A reward program, where your customers earn points based on purchases or when they fulfill some kind of achievement, can be a simple and effective way to build strong bonds of loyalty between your brand and your most frequent customers.
Such a program can also provide a win-win scenario where it gets more affordable for your customers to stay loyal to your brand. This article is about how it works in Engage and some key factors to consider before launching a reward program.
With the help of Engage, your customers can either receive a voucher or a special offer when reaching a certain number of points—you decide. Earned points can also be used to calculate member levels like this to make a person eligible for even more kinds of unique offers.
The way you choose to reward your customers when they reach a certain number of points is only limited by your imagination, but here are some common examples:
- Free shipping
- Access to special content or events
- Access to Double Points Shopping Days
- Members exclusive offers and discounts
How it works in Engage
Reward points can be assigned through several different routes in Engage:
- Based on purchase amounts calculated on receipts
- Through an achievement such as: “Purchase product X and get 100 reward points” or “Write a review and get 100 reward points”
- Manually, for instance by your customer support agent as a compensation
Your customers' current reward point status and history is stated/displayed on their contact cards and may be used for creating segments for campaigns.
Key considerations
Before you can launch a reward program, there are some key factors to think through:
- How many points should a customer receive for every 1 out of your default currency? Example: 1 reward point for each Euro
- When should an earned reward point expire? Example: never, rolling, or per calendar year?
- How should returns affect the total amount of points earned?
- Are there any products or transactions you would like to exclude from earning reward points?
- How should reward points be transformed into a currency or voucher that your customers can redeem in your store(s)? Find more info on this topic here.
- Through a fixed percentage: when the decided minimum of points is reached a reward voucher is calculated in Engage based on % of earned points. Example: if you set the calculation rate to 5 %, and a customer has earned 1,000 reward points, they receive a voucher for 50 Euro (if Euro is your default currency).
- Through a tabled model: a fixed value will be applied to a reward voucher when a set number of points has been earned.
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