A good incentive program is an excellent way to improve customer engagement. Rewards such as a movie gift card, an experience or a personalized item can make all the difference.
For a points-based incentivee program to be successful and help increase your sales, a few details must be considered. The particularities of the business, clear objectives and a solid strategy. In addition to having a platform where the program can be managed and monitored to measure results.
7 keys to a successful incentive program
1. Know the target audience of your incentive program .
The more you know about your customers, their behaviours, interests, or motivations, the more accurate your catalogue of incentives will be to motivate them to make or repeat purchase transactions. In short, the user must be at the center of the entire strategy.
2. Incentive program format
Are you thinking about sporadic customer acquisition actions? Then direct gifts with high perceived value are the key: whether gift cards, experiences or sweepstakes.
On the contrary, if you are looking for customer loyalty, the strategy must change. To establish a long-term relationship that leads your customers to the fulfilment of your objectives, a points program is ideal. The same goes for incentives to buy new products or refer friends. This will allow you to work on each of your objectives over time. In this program format, you can also incorporate gamification actions. That is actions that provide a playful and interactive component that will strengthen the link with your brand.
Simplicity and easy adhesion
Simplicity and clear rules are key concepts to consider for your incentive program.
Program membership will be low if the beneficiary has to make several clicks on your website to find the information. The low result will be the same if the rules and conditions for participation are broad and complex. Apply simplicity to incentive retention. Immediacy and ease must be present in your award delivery logic.
The beneficiary must be able to receive or obtain his or her gift quickly. Without many formalities and additional conditions not initially mentioned. Facilitate access to the gift by email, SMS or through your company’s usual communication system.
4. Achievable rewards
The customer should perceive the objectives of the loyalty plan as easy to achieve. Otherwise, it will not motivate him and he will lose interest, both in getting the gift and in your company. The ideal is to have different levels of effort. Easier objectives with prizes of lower economic value. And for larger goals or efforts, higher value awards or higher perceived value.
The customer shall be kept informed about his progress in the loyalty or incentive program. Especially if it is a points-based program. This eliminates the feeling of uncertainty and prevents disengagement from the program. How close are you to your prize? How is it evolving in the program? It is recommended to create spaces with information about the program or establish a communication channel with the beneficiary to solve their doubts.
6. Communication in the right measure
It is crucial to incorporate disclosure in the different communication channels with your target audience: social networks, newsletters, corporate websites, etc. The most important thing is that your customer knows that the program exists and what kind of actions are rewarded. You can have exclusive communications for the program or take advantage of regular communications to mention the existence of the program. For example: in the purchase confirmation email, you can indicate the existence of the program and where to get more information.
7. Automates and facilitates management
The technology behind your incentive program and the integration with your systems will make management as automated as possible. This will reduce the workload on the organization. Giving 50 gifts each month is not the same as giving 1,000 gifts. If your program is going to have volume, you need to have a platform that facilitates the delivery of the incentive. And, above all, the reconciliation of costs with the different suppliers of the prizes or gifts.
Include in your program campaigns with automatically validated rules or with very little manual management. For example, assign points or direct rewards as soon as the system detects that the customer has purchased a certain product line that you want to promote. Or, use tools that can massively allocate rewards or points to beneficiaries.
In addition, automation will facilitate immediate communication and delivery of awards. This will undoubtedly make the customer experience more positive.
There are many things to consider when planning an incentive program that is 100% effective. Start by designing your strategy and then get to work. Do you want us to help you plan and implement your program? Contact our team and we will share best practices with you.