Businesses aim on facilitating frequent purchases to secure greater engagement. Those brands, which incorporate repeated buying and selling of products or services, primarily need to focus on differentiating their business from other similar competitors.
Points reward program motivates its members to exclusively purchase from your brand, because of high standards of the perceived value. The value is determined by the worth of incentives offered, which in this particular case is “Points”, more like a shopping currency, that unlocks a world of perks, benefits and profits for the customers. Motivating your customers to enroll themselves for the Points Reward Program creates a convenient channel for customers to directly convey, engage and interact with the brand, while the brand analyzes and records imperative customer data to keep enticing customers with desired incentives.
Points Reward Program gives customers the motivation to climb higher in the rewards ladder, due to its very lucrative and engaging point structure, where value of the incentives persistently increase, with increasing levels.
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Benefits of Points Reward Program
A points reward program can effectively aid in the building of a loyal customer base. The more customers buy from your brand, the greater are their chances to be rewarded with points. Here are some benefits that can be exclusively drawn only by implementing a Points Reward Program:
- Points Reward Program helps in the effective retention of customers. It is easier to know what kind of rewards will easily entice repeated customers to stay, as the business has already made progress in collecting significant details, data and insights on an existing customer’s purchasing behavior. Hence creating a points reward program exclusively for your current customer base is considered an extremely cost effective choice.
- The implementation of an effective Points Reward Program can work wonders by attracting new customers to the business. This basically works in two ways, the first one being, when your new customers make a purchase that grants them a reward, your business can store and record their contact details to connect with them later and persuade them to make greater purchases of increasing value. The second way is simply through referral marketing, whereby customers who got rewarded and are gradually climbing up the point ladder can refer your business to familiar people and friends, which will certainly bring new leads to the business and help your brand establish a solid image.
- A points reward program works brilliantly towards increasing customer loyalty, as it can successfully convert first time buyers into loyal brand advocates. Granting points for individual purchases, make customers repeatedly come over for even smaller requirements, to get their hands on valued incentives. A personalized Points Reward Program makes customers feel valued, important and closely observed, which helps develop a stronger emotional bond directly with the brand.
- Your brand has already gained the trust of loyal customers, hence as Points Reward Program boost loyalty and effectively increase retention, it also inevitably boosts your revenue. Since loyal customers favor your brand over other alternatives available in the market, they are more likely to spend more and purchase costlier products from your brand, and this helps in drawing maximum revenue with profit.
- Points reward programs positively impact the important marketing metrics, specifically CLV( Customer Lifetime Value). Customer Lifetime Value is the total amount of profit that individual customers help the business make throughout the buyer’s lifecycle as a customer. As point rewards programs motivate customers to buy more frequently and spend more money on purchases that bring them closer to gifts of greater worth, the lifetime value of every individual customer keeps on spontaneously increasing.
Brands that have the best Point Reward Program
- DSW– DSW is a US based brand that sells designer and branded shoes along with fashion accessories. This brand has effectively mastered a traditional loyalty program that follows a points reward structure and grants points to customers with every purchase they make. This multi-structured reward program gifts customers with points that can be later used to redeem more rewards, as customers climb up the tiers to reach a level where the benefits drawn are maximum and the most enticing. But the factor that makes DSW’s point reward program an absolute success is due to its excellent personalization schemes, that glues customers to the business and at the same time gives brands access to extensive customer data.
- Sephora Beauty Insider– This multinational retailer of exclusive personal care and beauty products has a point based reward program that is wildly famous. This program’s convenience and popularity has attracted over 17 million loyal members, which successfully contributes to over 80% of the brand’s annual sales now. But what very few people are aware of, this gigantic beauty retail store grants rewards for each purchase based on an unconventional point system. The most creative step taken over here is, the brand gives complete control to its customers to decide how they want to utilize their reward points. The member of the Beauty Insider Program gets the exclusive advantage of using their point rewards to redeem discounts and prize vouchers to buy products priced higher at a considerable rate. The loyal members can also use the rewards to buy exclusive limited edition products or get early access to a product before it even hits the market. Customers who have collected a certain amount of points are also eligible for in-store beauty tutorials.
- Starbucks- It is common for almost every brand now, big or small to introduce a loyalty app, that facilitates and makes the entire shopping experience seamless. But when Starbucks launched their Loyalty Program App, they were the first ones to convert a mere experiment into a massive success. Operating the Points Reward oriented Loyalty Program through the mobile app, makes it radically easier for customers to sign themselves in and stay connected to the business always, without forgetting credentials or losing a punch card. The brand has efficiently increased their engagement in the Starbucks Loyalty Program App by making it mandatory for customers to make purchases and pay with the app in order to get reward points. By centralizing customer transactions, this American multinational chain of coffee houses have got access to vital customer data to analyze their behavior and purchases. By enabling a capable point of sale system structure, Starbucks successfully gathers crucial customer insights to grant more relevant and useful rewards to customers that motivates maximum customers to stay in the business for the longest span of time and be loyal brand advocates.
For over 10 years, Annex Cloud has been the worldwide leader in technology and service solutions that transform customer loyalty experiences for organizations, extending valued customer engagements, ultimately making beloved brands. Powered by the comprehensive and scalable Loyalty Experience Manager™ solution suite, Annex Cloud customers capture and use zero and first party data to seamlessly deliver hyper-personalized experiences across the entire customer journey – from awareness to purchase to retention, loyalty and advocacy. The company is recognized by industry respected organizations like Gartner and Forrester and integrates with over 100 market-leading technologies. Get in touch with us today!