I am a sucker for a customer loyalty or reward program. I sign up for them almost everywhere I shop, even if it’s somewhere I don’t shop at frequently. Customer loyalty reward programs can be extremely beneficial to both the company and the customer. Here are 4 reasons why you should sign up for loyalty reward programs.
Coupons
One of the simplest perks of loyalty reward programs are coupons. Some places give you more coupons the more you shop there. This creates more customer loyalty because say you are trying to buy a specific brand of milk. This milk can be found at 3 stores within a short radius of your house and they are all selling the milk for the same price; however, one store sent you a coupon for $1 off. This coupon makes you more likely to purchase the milk at that store because why wouldn’t you want to buy it for cheaper?
Reward Points
Reward points are another common perk of loyalty programs. Rewards points are typically given in exchange for money spent. Once your rewards points reach a certain amount, they can then be exchanged for a specific purpose. For example, if you are a part of a frequent flyer program, you can use your rewards points to purchase flights with that airline.
Rewards points program can in many different forms. Some programs only allow you to exchange your points for one specific purpose (i.e. hotel rewards points can only be used towards booking a hotel stay with that chain), while others allow you to choose what you can cash your points in for. For example, credit card programs often give you a choice of what to cash your rewards points in for. You can exchange points for cash, hotel stays, flights, gift cards or for specific items.
Cash-Back
Some programs give you money towards a future purchase when you reach a specific spending threshold. For example, Nordstrom Rewards gives you a $20 note (a.k.a. $20 credit) when you reach $2,000 or if you’re a Nordstrom cardholder you receive a $20 note when you spend $1,000. DSW rewards gives you $5 for every $100 you spend at their store. There are also several cash-back credit cards. A common cash-back program for credit cards is you receive $0.01 for every $1 you spend. This credit can then be applied to your credit card bill whenever you would like.
Other
Customer loyalty reward programs can also offer a variety of other perks. Some programs will send you a coupon or free gift for your birthday. Other programs may offer you VIP access to shop sales before non-members of their programs get the chance to. A very well-known loyalty program is Amazon Prime, where members receive free two-day shipping on their Amazon purchases. Sephora’s loyalty program has different tiers which are reached based on how much money you spend there each year. One of the perks of the loyalty program is a free makeover at a store.
As you can see, loyalty reward programs come in all different shapes and sizes. These programs are just as beneficial for the company as they are for the customer. The point is the company hopes that by offering their customers some sort of treat, they will be more likely to do business with them and do it more frequently. The more often you do business with the company, the more money you make and the more often you do business with the company, the more perks you receive. It really is a win-win for both parties!
