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17 May 2022

The Do’s and Don’ts of a Great Customer Rewards Program

Rewards programs, or loyalty programs as they’re often called, can help with attracting and retaining your customers. They can offer an incentive to new, potential customers that make them more likely to shop with you over a competitor. They can also help strengthen your customer loyalty and retention. In fact, 79% of consumers agree that a loyalty program makes them more likely to continue doing business with a brand.

However, while a ‘buy 5, get your 6th free’ coffee stamp card may be easy to implement, a holistic digital rewards program has more details to consider. First and foremost, your customers’ experiences should be the top priority when creating a loyalty program, because without them your brand is nothing.

The Do’s of a Great Rewards Program

  • Keep up-to-date with customers’ changing preferences, expectations, and behaviours when it comes to their experience with you. You may launch a kick-ass program, but if you don’t continually work on improving it as consumers change then it could fast fall behind your competitors.
  • Personalise your customers’ experiences as much as possible by sharing the right message, at the right time, and in the right place. When personalization is done well, there can be a 6.4x lift in member satisfaction with the rewards program.
  • Consider ways of recognising your VIP customers above and beyond your general customers. Think about how much those particularly loyal customers are worth to you and reward them accordingly!
  • Have a clear, consistent privacy policy and provide meaningful controls to the consumer to choose what is and isn’t tracked. This includes details about what information is recorded, why it’s recorded, how it will be used, and how someone can request for their data to be erased.
  • Have clear, consistent terms and conditions for use. If a customer is misled about what to expect from your rewards program it will create negative experiences that may result in them cancelling their membership and sharing details of their experience with friends and family or online.
  • Provide prominent and advanced notice if points or cashback are about to expire, so consumers have plenty of time to take action. The worst thing about being a customer that has worked to build up points is then having those points taken away without sufficient notice.

The Don’ts of a Great Rewards Program

  • Don’t make the initial signup process too complicated or demanding. There are always other chances to get key information from your customers; asking for too much too soon is likely to turn potential customers away for good, as is making it difficult to sign up in the first place.
  • Don’t mislead consumers about how they earn, maintain, and redeem points, rewards, or cashback. Helping them understand the process will not only help decrease the likelihood of having disgruntled consumers but also mean they’re more likely to actually use your rewards program.
  • Don’t preselect consent checkboxes. Any checkbox that is representing someone consenting to something, whether it’s receiving communications, allowing cookie tracking, or anything else, must be deselected and require express consent – ie. someone specifically clicking yes.

Whatever type of loyalty program you’re looking to implement, we can help you do it. With a fully customisable and white-labelled platform, we’re able to work with you to develop a program that’s right for you and your clients.

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