Making the Most of Customer Incentive Ideas in 2021
The year 2020 reiterated the unpredictability of the market, social and ecological concerns and their impact on businesses as well as customer behavior. From revenge shopping to conscious consumerism, we have seen it all and one thing is clear – customers will purchase and an incentive never hurt to influence their purchase behavior.
With smart customer incentive ideas, you can positively influence your customers and motivate them to spend their time and money on your brand, repeatedly, while simultaneously improving customer loyalty.
Here are 7 highly effective customer incentive ideas that you can adopt in your business practices.
- Experiential Rewards – Rewards that are centered around experiences rather than on items are called experiential rewards. Almost 97% of the rewards or loyalty programs rely on transactional rewards or customer incentive ideas that reward customers with palpable goods. Experiential rewards break the monotony and have a higher recall value because of the sheer impact they have on the customer’s psyche. There is a wide scope to choose from as well. Experiential rewards can vary from weekend getaways, tickets to amusement parks, staycation vouchers, dinner date,s etc.
- Aspirational Rewards – According to a loyalty study, “74% of customers are loyal to a brand if they have something to aspire for”. Just like experiential rewards, aspirational rewards are non-tangible rewards that give customers something to aspire to. For example, you could give away a luxury item like a car to top tier-members after they have accumulated a certain number of points. Aspirational rewards encourage first-tier and even non-members to aspire and work towards earning the luxurious reward.
- Exclusive Events – Hosting exclusive luncheons, events, game nights, masterclass or workshops can help in building a community of loyal customers. Access to events like these can make customers feel exclusive and create a sense of belonging and also strengthen the customer-brand relationships.
- Privileges – Offering privileged access like special perks or benefits is also a great way of creating a sense on inclusivity in an exclusive group. Making customers feel special gives an additional motive to earn more points, and become an exclusive member. Club it with special events and the efficacy is increased significantly.
- Customer Appreciation Week or Month- A great way to reward customers could be to show appreciation by offering them discounts throughout their birthday/anniversary months. You could also host appreciation week or month during your brand’s anniversary. These customer incentive ideas are extremely popular in attracting shoppers and have a direct impact on sales and revenue.
- Stand up for a Cause – Customers want to feel good about their purchases and rewards that ‘make a difference’ reiterate this fact. Standing up for a cause or joining hands with a charity can help you to project a socially responsible image. It will also help to increase the ‘feel good’ factor among customers.
For What Activities Can You Incentivize Your Customers
- Purchase Patterns – A common way to incentivize your customers is by rewarding them points for their purchases. Earning points for every purchase, encourages customers to shop more, accumulate more points and then later burn/ redeem them to earn rewards. The points system or the earn and burn system usually works best when you reward customers for their purchases.
- Referrals – Getting new customers and clients on board is worth a reward or incentive, wouldn’t you agree? Rewarding referrers for bringing in new customers can positively influence both- the existing customer as well as the newly acquired one. Existing customers are encouraged to bring in new customers and newly acquired customers are impressed by the generosity of the gesture.
- Social Sharing – Creating a strong social media presence is of utmost importance, especially in today’s day and age. Encouraging customers to create authentic and organic user-generated content can help you broaden your reach and create an inimitable brand image on social media. You could reward customers for creating any sort of content for you; be it videos, podcasts, reviews etc. You could also incentivize customers that regularly engage with you on social media and those that actively share your content.
- Active Participation – Engagement is everything. An engaged customer is a retained customer. Rewarding customers for active engagement is a good practice that will further help in strengthening customer -brand equation. Engaged customers can help in positively influencing their network of family and friends and aid in creating a strong brand following.
While focusing on your rewards program will help you maximize your profits, it is imperative to keep a few things in mind. Listed below are important things you must remember while planning and executing your rewards program.
- Gamify – Make your loyalty programs exciting, implement gamification elements in your customer incentive ideas or programs and induce a healthy dose of competition. Boost engagement by creating levels and tiers and acknowledge high-performing customers on leaderboards. To know how you could incorporate gamification in your loyalty or rewards programs, click here.
- Surprise and Delight – Age-old, tried and tested method of surprise and delight still works and efficiently too! Occasionally surprise your customers on special occasions and even otherwise. A random gift or an exclusive discount will keep customers engaged, improve customer satisfaction and improve loyalty among customers.
- Holistic Customer Experience – It is not only about rewarding customers it is about improving customer experience. Focus on creating a holistic customer experience which is a combination of pre-sale and post-sales service, the reward or incentive program will further elevate the customer experience.
- Keep the Customers in the Loop – Creating a customer feedback loop is also a great way to improve customer experience. When you hear your customers out, work on their feedback, letting them know that you have resolved the issue is a very important step that most brands miss. Creating a customer feedback loop, makes customers feel heard and important. It improves customer engagement and develops a ‘more-than-just-a-transactional’ relationship between the brand and the customer.
- Aim to Build a Community – Always, always strive to build a community. Brands like Nike, Apple and NFL focus on creating a community. You strive to create a sense of belonging among your followers and brand loyalty will develop, organically.
How Can Annex Cloud Help?
If you are thinking about unique and trending customer incentive ideas, you will need the technological prowess, experience and expertise of Annex Cloud. With our Loyalty Experience Platform, you can design bespoke programs and even gauge the effectiveness of your program. To know more, about how Annex Cloud can help you click here.