Reward Point Systems Work

Are Reward Point Systems Right For Your Business?

The idea of "buy 10 get the 11th free" has been a key marketing strategy for Mom-and-Pop businesses in brick-and-mortar locations for years. Now, with ever-expanding and increasingly accessible technology, the idea of "reward points" is taking the Internet and small business world by storm.

If retaining existing customers is part of your marketing strategy, a loyalty or reward points program is a sure bet for obtaining repeat business and bolstering customer satisfaction.

Easy Tips for Setting Up a Reward Program:

So you've got a million and one ideas for a reward program, the terms, conditions, and logistics are driving you crazy? Here are some tips from some awesome small business owners for setting up a rewards point marketing strategy with ease.

1. Check if your existing e-commerce software already has a reward point feature. Here are some of the most popular e-commerce platforms and other software out there that already have this feature, in case you're looking to switch or open up a store:

• ZenCart.
• Reward Points.
• Iventa.

2. Standardize your reward program: for example, give a 10% discount with a coupon code like LOYALTY, and slip a business card in every online order or send the code via an e-mail autoresponder.

3. If you run a brick-and-mortar (say a coffee-shop), have a reward card "Rolodex" and keep customer's loyalty cards right there, so they never lose them. It actually increases sales as customers work toward that one free coffee!

4. Offer products rather than cash as your rewards, so you don't have to mess with money.

5. Limit the rewards to a few simple choices, which will be more cost-effective and easier to set up for you, and not too overwhelming for customers.

6. If you're using a "hole-punch" method, you can pick up a customized hole puncher at just about any craft, hobby, or office supply store.

Thank Customers Using a Reward Program:

Using a reward program is a great way to thank customers, and studies show that appreciation goes a long way. Specifically, a reward point system is beneficial because a customer can log in to their account or physically see the hole-punches on their card to get excited about the reward that is coming. Whatever your target market, just about every type of customer enjoys getting something for nothing.

Consider the Following for a Successful Reward Point System:

1. Make sure the free product has a low overall cost and is always in stock.

2. Set the number of purchases or purchase amount high enough that you're not giving a free product away every other visit.

3. At the same time, set the number of reward points needed to get something for free low enough that customers see it as a reasonable goal that won't require much or any additional spending.

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What's Next

Next In This Guide
Part 41:
Pay Per Click Advertising Tips - There's no faster way to get a high volume of customers clicking into your site than pay per click advertising, so learn the basics and get started.

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Part 39:
Boost Sales With Affiliate Marketing - If you want hundreds of people selling your products and only getting paid when they make sales then affiliate marketing is for you!

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