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.
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
How Perks Can Increase Direct Bookings for Budget Hotels
Learn how budget hotels can increase direct bookings by offering perks and exclusive incentives. Discover how Paylode’s platform helps hotels create personalized, automated perk programs that boost guest loyalty and drive revenue.
Key Guidelines for NAIC-Compliant Reward Programs
Learn how to design NAIC-compliant insurance reward programs that foster customer loyalty, improve engagement, and adhere to regulatory guidelines. Discover how Paylode helps insurers automate compliant perk delivery and boost policyholder satisfaction.
Top Tenant Retention Strategies for Property Managers
Discover top tenant retention strategies for property managers, including offering perks, renewal incentives, and personalized engagement. Learn how Paylode helps property managers reduce turnover and improve tenant satisfaction.
Top New Year Retention Strategies for Consumer Wireless Providers
Discover top New Year retention strategies for consumer wireless providers, including autopay incentives, loyalty rewards, and action-based perks using Paylode Boost. Learn how to address churn, meet customer expectations, and stay competitive in the wireless industry.
Gift Cards as Incentives: Boosting Engagement with Surveys and Paperless Billing
Boost engagement with gift cards! Learn how to use them as incentives for surveys and paperless billing. Increase response rates and drive sustainable habits.
The Psychology Behind Gift Cards: Why They’re Perceived as Cash Value by Customers
Discover why gift cards feel like cash to customers. This article explains their psychology, business applications, and tips for using them effectively in loyalty programs.
How Gift Cards Drive Customer Loyalty: Proven Strategies for Modern Businesses
Gift cards are a powerful tool for building customer loyalty, offering flexibility, personalization, and universal appeal. They encourage repeat business, create emotional connections, and drive key actions like referrals. Statistics reveal their impact, with 72% of customers spending beyond the card value. By leveraging technology for automation, personalization, and analytics, businesses in retail, subscriptions, and finance can maximize the effectiveness of gift card programs, fostering deeper customer relationships and increasing satisfaction.
Unlocking the Power of Gift Cards: Immediate Rewards and Proven Engagement with Paylode
Harness the untapped power of gift cards to elevate your marketing strategy and boost customer satisfaction. Discover how these versatile tools can drive brand awareness, foster loyalty, and encourage repeat business, all while providing the personalization and choice that today’s consumers crave.
Why Gift Cards Are a Powerful Marketing Tool
Gift cards aren't just convenient gifts; they're strategic marketing tools that boost brand awareness, foster customer loyalty, and encourage repeat business. They're the marketing secret weapon you might be overlooking, ready to turn casual buyers into lifelong customers.
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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- Donation programs: Appealing to customers with likeminded values can align your brand with those who prefer to spend with likeminded companies.