Customer rewards

There are thousands of ways to reward and thank your customers. Find resources here for where to start, what to offer, and ways to leverage perks to build loyalty.
MacBook mockup

Customer rewards aren't always point based

After all, only 37% of consumers say that points can influence their loyalty (KPMG). Only 42% of consumers make purchases that earn rewards or benefits at least several times a week, reflecting a sentiment that 69% of Millennials share: loyalty programs are difficult to join and earn rewards. In our guides about customer rewards, we dive into the perks landscape and explore ways to reward customers that go beyond traditional point-based programs.

Latest

Power of surprise on consumers

Power of surprise on consumers

There's very little research on how psychologically influential surprise moments actually are in our lives. From proposals gone wrong to bursting into tears at birthday parties, we're a blank slate when we don't see what's coming. Here's why, and how you can use this power in your customer engagement strategies.
Automatic Payments: Guide for business managers

Automatic Payments: Guide for business managers

We look at how to get more Autopay signups through incentives, the revenue impact, and how to get there with an intentional campaign.
Four types of pricing structures and when to use them: Perks, rebates, discounts, and promotions

Four types of pricing structures and when to use them: Perks, rebates, discounts, and promotions

Let's compare your options for in-the-moment customer incentives. We go through the pros and cons of creating programs for rebates, offering discounts on your products, running promotional campaigns, or using 3rd party perks – and why perks just might win.
Always send your customers happy birthday emails

Always send your customers happy birthday emails

Thinking of incorporating birthday messaging into your communications plan? Learn the best practices here plus get a free email template.
Building partnerships programs: A guide for project managers

Building partnerships programs: A guide for project managers

We get real on what it takes to launch a partnerships program in-house; the steps and costs associated, what to watch out for, and when to hire a third party to help get it done.
The military discount: History, best practices for offering one, and military perks

The military discount: History, best practices for offering one, and military perks

Get the history of the military discount, tips on how to offer one, and a list of companies currently offering discounts.
Resident benefits packages: What you need to know before you implement a mandatory fee

Resident benefits packages: What you need to know before you implement a mandatory fee

Resident Benefits Packages are trending, but are they right for your tenants? See the pros, cons, and what you should know before you get locked into a contract.
Increase customer retention with perks

Increase customer retention with perks

How can perks reward your customers for sticking around? Let's explore.
How a customer perks program affects LTV

How a customer perks program affects LTV

How do you increase the lifetime value of your customers? Offer a reason for them to come back.

There's countless ways to design your rewards program

Here are the types we know about. Overall, most programs will utilize a combination of points, perks, cash back, or rebates as the rewards currency. Choose which levers make the most sense for your business depends a lot on what the competitors in your industry are doing, and how you can serve customers better and faster with your program.

  1. Points programs: Customers earn points based on dollars spent and frequency of purchases which are redeemable for free products, gift cards, or other rewards. Commonly used in aviation, hospitality, retail, and financial industries.
  2. Cash back programs: Customers earn a percentage of cash back on spending which comes in the form of statement credit, check, or gift card from the company. Often used in credit cards, online services, and consumer banking industries.
  3. Loyalty programs: Brands provide exclusive perks, privileged services, and special sales to their most loyal and high-value customers to maintain engagement. Used in hotel, specialty retail, and grocery store industries.
  4. Tiered programs: Companies provide increasing benefits and higher redemption rates as customers reach new tiers through higher spending over time to incentivize loyalty. Airlines, luxury retailers, and specialty membership organizations utilize these types of programs.
  5. Referral programs: Businesses reward existing customers for referring their friends and family to open new accounts; benefits come in cash, points, or gifts for both referrer and referee. Technology companies, financial institutions, and healthcare networks leverage these programs.
  6. VIP programs: Providing privileged access to high-revenue customers with exclusive events, preview sales opportunities, and sneak peeks in advance of other customers. Premium credit card companies, luxury automotive brands, and elite professional services firms provide VIP rewards.
  7. Rebate programs: Brands provide partial refunds or discounts to customers after initial purchases as purchase incentives. Used often by big box retailers, insurance providers, and travel booking sites.
  8. Prize draws: Companies automatically enter members into contests to win big ticket merchandise prizes like vacations, transportation, and electronics to build engagement. Used by consumer product brands, entertainment companies, and professional sports teams.
  9. Discount programs: Brands offer loyal members exclusive sale pricing or members-only discounts to maintain loyalty. Offered by warehouse retailers, specialty dining and fitness concepts, and subscription box startups.
  10. Donation programs: Appealing to customers with likeminded values can align your brand with those who prefer to spend with likeminded companies.