To gain the loyalty of your customers, you may feel rewarding is your way out. However, if you start your reward point system with this notion, you are probably beginning on the wrong note.

And, the first obvious idea that strikes your mind is finding, studying, and replicating one of the successful reward point systems. But that might not work either.

So many companies would not have failed miserably to gain loyalty with such systems if it were so easy to design reward point systems for customers.

We can tell you step-by-step how to build a successful reward point system for customers, but that won’t help you either.

What you need to learn is how to create a long-term relationship with your customers.

The Mechanics of a Reward Point System for Customers

Customer reward programs should be:

  1. Structured: The reward point system for customers should be well structured, easy to understand, and membership-based. Well-structured programs make the best use of human psychology to drive success. Easy to understand systems increase customer engagement. Membership allows you to collect some information about the customers. Such information could help improve the relationship between you and them. 

  2. Long-Term Oriented: Consider reward point systems as a long-term strategy as they are expected to form a long-term investment for both the provider and the members. Amazon prime has nailed it with their ‘Prime’ program. 

  3. Foster Loyalty: The loyalty programs should stimulate customer retention and customer share development and foster attitudinal and behavioural loyalty.

  4. Futuristic: The loyalty programs should reward customers for their loyalty based upon their current or future value to your brand. Rewards may, for instance, consist of discounts, gifts, or preferential treatment. For instance: Thai Airways recently did something brilliant. Airlines usually reward their frequent flyers with miles. Thai Airways did quite the opposite. It rewarded their ‘Royal Orchid Club’ members with 1 million miles for staying at home