One of the key ways for businesses to attract and keep customers is with attractive rewards. Many companies know the importance of giving customers extra value to help keep them satisfied but take the free or discount route. While discounts and freebies will work in the short-term, the majority of organisations would be better served with a dedicated reward scheme instead.
Why are rewards preferred by consumers?
When compared against discount schemes that simply offer a lower price, reward schemes are much preferred by consumers. Reward schemes are outperforming discount-based promotions across a whole range of categories as customers appreciate the more personal approach. The ability to connect and build a personal relationship with your target audience is what will help brands to grow moving forward. In a recent KPMG survey, 80% of customers were found to like the surprise deals or gifts this approach brings.
What makes a good reward scheme?
One of the headline facts around reward schemes is that the most popular are widely redeemable. This gives them a great flexibility and choice in where consumers can use the reward which is very appealing to them. It also shows that your brand is thinking about what is best for them and their needs.
Another point to note is that digital platforms lead the way. It has been shown that up to a third of customers prefer being able to access and use their rewards online. The reason behind this shift away from traditional reward programs is that actually having to physically use a membership card in person is not what consumers want now. Examples of popular digital rewards include products such as E-Cards and instant media downloads, which 33% of millennials prefer.
What is digital receipt validation?
A recent innovation in this area is digital receipt validation which enables consumers to redeem their rewards via online validation of their receipt from a purchase. While great for consumers, it is also a superb digital marketing option for businesses too.
The instant gratification that customers get using this system means they will leave with a great brand impression and be more likely to return. This provides a great tool for companies to drive loyalty and create superb brand awareness with their core audience.
The power of rewards marketing is immense, with many consumers reacting better to this than traditional discount schemes. If you need help to implement any kind of marketing strategy in this or other areas, get in touch with Granby Marketing today.