A Complete Guide On How Loyalty Reward Programs Work
Rohit Singh VP of Customer Engagement Schedule Free Consultation
  • At the outset, let us define the term Loyalty Rewards Program. It is a type of rewards program offered by a company to its customers who make frequent purchases.

    A rewards program can be of many types and may include customer free merchandise, coupons, and rewards or, in some cases, the advance release of their product.

    As per one report, a customer generally engages with 14 rewards programs at a time, whereas the capacity is only seven. It means customers may not get enough value from their trustworthy brands anymore, and most importantly, businesses may also be losing their money and resources.

    Therefore, it is vital to keep a business free from that segment and add sufficient value to the program so that customers keep coming back. 

    There are some ways to enroll customers in the Loyalty Rewards Program, and we shall take a look into them over here.

    • Putting a Point System in Place – 

    It is the most common type of Loyalty Rewards Program that many of us may have seen multiple times. In this type of program, frequent customers get benefits with a rewards program to earn points that later translate into rewards.

    The reward can be of many types. It can be in the form of a discount, a customized special treatment, or a freebie of some kind. Whatever it may be, customers feel encouraged to accumulate a certain number of points so that they can redeem a reward.

    Having described the process, it is also vital that companies keep the system simple and straight so that there is no confusion in a customer’s mind.

    • Making a Tier System for Initial Loyalty – 

    It is imperative to balance targeted and attainable rewards. The tiered approach can reward the initial loyalty towards a product or service and stimulate more sales.

    A company can always gift small rewards for being a part of the program. And, after that increase, the reward value as a customer gets higher up on the loyalty ladder.

    The main difference with a points-based system is that consumers see long-term versus short-term value in the loyalty program. A tiered program can work very well for a high-cost, high-commitment product like insurance, airlines, etc.

    NextBee’s Loyalty Program works best due to its overwhelming features that enhance customer’s trust in the particular brand.

    What is spectacular about NextBee’s loyalty software?

    With machine learning and artificial intelligence, brands can personalize their loyalty reward programs by using innovative features of the software.

    Some brands offer discount coupons to their customers. It eventually makes customers purchase more and build trust.

    With enhanced customer service, increases revenue, and improves customer retention rate.

    • Playing on Customer Values and making Non-Monetary Programs –

    Businesses that understand their customers will find their customer loyalty for the long-term success of the business.

    Shared values can be of great help while devising a Loyalty Rewards Program so that a customer will be loyal to a brand. Moreover, such a relationship can stay intact for a very long time.

    There have been some studies on this aspect. It was found that some customers are not loyal to individual businesses but share the core belief because they are somehow visiting there for some time. 

    Hence, there can be a fair chance that customers may show interest in discounts or non-monetary rewards. No doubt that the discount codes and promotional coupons can help a lot. But, if a business can offer value other than money, which can be quite welcoming for many customers.

    The same type of old Loyalty Rewards Program that most customers can highly acclaim should come with good benefits. However, it is essential to note that the rewards program should be made depending on the business.


    There are also many other ways in which a rewards program can be made. With NextBee’s business and its core belief, brands can design a loyalty program that can help keep the consumers interested for a long time.

    Connect with NextBee today!

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