Category: Personalization

The 5 Loyalty Rewards Program Engagement Tactics Your Customers and Brand Need This Holiday Season

The 5 Loyalty Rewards Program Engagement Tactics Your Customers and Brand Need This Holiday Season

Amrith G.

SVP, Marketing & Customer Analytics | Nov 20, 2023


Is your loyalty rewards program going to deliver on expectations this holiday season — on both sides of the relationship?

5 Ways You Can Up Your Rewards Program Game

Reevaluate Your Scoring Systems

Many rewards programs are generic. They look, feel, and work the same – like a ledger that keeps a basic record of points earned and spent and does not really do anything else.

Take Starbucks: long known for their brand stickiness and impressive customer loyalty, the big brand took a belly flop back in 2016 when they decided to ditch their intuitive and straightforward 1 purchase = 1 star, and 12 stars = 1 coffee rewards program model.

They changed to a 2 stars per dollar spent-based model and required 125 stars to redeem a free coffee. This meant the average customer who liked regular coffee had to spend $62.50 instead of $48.00 to get their free cup of coffee, and the core customer base was enraged.

The coffee conglomerate took a while to recover but eventually added tiers to their rewards program, stopped stars from ever expiring, and added gamification and personalized rewards for loyal customers.

A simple scoring system is not enough, so it is time to learn a lesson from Starbucks’ stumble and recovery and learn how to truly engage with gamification and long-term relationship-building strategies.

Make Things Personal By Leveraging Customer Data

Customer loyalty and customer retention are inextricably linked, and big data and analytics are driving both — the importance of personalization in a good rewards program and tracking loyalty marketing metrics.

Customers that are actively engaged with brands and their loyalty programs make 90% more frequent purchases, spend 60% more in each transaction, and are five times more likely to choose the brand in the future.

You can use big data and analytics to ensure the rewards and opportunities offered to match a customer’s spending habits – whether they customarily spend on travel expenses, entertainment tickets, fine dining, or expensive electronics.

Perx’s rules engine makes all this possible by identifying the best incentive to drive consumer action, weaving the offer and experience into a seamless mobile-first journey, and surpassing customer expectations with experiences and rewards that fit their lifestyle.

Ensure Every Reward Is Exciting Enough to Be Memorable

38% of consumers are not interested in joining loyalty programs due to their lack of perceived value. People value their time, and they will opt out unless you make it worth their while to participate in your loyalty program. So, you must figure out how to keep them consistently looking for the next chance to participate and receive a reward.

Use gamification to keep them moving and plan “free” bonuses at intervals to prevent stagnation along the customer journey. Make every reward high-value enough to make it worth the customer’s time to engage with each touchpoint and remind them frequently about the bigger prize at the end of each segment of the journey while teasing the next round of experiences.

Double Down on Instant Gratification

Instant gratification resonates with consumers, particularly the millennial and Gen Z audience, and 45% of consumers say they will switch brands if a company does not actively anticipate their needs. These customers crave immediacy and have become fast adopters of click and collect, needing that hit happiness that comes from getting a reward.

Start your customer journey with actions and rewards that offer immediate gratification. Then, slowly build to longer experiences with bigger rewards at the end to increase trust and belief in your program’s value. Provide nudges and assistance in reaching goals to prove your loyalty to your customers is as strong as you want their brand loyalty to be.

Beat Out Your Competition By Going the Extra Mile

What is your competition doing? It is time to investigate. If they are offering a discount on a loan or an increased interest rate to members of their loyalty program, find a way to sweeten the deal with an extra, personalized reward on top of the main offering to differentiate yourself.

Brand Loyalty Programs Designed For Maximum Engagement

Capital One’s “Purchase Erasure” recognizes it can be easy to forget to use bank card-associated air mile points during an impulsive travel planning session. As a result, customers can submit air mile point-eligible travel purchases up to 90 days after the fact for reimbursement. This makes customers feel like their bank is sincere about benefiting from their earned points.

One of Asia’s top three banks needed a creative and efficient solution to increase overseas spending of their high-end credit card customers. Perx identified a segment of existing overseas customers who were credit card users with a higher propensity to spend and leveraged real-time analytics and valuable customer insights into immediate, impactful business decisions and outcomes. As a result, the bank reached out to 21,000 of their existing customer base and 91% of targeted customers engaged with the campaign. Over 500,000 Instant Rewards were delivered in real-time, including 10M KrisFlyer miles, and the campaign achieved $24M in incremental spend for the bank.

Bonus Tip: Make it EASY

Perx rewards program for another bank used stamps culminating in a free high-value prize, with a QR code scannable at any participating outlet to redeem the reward and even a scheduling option for picking up the reward, propelling the customer through that last-mile to achieve their reward.

Conclusion:

The Perx Loyalty and Engagement Platform is ideal for brands looking to build real and meaningful relationships with their existing and prospective customers and create customer experiences that engage and excite them. Brands can use a digital loyalty marketing platform to drive meaningful behaviors that result in personalized rewards.

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Personalization and Its Role in Building Customer Loyalty

Customize to Captivate: Personalization’s Role in Building Customer Loyalty

Personalization and Its Role in Building Customer Loyalty

Customize to Captivate: Personalization’s Role in Building Customer Loyalty

Foster strong relationships by creating tailored experiences that resonate with consumers

Amrith G.

SVP, Marketing & Customer Analytics | Sept 14, 2023


Welcome to the era of personalization, where firms are redefining customer experiences and fostering deeper customer relationships. 

Gone are the days of generic messages and one-size-fits-all approaches. Nowadays, customers expect tailored experiences that cater to their unique wants and needs. In fact, according to McKinsey, 76% of consumers get frustrated when businesses do not offer personalized experiences.

Personalization

What is It?

Personalization is the act of customizing customer experiences based on information that businesses have learned about each specific individual. Some channels through which such tailored content can take place include emails, websites, mobile apps, and in-store. 

To better understand this concept and its importance, let’s take Sephora as an example. When looking at a specific product on their site, consumers are automatically offered a detailed table comparison of products that are similar to the one being viewed.

This offers them enhanced convenience by saving consumers research time and effort. It then also increases consumers’ product knowledge, allowing them to easily make the choice that best suits their needs.

Another prime example is Amazon. When customers visit their website, they are greeted with a tailored homepage that displays product recommendations based on their browsing and purchase history. Such personalization creates a compelling incentive that increases the likelihood of customers spending a longer time on the site, exploring options and making purchases.

How Does Personalization Shape Customer Loyalty?

Personalization is crucial in building customer loyalty as it pushes firms to understand and cater to each consumer’s individual preferences. In fact, according to Salesforce, 70% of consumers emphasize that how well a company understands their specific needs directly impacts their loyalty. To better understand this, let’s explore four key roles that it plays in this aspect.

1. Customer Experience Enhancer

By tailoring offerings and messages to align with the unique preferences of individual customers, personalization empowers businesses to deliver highly relevant experiences that demonstrate a genuine understanding of their consumers. This allows them to foster a stronger emotional connection, resulting in heightened customer satisfaction and unwavering customer loyalty. In fact, Accenture found that 91% of customers are more likely to shop with brands that recognize, remember, and offer relevant recommendations.

2. Engagement Booster

Personalized experiences resonate with customers on a deeper level. Through delivering content that aligns with their interests, businesses can better capture consumer attention and drive overall engagement, ultimately fostering loyalty.

3. Customer Needs Anticipator

Personalization compels businesses to gain deeper insights into customers’ preferences and behaviors. This allows them to proactively anticipate and address customer needs even before they are explicitly stated. In today’s dynamic landscape where customer needs are rapidly evolving, such predictive capability is growing increasingly vital.

By harnessing it, companies can then secure more resilient customer loyalty.

4. Customer-to-Advocate Converter

Exceptional personalized experiences not only inspire customers to share them with friends and family, but also to recommend the brand and become devoted ambassadors.

This fosters an enthusiastic cycle of supporters who actively advocate for the brand, enhancing its reputation and cultivating long-term customer loyalty.

Conclusion

In this era of personalization, businesses that deliver bespoke experiences will be one step ahead in cementing unwavering customer loyalty. By tailoring experiences to suit customer needs, businesses can position themselves at the forefront of customer-centricity, giving themselves a sustainable competitive advantage.

To stay ahead of ever-changing customer preferences, consider exploring the Perx Platform. With its gamified and customizable system, Perx offers unique ways to capture detailed insights that prepare your business to anticipate customer needs. Book a demo today to discover how Perx can revolutionize your personalization efforts to solidify customer loyalty.

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Drive Retention

How Loyalty Programs Help Reduce Churn

Drive Retention

How Loyalty Programs Help Reduce Churn

Explore the importance of customer retention and the role of robust loyalty programs in reducing churn rates.

Dharsh Kannan

MarTech Blogger | Aug 02, 2023


Customer churn, a term commonly used in the loyalty industry, refers to the loss of users within a specified timeframe. It poses a significant threat to a company’s customer base, underscoring the importance of consumer retention for businesses. To combat churn effectively and promote loyalty, implementing robust loyalty programs becomes essential. This need becomes even more pronounced for industries operating on a subscription-based business model, such as banks, telecom companies, and insurance firms, which often prioritize churn rates as a critical business metric. Let’s explore why customer loyalty is paramount in reducing churn and examine the influential role that loyalty programs play in achieving this objective.

Understanding the importance of churn

Understanding the importance of churn

Churn, the dreaded term in business, refers to the rate at which customers leave or discontinue their relationship with a company. It occurs due to various factors like poor customer experience, fierce competition, or dissatisfaction with the product or service. Companies must care about churn because it directly impacts their bottom line and long-term success. Losing customers means losing revenue, market share, and potential brand advocates. 

Furthermore, acquiring new customers is often more costly than retaining existing ones. By understanding the reasons behind churn and actively addressing them, companies can foster loyalty, improve customer satisfaction, and ultimately drive sustainable growth. Embracing a customer-centric approach and deploying effective retention strategies become crucial in the battle against churn.

How loyalty programs reduce churn

Loyalty programs are a powerful weapon against churn, capable of forging unbreakable bonds with customers. By offering exclusive rewards, personalized incentives, and special privileges, these programs create a sense of appreciation and value. They foster emotional connections, transforming customers into loyal brand advocates. Loyalty programs not only incentivize repeat purchases but also provide valuable data for tailored marketing strategies. 

By understanding customer preferences, companies can deliver targeted offers, anticipate needs, and enhance the overall experience. Moreover, loyalty programs encourage customers to stay committed, reducing the temptation to switch to competitors. Investing in loyalty programs enables companies to unlock the secret to customer retention, turning satisfied buyers into devoted brand ambassadors and fueling long-term growth. Here is a list of strategies brands can employ to combat churn.

Strategy 1: Personalized Milestones

Celebrate important milestones and anniversaries with personalized rewards. Send personalized messages, exclusive discounts, or surprise gifts to customers on their birthdays, the anniversary of their first purchase, or other significant moments. This strategy acknowledges and appreciates customers’ loyalty, making them feel valued and more likely to continue their association with the brand.

Strategy 2: Gamification Elements

Infuse gamification elements into the loyalty program to make it more interactive and enjoyable. This can include challenges, badges, points, or leaderboards. By incorporating these elements, brands can create a sense of competition, excitement, and engagement, motivating customers to continue their association with the brand.

Strategy 3: Feedback Collection

Gaining customer feedback is crucial in minimizing churn. Loyalty programs offer a range of effective methods to gather customer feedback, such as utilizing reviews and ratings, organizing contests, and conducting surveys. Moreover, incentivizing customers for participating in these feedback activities adds an extra layer of appeal and motivation.

Strategy 4: Data Analytics

Perx Loyalty Platform

First-party data is a valuable resource for analyzing customer behavior and purchase patterns. By leveraging this data and employing robust analytics, brands can identify customers most likely to churn and gain insights into their detailed purchase preferences. This data, collected directly from customer interactions, offers a deep understanding of preferences and potential indicators of dissatisfaction. Analyzing first-party data helps segment the customer base effectively, uncovering patterns and trends associated with churn.

Strategy 5: Experiential Rewards

Offer experiential rewards that go beyond traditional discounts or freebies. This could include VIP access to exclusive events, behind-the-scenes tours, or personalized consultations with experts. By providing memorable and unique experiences, brands can create a strong emotional connection with customers and increase their loyalty.

Strategy 6: Social Impact Initiatives

Tie loyalty programs to social impact initiatives or causes that align with your brand values. For example, donate a portion of each customer’s purchase to a charitable organization or offer rewards for volunteering or participating in eco-friendly activities. This strategy not only increases customer engagement but also positions the brand as socially responsible, attracting and retaining like-minded customers.

Strategy 7: Co-creation Opportunities

Involve loyal customers in the co-creation process of new products or services. Seek their input through surveys, focus groups, or beta testing programs, and reward their participation with exclusive previews, early access, or special recognition. By making customers feel valued and involved, brands can strengthen their loyalty and foster a sense of ownership.

Overcoming churn is a crucial task for businesses as it directly impacts their revenue and long-term success. By prioritizing customer retention and implementing effective strategies such as investing in loyalty programs, companies can significantly reduce churn and foster customer loyalty.  Such programs serve as powerful tools, converting satisfied buyers into dedicated brand ambassadors through the cultivation of emotional loyalty. To optimize your customer loyalty program, consider using The Perx Platform. This cost-effective solution can supercharge user acquisition, in-app engagement, and reduce churn. Book a demo today to learn more about how The Perx customer loyalty and engagement platform can elevate your loyalty program and boost customer retention.

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Customer Retention Strategies for Banks That Work

Customer Retention Strategies for Banks That Work

Unlock effective strategies to dissuade customers from flocking to rival banks

Dharsh Kannan

MarTech Blogger | July 13, 2023


The overarching objective of every bank is to establish and maintain enduring customer relationships while keeping costs in check. With an abundance of banking options available at one’s fingertips, customers now expect bespoke experiences and robust digital tools that cater to their individual needs. Failure to meet these expectations leads to a higher churn rate. 

Customer acquisition can be a painstaking process, but the ultimate challenge lies in retaining their loyalty as users can easily switch banks in seconds. Alongside prioritizing customer acquisition, it is critical to deploy strategies that cultivate long-term customer retention to prevent them from gravitating toward rival banks 

Why Customers Part Ways With Their Banking Providers

According to a study conducted by Quantum, a significant number of consumers switch their banking providers due to dissatisfaction with the speed and digital capabilities of their banking experience. Poor customer experiences and the availability of better services from other banks have led to many consumers choosing to close their accounts. Additionally, some people switch banks because they feel that their current one doesn’t offer all the services they require.

A survey by Lightico highlights that speed and efficiency are crucial considerations for consumers, particularly when it comes to tasks like personal loan applications.

This trend is more pronounced among Gen Z and Millennial consumers, who prioritize convenient online access to their accounts when selecting a new financial institution.

Consumers find it frustrating when they can’t independently resolve their financial queries and prefer to avoid traditional channels for their day-to-day banking activities.

Each time a consumer leaves a bank, it represents a missed opportunity to foster loyalty and retention. This underscores the importance of meeting customers’ evolving needs and driving innovation in the banking sector.

Here are four effective strategies designed to drive customer retention in the banking industry.

1. Personalization is king

Customer retention in the banking industry can be achieved by leveraging personalized customer experiences. This entails adapting products, services, and communications to align with individual preferences and requirements. Banks can offer timely incentives and discounts on financial offerings, such as interest rates, fees, or loan terms, tailored to each customer’s unique circumstances. 

They can also enhance customer satisfaction by sending customers an e-card on special milestones like birthdays or successful loan closings. Additionally, empowering customers on their financial journey can be achieved by providing practical resources and educational tools to effortlessly navigate their finances. By implementing these approaches, banks can foster stronger relationships, enhance customer satisfaction, and ultimately bolster customer retention.

2. Mobile Banking: A competitive edge in the digital era

Mobile banking has seamlessly integrated into customers’ lives, offering unmatched convenience and accessibility. Through mobile banking, banks can deliver personalized services, real-time notifications, and interactive financial management tools, which are pivotal factors in enhancing customer satisfaction. Additionally, a robust mobile banking strategy positions banks competitively in the digital era, allowing them to attract tech-savvy customers who prioritize efficiency and convenience.

3. Simplifying banking experience

Differentiating your bank in the increasingly crowded financial ecosystem requires a focus on simplicity. Whether a new customer opens a checking account at a physical location or an existing customer starts the loan process online, prioritize providing seamless experiences at every step. To meet the expectations of your customers, leverage a technology platform that empowers your bank or credit union to deliver experiences that cater to their current and future needs. Begin by offering a fast and frictionless onboarding process for new customers, and continue delivering the same level of ease throughout their entire journey.

4. Listen to your customers’ feedback

Instead of focusing on highlighting your top services, make it a priority to actively engage with your customers and truly understand their needs. Gain valuable perspectives into their preferences and experiences by assessing customer satisfaction through online reviews.

Dissatisfied customers often provide detailed feedback regarding their negative experiences with your online services or in-person interactions. Furthermore, regular surveys can provide valuable insights into your product offerings and customer service.

Utilize these valuable insights to assess and enhance your strategies for retaining customers, leveraging customer feedback to make improvements and address any shortcomings in your operational processes.

By implementing the above strategies, banks can significantly amplify their efforts to bolster customer retention, while also empowering teams to cultivate customer loyalty at every juncture. Take the first stride towards a resilient loyalty program for your bank with the Perx Platform, which promises to boost your customer retention rates. Request a demo today to witness all its unique features and functionalities, and explore how you can use them to your advantage.

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What is Loyalty Marketing and How It Can Help Brands

What is Loyalty Marketing and How It Can Help Brands

Unlock the secret behind how loyalty marketing can drastically increase your brand value

Harwin Kaur

MarTech Blogger | July 02, 2023


In this ultra-competitive digital era, attempting to differentiate yourself from the crowd comes with its own set of unprecedented challenges. Brands are constantly striving to retain the attention of their existing customers while simultaneously trying to concoct unique methods to acquire new ones.

Enter: loyalty marketing, a powerful approach that has completely transformed the way in which businesses connect with their customer base. Leveraging loyalty marketing strategies can aid brands in forging stronger bonds with their customers, fostering brand advocacy, and ultimately gaining a competitive edge in the marketplace.

What is Loyalty Marketing

Loyalty marketing is a carefully curated strategy designed to retain existing customers by offering enticing incentives like exclusive perks, free rewards, and discounts. It’s an effective method for brands to express gratitude and reward the support of their valued patrons. With a focus on nurturing lasting relationships, loyalty marketing ensures that customers feel appreciated, valued, and motivated to stick around for the long haul.

Why Loyalty Marketing Is Important 

At its core, loyalty marketing is the secret ingredient that transforms ordinary customer-business connections into extraordinary, lasting relationships. Its primary aim is to entice customers and indulge them with an immersive experience. Additionally, loyalty marketing enables brands to collect valuable customer data through various programs, which can be leveraged for targeted marketing campaigns and personalized experiences. This results in an increase in customer lifetime value and ultimately boosts overall brand profitability.

Loyalty Marketing

A study conducted by Accenture revealed that businesses experience a significant surge in revenue, ranging from 12 to 18 percent, from loyalty program members compared to non-members. This shows the substantial impact loyalty marketing strategies have on driving higher revenue and highlights the significance of having a well-designed loyalty marketing strategy.

Loyalty marketing isn’t just about fleeting transactions; it’s about creating a symbiotic bond that caters to customers’ needs, desires, and aspirations.

Integrating it into your brand strategy is a game-changer that will  set your business apart from the rest, emphasizing the true power of long-term advocacy over short-lived transactions with both existing and new customers.

How to Incorporate Loyalty Marketing into your Brand Strategy

Acquiring a loyal customer base cannot be achieved overnight. Instead, it arises as a result of a personalized and well-designed loyalty marketing strategy. This nudges consumers to choose your brand over any other due to the strong affiliation they feel with it, looking past comparative factors like pricing.

This loyalty is nurtured through a series of positive interactions that establish trust over time. The ultimate objective is to transform customers into brand advocates, making loyalty a critical component of long-term business success. Enhancing customer loyalty not only sustains customer purchases but also amplifies brand advocacy to reach a new and wider audience. Below are some ways to achieve this:

Loyalty Programs

Loyalty programs are arguably the most important aspect of loyalty marketing as they provide a structured framework to incentivize and reward customers for their repeat purchases. These personalized programs are curated to create a sense of exclusivity and appreciation for loyal customers, encouraging them to choose your brand consistently. There are several types of loyalty programs with a slew of different offerings. 

One type of loyalty program is focused on tiered rewards, where customers are placed into different tiers based on their level of engagement or spending. As customers ascend through the tiers, they unlock increasingly attractive benefits and privileges. This tiered structure creates a sense of progression and aspiration, driving customers to reach higher levels and enjoy exclusive perks reserved for top-tier members. 

Another type is a points-based loyalty program, where customers earn points for each purchase they make. These points can then be redeemed for various perks, including but not limited to discounts, free products, or exclusive experiences. This provides a sense of accomplishment for customers as they accumulate points toward valuable rewards. This is just the tip of the iceberg when it comes to the thousands of loyalty programs that brands across the globe have designed.

Social Media

Social media platforms like Instagram and Facebook play a vital role in loyalty marketing by allowing brands to directly connect with their customers. A study by Sprout Social revealed that 91 percent of consumers believe social media has the power to connect people. Additionally, 78 percent are in favor of brands using it to bring them together.

Social media platforms can be leveraged to share exclusive content like behind-the-scenes glimpses, sneak peeks, or exclusive promotions. This creates a sense of exclusivity, strengthening the bond between the brand and the customer.

Additionally, social media platforms serve as communication channels to provide customer support. Brands can address inquiries, resolve issues, and offer assistance in a timely manner, showcasing their commitment to customer satisfaction. By facilitating interactions between customers, brands can strengthen their connection with customers. Overall, actively engaging with customers on social media platforms will allow your brand to establish trust and value customer input, fostering brand loyalty. 

External Partnerships

Developing external partnerships with other merchants is a highly effective strategy in loyalty marketing. By collaborating with complementary brands, businesses can expand their offerings for customers and attract a new audience. One way to do this is to collaborate on a joint loyalty reward program which will allow customers to earn and redeem rewards across both brands. This encourages cross-purchasing and boosts customer engagement. 

Additionally, cross-promotion can be an efficient tool to be used to leverage each other’s customer base and reach a new demographic. Some ways to achieve this can be through organizing joint marketing campaigns and collaborating on content creation. Such partnerships strengthen brand loyalty by providing customers with more value, variety, and unique experiences. Strategic collaboration enables brands to expand their reach, tap into new markets, and build stronger connections with customers, resulting in long-term success.

What You Should Know

In conclusion, loyalty marketing is a transformative strategy that drives brand advocacy by fostering strong customer-brand relationships. By implementing personalized loyalty programs, harnessing the power of social media platforms, and forging external partnerships, businesses can achieve sustainable success in the long run.

If you’re interested in diving into the world of loyalty marketing, consider the self-serve Perx Platform which empowers businesses to transform fleeting customer interactions into long-lasting bonds through the synergy of behavioral science and adaptive AI. Book a demo today to discover how the Perx customer loyalty and engagement platform can elevate your brand strategy.

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4 Top Benefits of Loyalty Programs

Top 4 Benefits of Loyalty Programs

Give your business an edge in the current market by unlocking the potential of loyalty programs

Harwin Kaur

MarTech Blogger | June 23, 2023


Businesses often get swept up in the pursuit of new customer acquisition to boost brand awareness, expand their customer base, and drive up sales. While these are important goals, it’s equally important not to overlook the value of existing customers. It has been proven time and again that loyal customers contribute just as much, or even more, to a company’s overall profitability. 

Bain & Company, theorizes that a small 5% rise in customer retention rates can result in a significant 95% boost in overall profitability. This highlights the crucial importance of prioritizing the retention of existing customers for businesses that aspire to achieve long-term success and maximize their profits. This raises the question: how can businesses develop strategies to hold onto these customers? The answer is simple – implementing a loyalty program. 

However, before diving into the manifold advantages of such programs, it’s crucial to understand what a loyalty program is.

What are Loyalty Programs?

A loyalty program aims to cultivate repeat business by offering incentives such as discounts, reward points, or exclusive perks. Through this, businesses encourage continuous customer engagement with their brand. To create an effective loyalty program, businesses should prioritize customer preferences in their marketing efforts. This approach enhances customer satisfaction and builds long-term relationships, providing a competitive edge. Customers feel valued as they receive personalized rewards for their spending, making them more likely to pledge loyalty to the brand.

The term “loyalty program” is broad and can be customized to fit a business’s needs and preferences for its customer base. However, certain types of loyalty programs have been widely adopted with a proven track record of effectiveness. These include: 

  1. Points-based systems where customers redeem points earned for rewards such as discounts, free products, or exclusive experiences
  2. Tiered programs which allow customers to move up through different tiers based on their level of engagement with the brand, with each tier offering more exclusivity and valuable rewards
  3. Game-based programs where customers can engage with the brand to earn rewards by playing games or completing challenges 

Effective loyalty programs often adopt a hybrid system that combines different types of the above engagement tools and rewards to offer a more diverse range of benefits to customers. 

By implementing a loyalty program, businesses can leverage the fundamental factors that drive customer loyalty. A study by Bond Brand Loyalty found that loyalty program members are 70% more likely to spread the word about a brand than non-members. The proof is clear as day (or in this case, the statistics). Not only do customers receive rewards for promoting the business, but they also organically perform acquisition marketing on behalf of the business! 

Key Benefits of a Loyalty Program 

Now that we’ve established the significance and value of loyalty programs for businesses, let’s delve into some of the top benefits of implementing one.

◉ Cost-Effective Strategy 

Acquiring new customers typically involves investing a significant amount of resources in marketing and advertising campaigns to generate potential customers. This can include activities such as email marketing, paid search ads, and social media campaigns among other forms of promotion. Conversely, retaining existing customers entails providing them with a positive customer experience, personalized communication, and loyalty rewards to continue doing business with the company. 

Research shows that acquiring a new customer can cost 5-25 times more than retaining an existing one, depending on the industry and customer segment. Additionally, existing customers are more likely to make repeat purchases, refer others to the business, and spend more even during economic downturns. Therefore, boosting customer retention rates through loyalty programs can be a cost-effective strategy for businesses.

◉ Build a Customer Base that Values Your Brand Beyond Price

Customer loyalty programs help businesses differentiate themselves by connecting with customers’ emotions and offering a more personalized experience. Businesses can build a strong bond with their customers by gathering and acting on feedback, constantly communicating, and focusing on curating a pleasant customer experience, which demonstrates their value for the customer’s opinion. Giving customers that extra attention a personalized experience is particularly important in today’s market, where the ease of being able to compare prices between competitors has given rise to customers that are more price sensitive than ever. 

By appealing to customers’ emotions through customized rewards and recognition, businesses can build stronger bonds with their customers who feel appreciated and encourage repeat purchases. Loyalty programs encourage customers to become less price sensitive and focus more on the curated experience provided by the business. This will allow them to recognise the brand’s value and nudge them to pay a premium, thus giving the business a competitive advantage.

◉ Acquire Valuable Customer Data

An often-overlooked benefit of loyalty programs is that they provide businesses with an opportunity to gather valuable data about their customers. By tracking customer behavior and preferences through the program, businesses can gain insights into their customers’ purchasing habits, preferences, and interests. This information can help businesses tailor their marketing strategies to better meet the needs of their customers.

Additionally, the data gathered through loyalty programs can help businesses identify patterns or trends in customer behavior over time. This information can be used to make more informed decisions about future product development, pricing, and other relevant business strategies.

◉ Build Loyal Brand Ambassadors

Loyalty programs help to unlock the power of existing customers and turn them into committed brand ambassadors. They transform an average customer into a business’s most valuable asset – one that can spread the word about the brand and its products to their trusted network. This generates more revenue for a business through word-of-mouth recommendations than any advertising or marketing campaign can. 

Advocacy is the most powerful marketing tool. A loyalty program assists in creating a network of advocates that will not only stick with the business but also actively promote it. By providing incentives for referrals, a business can demonstrate the value it places on existing customers while attracting new ones. 

Factors to consider

Developing a successful loyalty program involves careful consideration of several areas: 

  • It is crucial to define the program’s primary objective, such as improving customer retention or driving sales. Setting specific and measurable goals will help to design a program that aligns with your business objectives.
  • Determining the program’s type is essential, whether it will be tier-based, game-based, or a hybrid, and make decisions regarding rewards in advance. This includes defining how customers can earn points or advance through different stages, as well as establishing clear guidelines for redeeming their rewards.
  • To ensure the success of your loyalty program, it is important to focus on effective promotion. Consider carefully strategizing your communication and marketing efforts to deliver a message that emphasizes the program’s benefits. This can be achieved through utilizing a range of marketing channels, including social media and email to create awareness and actively encourage customer participation.
  • Lastly, it is critical to consider setting a sustainable budget to ensure stability and avoid loyalty debt. This can be done by evaluating the estimated costs associated with implementing the loyalty program and calculating the expected return on investment. 

In conclusion, executing a well-designed loyalty program is crucial in allowing businesses to curate and expand a fiercely loyal customer base for sustainable success. Personalizing and tailoring the program to match the needs of its target audience is the key to its effectiveness.  

Consider starting your journey to a robust loyalty program with The Perx Platform, that promises to supercharge user acquisition and enhance customer retention rates. Request a demo today to witness all its unique features and functionalities, and explore how you can use them to your advantage!

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Best Ways to Reward Customers

Best Ways to Reward Customers in 2023

Re-invent customer rewards in today’s ever-evolving martech landscape

Harwin Kaur

MarTech Blogger | June 20, 2023


Throughout the course of business history, brands have relentlessly pursued the goal of customer satisfaction, recognizing its pivotal role in fostering long-term growth and prosperity. The benefits of achieving this objective are far-reaching and varied, spanning increased repeat business, positive word-of-mouth referrals, and enhanced customer loyalty.

Thus, it is to no one’s surprise that reward loyalty programs have become ubiquitous among businesses, from major players like Amazon, Walmart, and Sephora to small local ones. As a result, it can be daunting to find ways to differentiate your program and stand out from the crowd in a tangible and meaningful way.

Nevertheless, there are some unique and efficient ways to achieve this. Here is a curated list of 7 effective ways to reward your loyal customers in 2023.

1. Acknowledge Special Occasions

Customers feel more inclined to stay where they feel appreciated. One simple way for businesses to achieve this is by adding a personal touch to their loyalty program by acknowledging a customer’s special occasion like a birthday or an anniversary.

Customize your digital rewards system to keep track of important dates like birthdays, sign-up anniversaries, and any other relevant ones.

Doing so will allow you to curate personalized incentives that cater to their specific preferences based on their previous purchases.

Research by Epsilon shows that 80% of consumers are more inclined to make purchases when offered a personalized experience by brands.

Giving rewards, such as discounts or free gifts, to commemorate customers’ special occasions is an effective way to build a personal connection with them that extends beyond the generic annual holiday sales.

2. Reward Consistency

One of the biggest hurdles in providing discounts to customers is deciding the appropriate amount and to whom to offer these. However, businesses can overcome this challenge by identifying customers who have exhibited loyalty to their brand and regularly make purchases. Thanks to a variety of analytical tools and algorithms at our disposal today, identifying these customer segments is easier than ever before. 

By providing incentives, such as discounts, businesses can encourage customers with a proven track record of purchases to continue doing so while simultaneously building a more devoted customer base. For instance, businesses can consider rewarding customers when they achieve specific spending milestones or maintain a minimum frequency of purchases to appreciate the consistency of these customers.

Encouraging reviews and referrals can be a powerful strategy for increasing customer engagement and expanding your customer base. As the current landscape becomes increasingly saturated with marketing and advertising campaigns, word of mouth remains a valuable and trusted marketing tool. A study by McKinsey found that word of mouth is the primary factor behind 20-50% of all purchasing decisions.

Positive reviews and referrals can help establish trust between your business and potential customers, highlighting the best aspects of your brand.

Offering incentives like discount vouchers, cash rewards, or services can be an effective way to get customers excited about spreading the word.

3. Offer Exclusivity 

A creative way to reward customers is by providing them with a unique and exclusive experience, beyond just physical rewards or discount vouchers. By granting early access to sales exclusively to loyalty program members, they are given the first opportunity to purchase products and services at discounted rates before they are available to the masses.

Taking it a step further, businesses can also consider offering limited experiences, such as invitations to exclusive product launch events or auctions that cannot be simply purchased. Such initiatives make loyal customers feel valued and appreciated, creating a special bond with the business, and increasing the likelihood of them returning.

4. Partner with Merchants

Partnering with businesses serving the same customer segment is often overlooked as a key strategy to boost customer acquisition, resulting in a seamless and beneficial experience for all stakeholders.

A well-designed loyalty program allows you to offer customers an enjoyable customer journey. However, when you forge partnerships with businesses that cater to a similar customer segment, you create a comprehensive experience that expands beyond just what your business has to offer and covers a lot more ground. 

A partnership with other businesses broadens the range of rewards you are able to offer customers as well as allows you to increase customer acquisition by tapping on the customer base of your partners. Through strategic alliances within a loyalty program, you provide customers with a seamless and unified journey that benefits all stakeholders involved.

One of the biggest hurdles in providing discounts to customers is deciding the appropriate amount and to whom to offer these. However, businesses can overcome this challenge by identifying customers who have exhibited loyalty to their brand and regularly make purchases. Thanks to a variety of analytical tools and algorithms at our disposal today, identifying these customer segments is easier than ever before. 

By providing incentives, such as discounts, businesses can encourage customers with a proven track record of purchases to continue doing so while simultaneously building a more devoted customer base. For instance, businesses can consider rewarding customers when they achieve specific spending milestones or maintain a minimum frequency of purchases to appreciate the consistency of these customers.

5. Gamify Rewards System

Gamifying rewards refers to incorporating game-like elements, such as challenges, achievements, and levels, into a rewards system to enhance customer engagement and motivation. For example, prompting customers to play simple games like ‘Scratch-A-Card’ or ‘Spin-The-Wheel’, to unlock their rewards adds an additional layer of excitement.

An advantage of gamifying rewards for loyalty programs is that it enhances customer engagement and motivation.

By incorporating game elements such as challenges, points, levels, and rewards, businesses can make the loyalty program more enjoyable and interactive for customers. 

It provides a welcome break from the monotony of simply pressing a singular button. This gamified approach taps into the natural human inclination for competition, achievement, and fun, leading to heightened participation and a deeper relationship between customers and the brand. This reinforces their loyalty to the business.

6. Offer Customers Options

Giving customers multiple options and allowing them to choose when providing rewards for loyalty programs aids in empowering them and catering to their individual preferences. By offering a range of reward options, businesses acknowledge the diverse needs and desires of their customers instead of allocating prizes that may leave some feeling dissatisfied. Diversifying the way rewards are presented through different games in one way to do so.  Another way would be to analyze the preferences of the customer and present them with different types of rewards like a voucher as opposed to a free gift.

This approach fosters a sense of autonomy and personalization, enhancing the overall customer experience. It also increases the likelihood of customers finding value in the rewards they receive, resulting in higher satisfaction and a deeper level of appreciation for the brand.

Why is it necessary to be innovative?

The importance of finding innovative ways to issue customer rewards cannot be overstated. By embracing creativity and constantly evolving reward programs, businesses can cultivate strong and lasting relationships with their customers. Innovative rewards not only drive customer satisfaction and loyalty but also differentiate a company from its competitors, boosting its brand reputation and market position. 

In conclusion, the implementation of innovative approaches enables businesses to gather invaluable data and insights, facilitating the customization of their offerings and marketing strategies with greater efficacy. Ultimately, by prioritizing innovation in customer rewards, companies can unlock unexplored potential and boost customer loyalty. To achieve this, consider The Perx Platform which empowers businesses to transform transient and fleeting customer interactions to meaningful relationships by leveraging behavioral science and gamification to enhance customer engagement and loyalty. Book a demo today to learn more about how the Perx customer loyalty and engagement platform can elevate your loyalty program.

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Best Incentive Ideas to Promote Positive Customer Behavior

Top Reward Ideas to Promote Positive Customer Behavior

Brands that provide unique incentives beyond run-of-the-mill loyalty programs can leave a lasting imprint on customers

Dharsh Kannan

MarTech Blogger | June 16, 2023


Imagine walking into a coffee shop and being greeted with a warm smile and a surprise reward for being a loyal customer. The barista hands you a small card with a handwritten note thanking you for your patronage and offering you a free drink of your choice on your next visit. This simple gesture not only makes you feel appreciated but also motivates you to continue supporting the business.

By offering incentives beyond the typical loyalty program, businesses can create a memorable customer experience and foster a strong relationship with their clients. These incentives don’t have to be extravagant, but they should be thoughtful and tailored to the individual customer to create a sense of personalization and exclusivity. Ultimately, these small gestures can have a big impact on customer engagement and loyalty, leading to long-term success for businesses.

Customer Incentives: What are They?

Picture this: you’re a customer on a quest, and every time you achieve a milestone or complete a task, the brand rewards you with incentives. These rewards act as a powerful motivator, tempting you to take on more brand-building challenges, such as purchasing their products, spreading the word to your friends, or even becoming a brand ambassador.

The brand carefully curates these incentives based on its marketing objectives and customer data analytics, ensuring they’re providing the most value to its customers. But don’t be fooled – loyalty and incentives are not one and the same.

While both are valuable tools in a brand’s arsenal, loyalty is a deep-seated emotional connection between a customer and a brand, whereas incentives are more of a fun and exciting way to encourage engagement. So let’s dive deeper into the differences between these two essential brand-building strategies.

Loyalty Programs vs Customer Incentives

Loyalty programs and incentive programs, despite often being used interchangeably, have unique functions. Loyalty programs are intended to reward and keep existing customers, while incentive programs are aimed at boosting sales by rewarding customers who achieve predetermined goals.

While both programs offer rewards like gift cards and coupons, incentive programs may offer more valuable rewards, such as merchandise or travel vouchers, to build stronger customer loyalty. Loyalty programs reward customers for every transaction, while incentive programs only deliver rewards when specific targets are met. Depending on the brand’s objectives and desired level of customer involvement, one or both programs may be utilized.

How Customer Incentives Can Boost Customer Loyalty Programs

Implementing a customer rewards program offers numerous benefits, such as increasing customer retention and generating referrals to your brand. Below are some of the advantages you can expect by offering the appropriate incentives to your customers.

• Customer Satisfaction

By offering incentives to your customers, you demonstrate your appreciation for their choice to buy from you. This fosters a sense of satisfaction and loyalty that keeps them coming back for more of your products or services. However, it’s crucial to ensure that your consumer incentive rewards are targeted toward the right customers. By identifying and catering to the needs of your most valuable customers, you can maximize the impact of your rewards program and further strengthen customer loyalty.

A thriving marketing strategy relies on the foundation of data and analytics, but gathering data can be a challenging endeavor. 

Implementing an incentive program can facilitate data accumulation, which in turn can be leveraged to create a targeted marketing program that resonates with your desired audience.

By using this approach, you can craft more compelling incentives that align with your potential customers’ preferences, resulting in greater appeal and engagement.

• Customer Retention

It’s a well-known fact that retaining current customers is much less costly than acquiring new ones. By offering suitable incentives, you can cultivate customer loyalty and ensure they remain committed to your brand in the long term.

To keep customers interested and encourage repeat purchases, consider offering attractive rewards. Additionally, using the consumer data you collect can help you tailor rewards that are more personalized, which ultimately leads to better customer retention.

• Word-of-Mouth Marketing

An effective incentive program can ignite enthusiasm among customers, prompting them to become brand advocates and spread the word to their network. This type of incentive strategy can be particularly valuable for lead generation, as these leads can be cultivated into loyal customers through engaging brand-building activities.

Top Reward Ideas to Adopt for Your Loyal Customers

Here is a curated list of options to help you adopt a unique customer incentives strategy that will help you stand out from the crowd.

1. Incentivizing Referrals

Referral programs are a popular method for brands to implement incentive strategies. Customers who refer other customers or assist with lead generation are incredibly valuable. By providing incentives for these customers, you can create a loyal group of brand advocates who will enthusiastically promote your brand to a wider audience.

2. Exclusive Access

Offering exclusive or early access to sales is a powerful customer incentive. Customers appreciate being treated as VIPs and having the opportunity to purchase products or services before they become widely available. This incentive can create a sense of excitement and urgency, driving sales and fostering a sense of loyalty among customers.

3. Free Shipping

Free shipping is a popular incentive program among many brands, as customers are often deterred from purchasing products due to high shipping costs. By offering free shipping, brands can encourage customers to make repeat purchases and build loyalty. This strategy can help brands increase sales and create a positive customer experience.

4. Discounts

Discounts are a popular incentive for motivating customers to make a purchase by offering lower prices. However, they can sometimes negatively impact a brand or product’s perceived value if overused or too widely available. When used strategically and sparingly, discounts can still be a powerful tool to increase customer value and drive sales.

5. Sweepstakes

Sweepstakes are an enjoyable and cost-effective method to engage with customers. A well-designed sweepstake can motivate customers to take a smaller step, such as making a purchase, signing up, or attending an event. With numerous incentives to choose from, it can be challenging to select the right ones. Brands should engage customers by offering a combination of incentive types, including a blend of published and unpublished rewards.

6. Subscription

Brands frequently encounter difficulties with registrations and subscriptions. One effective approach to promote customer subscriptions is by providing an incentive for subscribing to your brand. Subscriptions can also serve as an incentive in themselves. An effective method is to extend a discount or exclusive offer solely to subscribers. By presenting a reduced price or a special deal, brands cultivate a feeling of exclusiveness and value for subscribers, heightening the appeal for customers to join.

Loyalty Points system

Loyalty points incentivize customers to return and make repeat purchases, which helps businesses build a loyal customer base. Redeeming loyalty points for rewards provides a tangible benefit to customers and makes them feel recognized and rewarded for their loyalty. Loyalty programs can also increase customer engagement and spending by offering bonus points for larger purchases or specific products.

Maximize Your Loyalty Program With Effective Incentives 

It’s essential to understand the importance of satisfying your customers and providing them with compelling reasons to remain loyal. The question is, what incentives will work best to achieve this goal? Work with your team to brainstorm ideas for rewards, referral marketing campaigns, incentive programs, and effective examples of reward programs that can benefit your business.

Take your time with this process and be willing to experiment with different campaign concepts. Creating a successful loyalty program requires paying close attention to critical factors like gamification and personalization, which can significantly impact customer engagement and retention.

Neglecting these elements can hinder your progress. To optimize your customer incentive program, consider using The Perx Platform. This cost-effective solution can supercharge user acquisition, in-app engagement, and reduce churn. Book a demo today to learn more about how The Perx customer loyalty and engagement platform can elevate your incentive program and improve customer retention.

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Design customer centric campaigns for enhanced Loyalty

RETAIN & GROW

Tailor related-product recommendations to match spending preferences

Our tailored use-case empowers businesses to leverage spending preferences and deliver personalized related-product recommendations, captivating customers with relevant offerings that foster loyalty and drive long-term revenue

Shalley Mohta, Customer Engagement Strategist

Journey Popularity Index: 

The Rationale

By tailoring related-product suggestions, businesses can enhance the customer experience, increase engagement, and create a strong incentive for customers to continue their purchasing journey, resulting in improved customer retention and ultimately driving revenue growth

The Benefits

By tailoring related-product recommendations to match spending preferences, businesses can create a personalized and seamless shopping experience, leading to higher customer satisfaction and loyalty. This, in turn, increases the likelihood of repeat purchases and drives revenue growth

Ideally Suited For

Industry: Banking, Telecom
Customer base: > 100k user base
Mobile app: Not Required
Existing Loyalty program: Not a must

Key Performance Indicators

Reduce churn and inactive customers

Nudge for Customer Action

Jolene receives an SMS nudging her to use her Prospera debit card for an instant reward

1

Customer Action 1: Online Transaction

Enticed by the reward, Jolene uses her Prospera bank card during checkout payment on a retail app

2

Reward for Online Transaction

After the transaction, Jolene receives an SMS with a link to access her reward

CUSTOMER RETAINED

3

Engagement through Gamified Reward Experience

On clicking the link, Jolene is taken to the Prospera app and sees a gamified reward experience

4

Instant Gratification

Jolene engages by moving her phone on multiple axes to land the ball in a slot of her choosing

5

Cross-selling Related Product

Because of her online payment on a retail app, Jolene receives an SMS from Prospera bank, offering her a new credit card with huge benefits for retail purchase

6

Customer Action 2: Credit Card Application

Jolene immediately applies for her new credit card to maximize her benefit on retail transactions

CUSTOMER GROWTH

7

Nudge for Next Action

After a few days, Jolene receives her credit card, nudging her to make her first transaction and win a reward

8

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Secure customers and influence actions through dynamic experiences

ACQUIRE & ACTIVATE

Present personalized offers by understanding customer needs

At Perx, we revolutionize the digital banking experience by seamlessly integrating personalized rewards into our app, thereby enticing users with exclusive offers tailored to their financial goals and spending patterns

Amrith G, SVP | Marketing & Customer Analytics

Journey Popularity Index: 

The Rationale

By tailoring offers to individual preferences and needs, businesses can establish stronger connections with their customers, fostering a sense of exclusivity and personalization.

The Benefits

This approach not only improves customer satisfaction but also increases the likelihood of repeat purchases, brand loyalty, and positive word-of-mouth recommendation

Ideally Suited For

Industry: Industry: Banking, Telecom
Customer base: > 100k customer base
Mobile app: Not Required
Existing Loyalty program: Not a must

Key Performance Indicators

Acquire and onboard customers

User Search

Jolene is in need of a new credit card and searches for best offers

1

In-market Audience Targeting

As Jolene is in-market for buying a credit card, she sees a Perx-powered ad for a quick survey to collect details on her spending habits in return for a reward

2

Customer Action 1: Survey Completion

Enticed by the reward, Jolene proceeds to fill up the survey and shares details like her annual income, spending habits etc

3

Instant Reward for Customer Action

After filling the survey, Jolene receives a Perx-powered SMS with a link for her reward

4

Personalized Offer Presented to User

Because of preferences captured in the survey, Jolene is now part of an audience that receives a new personalized credit card offer from Prospera Bank

5

Customer Action 2: Credit Card Application

As the offer is tailored to Jolene's preferences, she immediately sees value in the credit card offer and proceeds to apply for the same

CUSTOMER ACQUIRED

6

Nudge for Using New Card

Once her application has been approved and she receives her card, Jolene also receives a Perx-powered SMS nudging her to use her card for a purchase

7

Customer Action:
First Transaction on Card

Excited by a reward, Jolene makes her next online payment using her new Prospera card

8

Instant Gratification through Gamified Reward Experience

After the transaction, Jolene receives an SMS with her reward. On clicking the link, Jolene lands on a gamified reward tailored via a digital pinata. By tapping on the screen and breaking the pinata, she saves the reward in her digital wallet

CUSTOMER ACTIVATED

9

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