Three Inexpensive Reward Strategies Industry Giants are Using; What are You Doing to Compete?
“Small business owners cannot afford to get left behind while other operations focus on the power of positive reinforcement through reward programs. “
Let’s talk reward programs, our last blog post discussed the importance of rewarding your repeat customers. This week we’re going to discuss three effective and inexpensive ways your small business can reward customers and grow your business.
When we first think about reward programs our minds automatically go to the food or hospitality industry, think Starbucks or Marriott rewards. It might also surprise you to know that even the cannabis industry promotes rewards programs for their medical dispensaries. Dermatology has even joined in with Alle Rewards.
Small business owners cannot afford to get left behind while other operations focus on the power of positive reinforcement through reward programs. Consumers love supporting small businesses, but they’re also trying to stay within their budget as the holidays approach. What are you doing to make them feel like they’re getting something back? Here are three small but effective ways you can reward your consumers and leave a lasting impression.
Birthday Rewards
Customers are more likely to purchase something the longer they are browsing. It’s often the reason online pick up orders are placed in the back of the store, why the checkout line is flanked by enticing smaller priced items and sales are often in store only. How does this relate to birthday rewards? Gifting a small item in a customer’s birth month creates a need for the customer to visit the business. They are picking up their treat and, in the process, most consumers will browse and often purchase more than originally planned.
In the end, whether your birthday reward is in the form of a small discount, points added to their profile or a physical item, this creates a touch point in which you have a reason to remind the consumer about your small business and it’s to THEIR benefit.
Referring Friends
This simple reward accomplishes two things at once, gaining new purchases and providing positive reinforcement to repeat customers. This is most often seen via promo codes or affiliate links that allow a small business to know who to thank and reward for the new purchase. Most businesses offer rewards that are only redeemable at their business to reduce cost spent. This also dips into a topic we’ll discuss at length further, customer segmentation. Soon you’ll be able to identify your biggest fans and devise of greater ways of expanded your rewards program.
Newsletter Exclusive Promotions
This reward strategy works in two ways, providing positive reinforcement by signing up for the newsletter and continue to provide that positive reinforcement through exclusive rewards or promotions. According to Small Business Chronicle, an e-newsletter is one of the best and low cost ways to maintain a customer relationship that can be easily tailored to an audience that has already shown interest in your business.
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