Key to creating loyalty with rewards programmes

Successful rewards programmes reach a high return on investment by building loyalty
Planned well, rewards programmes can be really valuable in building customer loyalty.
Planned well, rewards programmes can be really valuable in building customer loyalty.


In order to get loyalty right, companies need to go beyond designing and executing stellar rewards programmes. The key is to consider how the programme fits into the broader market mix, how the messaging will align with messaging in other channels, and how it may affect operations or customer service, according to a report by Bain & Company. The report recommends emphasis on few traits, as described below:

  • Informed offers:  Once a company knows how much each of its customers is worth and can identify customers with the highest current lifetime value and estimated full potential value, it has a solid base. A/B testing or,  multivariate testing known as experimental design, can then be used to determine which mix of rewards features and marketing messages will spur the greatest lift in spending. 
  • Customer targeting: Campaigns to encourage a particular kind of customer behaviour have been known to work best when they are highly targeted, based on location, frequency and other related factors. 
  • Exclusive experience: The hospitality industry makes use of status based upgrades frequently. In order to make your customers feel valued, you need to provide a better experience and not just points that add up. 
  • Ease of use: Rewards programmes must be effortless to join or use, however, shouldn't just enroll customers without seeking their permission. 
  • Responsiveness to feedback: The rewards programme can offer a channel for customers to provide immediate feedback, for service agents to react, and for the system to track changes in lifetime value based on that reaction.

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