The major objective of a rewards program in marketing is the creation of vibrant customer value proposition. There are many of such programs in existence these days including bonus points as reward for purchases made, frequent flier rewards and frequent buyer plans among others. Whichever type of rewards program you choose to implement, it is very important that it not only engages your customers and participants in the program but also differentiates your rewards program from others. Customers usually react positively to enterprises that indicate that their loyalty is valued and they prove this by participating in rewards programs.
Rewards programs therefore need to be a critical part of an enterprise’s marketing strategy. The design and inclusion of rewards in a marketing strategy however needs to be a carefully planned and executed process. In order for it to be a success, some factors must be considered and these include: (more…)