Businesses without a benefits and incentive strategy are missing out on a huge opportunity.
Approximately 72% of people agree that, all things being equal, they would buy from a business with a ‘loyalty program’ over one without. And almost 70% purchase more frequently and spend more with brands with a program in place*. This makes incentive programs a no brainer for any business looking to improve frequency and gain a higher ATV.
Benefits and incentives programs, also known as Loyalty Programs, should be a series of interactions that are frictionless and valuable for both your business and the customer to create ongoing advocacy. Along the way, a clear and consistent strategy should be implemented to ensure ongoing value, engagement and return on investment.
Benefits and rewards programs can include points, status, rewards for purchase, additional benefits by tier, and exclusive products and services among some of the mechanics to promote the four key pillars of loyalty: Status, Access, Power and Stuff.
Rewarded for desirable behaviour
Increased value in purchasing from or engaging with the brand
Ongoing benefits from increasing status through desirable behaviour
Rewards and status benefits to use on purchases and services with the brand
A sense of belonging and feeling known by the brand
An ongoing mutually beneficial relationship with customers
Increased understanding of customer behaviours, psychographics and demographics of the most valuable customers
Increased retention, acquisition and engagement with customers
Ongoing purchasing through a reward for purchase program
Increased ability to influence purchasing with known customers
Additional reason for customers to create a profile and be known by the brand through an exchange of information for benefits.