How Rewards Should Work
So you reward your customers with your digital loyalty punch cards to keep them coming back and receive referrals from those great customers as well. This could be from word of mouth or social media. All from a smartphone. Your digital loyalty punch card system is going to blow your customers away.
So do your customers right by offering multiple rewards with your punch cards. Give them options. People like options. If they spent $200 don’t give a $5 reward. Maybe $25. Make it nice but not a burden on the books. Keep it profitable. Most business owners seem to be rewarding customers with around 10 – 20 percent of purchases. Use multiply rewards. $100 reward, $200 reward. or a $500 reward. Some people will go for the bigger reward. Depending on your business and cost of goods, adjust accordingly.
Profit with Digital Loyalty Punch Cards
Work the numbers a little. Your business can profit with your reward cards. Here’s an example; If you have 300 customers on your rewards program and 100 of those customers get a reward.
Sort of like a rebate, but you are giving them a reward. When they spend say, $100 or $1000 depending on your product you offer at your business. They get rewarded for being a loyal customer. You are basically giving them something back. I would give back a product because it has a higher value than giving them cash rewards.
Example: you own a nail shop that charges $30 for a basic fingernail job. They get 10 of these during a time frame. You reward them with the next one for free. They spent $300 with you and you just gave away a $30 job. That is how you end up with loyal customers. Imagine 100 of those clients. It is cheaper to give rewards than it is to acquire a new customer.
But, every business will be different. So you’ll have to do the math yourself. You have to own it so it becomes your plan when you take action. Plus its a customer generator so you can get more business and keep your current ones coming back for years to come.
What Type Of Business Offers Rewards
Digital loyalty punch cards are great for for all businesses that are willing to give rewards for customer retention including;
- Fitness Centers/ Gyms
- Mom & Pop Shops
- Car Care/ Oil Change
- Nail Saloons
- Hair Saloons
- Retail Stores
Any type of business that wants to maintain a healthy and happy relationship with their current customers. Make sure your rewards for your digital loyalty punch cards are obtainable. Every time a reward goes out, you know your business made a profit. Also have them post it on Facebook or other social media outlets to build your brand.
You might have 500 or 1,000 customers. Keep your rewards program growing for more profit. Smartphone customers will spread the word. It’s your way to give back a little and reap more profit for your business.
Give Your Customers VIP Treatment
Customer comes in your business and buys something. You offer your customer VIP treatment with your digital loyalty punch cards. They provide you with their information:
- Phone Number
They receive points toward a reward. These points add up for their rewards. The dollars spent on their smartphone loyalty punch card based on your criteria or what your business offers as a reward for your digital punch cards.
This all adds up for the customer as well as profits for your business. You should also include an e-mail to welcome them. We recommend that you (if it’s in the budget) offer a reward just for joining your customer loyalty program. This makes it an easier decision for the customer. It also builds your list quicker.
Now every time they come in and spend a certain amount of money with you they get another credit toward the rewards you offer. This enables the customer to keep spending money towards their reward with your rewards program.
Another good idea is to have them share that moment on Facebook and offer them a reward. Example; they get 10 points for sharing a coupon on Facebook. You can see how this would snowball. Sharing is caring. Social media sharing in action on a smartphone.
Sharing is Caring
Here is another example; Kathy and Carrie see this mobile coupon on Facebook and come down and spend money. They get in on the rewards program and your list keeps growing. You must give the program time to work. They share your coupons on social media and it shows up to their friends.
Even when you send them an email with coupons, ask them to share. That is how more customers are acquired, more profit is made for your business and your brand gets more recognition. Can you see how this will pay for itself? Sharing is caring. You want social media sharing. Next up is your analytical data.