business by thanking them for their purchases. Customers have that feeling as if they are saving money as a result of rewards, making them more likely to continue to support your business.

2. Improve brand reputation

You can target people who shop to save money and show them how much you appreciate their support. Creating a client reward program that offers attractive offers and rewards can help you boost your brand’s image

3. Gain new customers

Reward marketing can help you gain new customers, Many companies and their employee’s referral programs persuade their consumers to recommend them to their friends and relatives. For each person they suggest for coming to us, current customers receive a special offer, and new customers receive a special offer as well.

4. Create better analytics

Reward programs can help you analyze your customer base and allow you to personalize the customer experience. Real-time data will help you understand your customer needs and what you should target to make it better.

Conclusion:

A customer reward program is the best strategy to convert your new customers to repeat customers. By offering different discounts and incentives you can grab your customer which leads to involvement and growth of your business.

If you want to start a Customer Reward program in a restaurant. START NOW with Bingage. Give cash back rewards, build customer loyalty, improve your brand reputation and boost sales.

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