A loyalty program is essential for company owners because it allows them to maintain a consistent number of clients who make repeated purchases. To put it another way, a loyalty program is essential for a company’s ongoing income. However, if every business makes use of it, how can you stand out among others? Furthermore, the holiday season is approaching, meaning that the business competition is getting more difficult. To help you in this process, this blog will provide 5 tips to optimize reward points in the holiday season.
Why should businesses make use of reward points?
Firstly, what are reward points in businesses? Simply put, customers can receive reward points for a variety of actions on a website, such as creating a new account, making a purchase, referring a friend, writing a product review, and so on. They can then trade reward points for discounts on future purchases.
One of the most effective strategies to promote client loyalty is to implement a reward point program. Customers will earn more appealing incentives if they purchase more things on your site. This strategy is even more effective during the holiday seasons – when people tend to buy more to prepare for the holiday. It can help you keep clients and transform them into loyal ones, thus improving your customer lifetime value.
Furthermore, when you know who your top customers are, you can design targeted advertising efforts during the holiday seasons to attract new customers with the most potential profiles. In this way, those new clients will rapidly become repeat customers, strengthening your brand’s loyalty.
As a result, it’s evident that you can gain new clients more successfully while spending less money on advertising. It saves you time and money by avoiding wasting time and money on channels that only bring in one-time customers who are unlikely to return.
5 tips to optimize reward points during the holiday
Launch the reward program before the holiday
One of the ideal times of the year to launch or update your loyalty program is around the main holiday season, preferably before the holidays. Promoting a holiday rewards program early is a wonderful method to drive new registrations while also promoting prizes, services, and unique savings opportunities. Don’t wait until the exact day or the day before it to let customers know that you’re organizing a special loyalty program. Early notification can help you attract more attention and subsequently gather more customer data if purchases increase.
Integrate reward points in the omnichannel shopping experience
Omnichannel shopping will undoubtedly play a significant part in differentiating your business in 2021. You should be adaptable in order to upgrade the appearance and feel of your eCommerce reward program and loyalty app in the same manner that you would a retail store’s storefront. Simply put, customers should be able to utilize reward points while shopping in both physical and virtual establishments. This involves altering online and offline information, such as headlines and greetings, to be more seasonal, as well as adding some holiday elements to the design.
A good example of reward points in omnichannel shopping is ‘Starbucks Rewards’. There are a few different options for new users to sign up for the Starbucks Rewards Program. Starbucks’ user-friendly software allows consumers to check their points balance and gift card balance through mobile phone, online, and in-store. During the limited-time deal, customers may receive awards for every dollar spent, birthday rewards, and double-stars.
Starbucks’ rewards program frequently collects information on customers’ habits in order to provide more relevant incentives and freebies to satisfy customers’ demands, especially during holiday seasons such as Christmas. This keeps the brand in the minds of buyers.
To accommodate the high traffic of the holiday season, businesses should also use technology to stay labor- and time-efficient. Many companies nowadays use point of sale solutions that support loyalty platforms. The reason behind this is that they can sync the reward points system with other business operations, such as sales and reporting. If you are looking for a POS like this, check out ConnectPOS with outstanding omnichannel features and support for loyalty platforms.
Gamifying the experience makes interacting with the reward system more enjoyable. Because of their temporary nature, gamified loyalty program features succeed in building anticipation around the holidays.
The reward calendar, which is comparable to the classic advent calendar, is an amazing example of gamification. They are a set of daily loyalty program rewards that are only applicable for that day. Another concept is a holiday prize wheel, in which members may use their points to spin a prize wheel with a festive design to win point bonuses, vouchers, or small presents with their next purchase.
Exclusivity is a simple concept but works well. Giving top-tier members or loyal customers first access to things costs nothing, but it is a very rewarding incentive for members. Many people consider having early access to be a symbol of power. Others who desire this advantage look up to those who already have it, and will increase their expenditure in order to obtain it.
Sephora is known for luxurious rewards. And over Christmas time, the cosmetics retailer takes gifting to a whole new level. Beauty Insiders receive a special price based on the tier they’ve achieved in the calendar year, with greater and better prizes for their most loyal clients. For example, “Beauty Insider” members will earn $15 off a purchase of $50 or more, while VIB and VIB Rouge members would receive $25 and $50 off, respectively. In this way, Sephora holiday exclusive rewards cards make everyone’s Christmas season a bit brighter.
Running a reward program is definitely a campaign in which you should commit time, money, and effort since the long-term benefits to your long-term development are significant. We hope that these tips to optimize reward points during the holiday season can help you during this journey.
If you are interested in ConnectPOS, we’re ready to help. Contact us for more information!