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BBB Business Tip: 5 ways to create a reward program for loyal customers

By Better Business Bureau. July 24, 2023.

(Getty)

When you have a good customer loyalty program in place, you can generate a lot of recurring revenue for your business.

Here are a few facts that might help you understand a bit better why it is so vital to ensure you’re keeping your existing customers happy:

Aims of a reward program

Creating a need for participation

Your customers should enjoy participating in your loyalty program. You should make the process of earning points and reaching the next tier an exciting and engaging experience for your customers. If your customers seek action instead of reward, congratulations, you have created an effective loyalty program.

To spark conversation

While a simple rewards program isn't going to have your customers bragging to their friends and family about it, offering something out of the ordinary will. Word-of-mouth marketing is vital to the growth of any successful rewards program.

Keep it in line with your brand

Your company’s loyalty program should be an extension of your brand. While a luxury retailer would have an upmarket loyalty program, a toy company would have a fun, less serious plan. You should ensure that your program's theme is aligned with your brand's identity to maximize effectiveness.

5 tips to ensure your reward program succeeds

1. Be creative with your scoring system

Point programs are among the most effective loyalty programs because they increase engagement. There are two brilliant ways to incorporate points into your program. The first is to give your currency a memorable name, and the second is to decide on an interesting visual representation of the points.

Another way to use points to make an ingenious reward program is by introducing a visual element. If you create a unique look for your currency, it will become more than just a number, boosting customer interest. When they can see the points, the experience will become more interactive, and interest in earning points will increase.

Be sure to keep it all consistent with the feel of your brand. Otherwise, you could end up alienating valuable customers

2. Be creative with how your customers can earn

A successful loyalty program will reward customers when they least expect it, not just when they purchase in your store or website. While rewarding customers when they make purchases is an effective means of creating positive reinforcement, it doesn't exactly create a memorable enough experience to set you apart from the crowd.

To create a memorable experience, consider offering customers rewards on their birthdays via email and a personalized birthday wish. This technique effectively surpasses customer expectations while creating a personalized experience. A surprise reward is even better than a birthday reward; emailing them out of nowhere with bonus points is sure to get people talking.

3. Allow customers to support a charity through your program

Most people love the idea of being able to give something back. That's why allowing members of your rewards program to support a charity with their points is a creative and socially conscious means of making your program stand out. Make sure it's a cause related to your product and services.

4. Give your customers a level or a status

Consider the idea of creating a VIP program with multiple tiers. It can be an incredibly effective way to engage customers with the brand and spend more money. When they reach the coveted VIP status, a physical card can perfectly symbolize the customer's dedication to the brand and get them talking with their family and friends.

5. A customer of the month award

Like implementing a customer status scheme, a customer of the month program helps people strive towards a common goal. At the end of the month, you showcase the customer who has earned the most points that month - it couldn't be simpler! This might not be suitable for certain industries, but it can be highly effective for some companies.

For more information

For more information to help your small business, check out the BBB business news feed and the BizHQ.

BBB Great West + Pacific contributed this article.