In the business press, customer rewards have been derided as cheap advertising tactics, fads, and giving things away for nothing. However, even though they have been around for more than ten years, more businesses than ever are joining the bandwagon. Organisations invest millions of dollars establishing and implementing rewards programs, from airlines offering frequent traveler deals to telecommunications providers decreasing their costs to gain greater volume.
In reality, reward schemes are frequently misused and poorly understood. Too many businesses treat awards as transient promotional handouts or monthly specials when it comes to design and implementation. When used in this manner, PRMMS channel rewards can add value by encouraging both current and potential customers to try a certain good or service. However, they won’t provide anything close to their potential worth until they are made to encourage loyalty.
Only if it is conceived and implemented as a part of a bigger loyalty-management strategy can a rewards program shorten the loyalty life cycle and encourage first- or second-year customers to behave like a company’s most profitable ten-year customers. A business needs to figure out how to give customers value in proportion to the value that their loyalty brings in. Creating a system through which clients are continuously informed about the benefits of loyalty and inspired to acquire them must be the objective. A planned, long-term approach is necessary to build devoted customer relationships that last for years.
Ideas for B2B vs B2C loyalty programs rewards are included here:
- Free goods or samples– Free samples and items cost individuals significantly less than the market price, therefore their costs are lower than their perceived value, especially if they are a manufacturer. This kind of loyalty award could be reasonably priced. Given how much the clients enjoy their items, receiving additional parcels should make them happy. Offering products and samples from categories they use and enjoy would be the greatest strategy. A CRM system must be in place to keep track of consumer preferences.
- Access to discounts and promotions– Only participants in customer loyalty programs are eligible for discounts and promotions. a -15% discount on a particular product category or a BOGO deal. It’s a common practice for supermarkets to offer special discounts on certain items to customers who have loyalty or store credit cards.
- Points – As a reward for a loyalty program, people may award points or other forms of payment. Depending on what people decide to include in their product catalogue, those points could be converted into cash, goods, discounts, or any other perks. If their loyalty program has tiers, points are a terrific reward to include. Consumers, who have a higher level of loyalty, can provide a bigger multiplier of points.
- Physical rewards – In addition to their goods and services, they may also provide other goods or services, such as a trip to Hawaii, flip-flops, sunglasses, or partner products. The decision here is based on the kind of company and the services they offer.
Anyone who has tried to convince a company to put customer loyalty at the forefront and create and manage a successful Business Reward Solution program is already aware of the difficulties. Each functional area has a unique perspective on loyalty and is likely to advocate for its own set of remedies. Additionally, because the idea of customer loyalty is still relatively new to many businesses, many managers tend to implement their new programs with tried-and-true assessment techniques and incentives. Additionally, many businesses place a high value on expansion, which can lead to a focus on attracting new clients at the price of keeping old ones or cultivating loyalty.