How to Define Your Reward to Selective Customers


Aug 12, 2021 • 6 min read

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Rewarding programs are undoubtedly crucial to businesses. With over 92% of customers agreeing that rewards influence their purchase decision, it’s about time that your business starts to consider a rewarding program.

There are so many types of rewarding programs you can implement for customers. What rewarding program is the most relevant and effective to keep customers loyal? Let us learn how to define your rewards to selective customers!

Over 92% of customers agree that rewards influence their purchase decision.

Rewarding program

A rewarding program is a program that gives gifts or rewards to customers who sign up and fulfill certain conditions. These conditions can range from making a purchase or participating in businesses’ engagement activities. There are many types of rewarding programs that you can adjust to your business ecosystem.

Types of rewarding programs

  1. Points programs

    Points programs have long been applied by businesses due to their simplicity. Customers gain points for fulfilling certain conditions. The points can be accumulated and redeemed into many reward selections such as free items, vouchers, merchandise, or other rewards. Here are some activities customers may fulfill to gain points:

    -Signing up on the rewarding program
    -Making a purchase
    -Following and sharing a social media post
    -Signing up for newsletter
    -Posting reviews
    -Filling surveys

    As you can see, points are not always given only during moments of purchase. This is because the main goal of rewarding programs is establishing a constant relationship or engagement where customers keep interacting and become more loyal to a business in exchange for rewards.
  2. Tiered rewards programs

    Tiered rewards programs can be combined with points programs, With tiered rewards programs, customers reach a certain level or tier after successfully gaining a certain number of points. There are some levels customers can go for, such as the bronze, silver, gold, and diamond level. Each level has different rewards. For example, those on higher levels unlock higher discounts, double points, early access to new products, and many more. Tiered rewards programs are effective as they trigger customers’ competitive side and urge them to participate to move up the tiers, making them more active and engaged with your business.
  3. Referral programs

    Referral programs are a type of rewarding program that gives you the extra benefit of gaining new customers. Customers can refer a friend to join the program and they both gain rewards such as points or discounts on the next purchase. Because of this simple concept, this type of rewarding program can also be combined with the former 2 programs to make it more interesting.

Defining the right rewards for customers

Every rewarding program offers various rewards that you can give, along with their own strong points. Here are some reward types you can choose from.

  1. Discount vouchers

    Discount vouchers or coupons are highly effective in making customers come back because they love anything that helps them save up. At the same time, you guarantee customers’ return. To determine the value of your voucher, make sure you choose a value that doesn’t compromise too much with your margins while still being attractive for customers.
  2. Free items

    Free items are another type of rewards that customers know well. After gaining a certain number of points, they can exchange them for 1 free item. This reward will be more interesting if you choose the most preferred products as the free items to get them more excited to participate.
  3. Merchandise

    If your business has a unique branding or mascot, you can go for this reward type for your customers. You can create many types of merchandise such as eating/drinking utensils, bags, pins, and many more.
  4. Third-party rewards

    Another reward type you can go for in your rewarding program is third-party rewards, or rewards from other relevant businesses that are different from you. For example, you can give shopping vouchers or coupons from certain supermarkets, travel vouchers, or other types.

Managing rewards effectively with coupon management

After choosing the rewards for your customers, it’s also important to monitor the overall distribution and usage of rewards. If not, it will be hard to measure the success of your rewarding program and whether it is attractive enough for customers. If you give rewards in the form of vouchers and coupons, you can use a coupon management system to optimize your rewarding program.

What are the important features of a coupon management system for businesses?

  1. Generate rewards

    The main function of a coupon management system is to generate coupons or rewards. Coupon management lets you set the value or percentage of rewards for customers. You can adjust this to different customers, such as new, loyal, or inactive customers. Don’t forget to jot down a clear expiry date. If the expiry date is too long, customers will lose interest or even forget they have those rewards. Use a shorter expiry date to induce FOMO in your customers.
  2. Distribution management

    There are some rewards that need to be delivered to all customers at once. Some others are only exclusively distributed to certain qualifying customers. That’s why an effective coupon management system needs to be able to distribute single or bulk rewards easily.
  3. Redemption history

    A coupon management system also needs to keep track of the redemption history of each customer. Then, you can notify customers whenever they have soon-to-be expiring rewards. You can also identify rewards that have the most and the least redemption.
  4. Data analytics

    Your coupon management system needs to be your basis for doing data analysis and evaluating your rewarding program. Every data captured can be insightful to modify your rewarding program and make it more attractive and effective in making customers loyal.

Key Takeaways 

Over 92% of customers agree that rewards influence their purchase decision. A rewarding program is one of the simplest ways to make customers come back to your business, making it a great strategy to have. There are many types of rewarding programs to choose from such as points, tiered rewards, and referral programs. In each of these, you can give various rewards from vouchers to free products and many more. Using a coupon management system can help you generate, track, and analyze the effectiveness of your program.

If you are still unsure how to give the most relevant rewards for your customers and organize the distribution, you’ve come to the right place because TADA is happy to help! Contact us today and we’ll arrange the most suitable rewarding program for your business.

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Nida Amalia

SEO and Content Marketing Specialist who loves art, music, and movie.