The content is accurate at the time of publication and is subject to change.

Research: Starting a retail rewards program - Credit-Land.com

If you are losing your sleep thinking about how to increase the number of loyal customers in your retail store, starting a retail rewards program can prove to be extremely beneficial. A retail reward program is a plan in which customer is awarded rewards on shopping consistently from a single retail store. The range of rewards that a customer gets may range from cash prizes, complimentary services and products or purchase discounts. The following tips should be kept in mind while establishing a retail rewards program:

The design of retail rewards

First and foremost, you need to finalize about the pattern of your retail rewards program. Retail reward programs can be based upon numerous numbers of things. The customer can be rewarded on a specific number of visits in the retail store, or the customer can be rewarded on purchasing items up to a certain amount. The basic framework on which rewards will be given needs to be planned out. You need to have at least 4 to 5 such plans in your mind before you finalize on a single plan. Discuss the plans you thought about with your managers and financial advisors. And then take the final decision.

Reward Tiers

You need to determine whether your reward programs will have specific tiers or not. The tiers can be used to lure the customers. In such tiers the customer will get 10% discount on purchasing items up to a certain limit. On purchasing up to the next purchase limit the customer gets a discount of 15% or a complimentary gift item. On purchasing up to the next purchase discount the customer gets an even more attractive discount. The award can be something like a gift card which is the main reward. The main reward needs to be made lucrative enough so that the customers want to get that respective gift and purchase more for that.

Finalizing your reward programs

After you have discussed adequately with your financial advisors and store managers, you should finalize on the type of reward program you want to stick with. You need to do in-depth research before you can narrow down one particular plan. You may conduct a survey among strangers as well to get hold of their likes and dislikes. Once you have finalized your reward program, you need to create a business wide memo, which will contain the details of the reward plan.

Purchasing the required items

You need to buy the required things that are needed to carry out your reward plan. Keep it simple by allotting business cards to all the customers, you need to ensure that the business cards you distribute among your customers are stamped. You may also arrange for a different kind of reward program.

Advertising your reward program

The reward program that you have started needs to be well advertised so that the customers get to know about the program. You can use radio or in store signs for advertisement. The store employees should be educated accordingly to ensure they are well equipped.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.