It is clear that by rewarding consumer loyalty, businesses can benefit from increased profits, and sustainable growth.
When the rewards on offer are perceived to be of high value, business can be retained but also referred, this is why 45% of businesses believe personalised offers are the future of incentive programmes.
The History of Reward Schemes
The likes of loyalty programmes have been around since early 1700, and have evolved throughout history to the digital, gamified mobile apps consumers use and love today. Despite their evolution that has been prompted by the likes of competition and tech, one defining characteristic has remained the same – the act of rewarding profitable consumer behaviour.
This is the reason the likes of Starbucks, Tesco and Boots have invested time and time again into their reward schemes, because it continues to prove its worth, despite its changing landscape! Yet although more and more businesses are joining the reward revolution, many programmes are falling short of being effective in their schemes.
Why Do Some Incentive Programmes Not Work?
Many companies are mistaking rewards with the likes of early access to sales, or one-off giveaways. Rewards have to be considered strategically, in order to accelerate the loyalty life cycle and promote consumers to purchase with the business every time, a rewards programme has to be ongoing.
In essence, consumers have to be continually educated of the rewards for their loyalty in order to keep them motivated.
What Does A Successful Reward Look Like?
To some extent, this is a trick question…
A reward that is perceived to be successful is different for every consumer, and this is where many businesses fail to connect and form a deeper relationship with their customers. Rewards should not be considered equally.
In short, customers who religiously spend more, or have been loyal to the company for an extended period should receive more attractive, thoughtful incentives. This is because they are the most profitable consumers, and hence this investment for the business is sustainable.
ROI is crucial here, rewards are substantial to these positive consumer attributes.
Although to clarify, it is not that new customers do not receive incentives, it is purely that rewards become more valuable as the relationship materialises between the business and consumer.
How Can My Business Promote Loyalty With Incentives?
At Prizeshark we are dedicated to organising, managing and fulfilling engaging incentives and exciting promotions. Through working with the likes of The Sun, Volvo and The Gadget Show we have first hand experience of how the right rewards can influence consumer behaviour tenfold.
We can apply this knowledge and experience to your business model. Whilst considering your customer base – and their individual wants and needs – we can source prizes that incorporate your brand’s mission whilst creating value for consumers.
We are a leading global agency with strategic partnerships for gift cards, premium brand merchandise & holidays – ensuring we have an industry leading range of rewards with competitive pricing . Invest your time and money wisely, choose Prizeshark to maximise your scheme’s performance.