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The modern customer is smart and demanding. They know many businesses compete for their attention, so they expect you to appreciate them for their loyalty. That’s where a points reward system comes in.
A points reward system lets you show your customers you value their dedication and trust. Each time they visit your business, they can earn points and redeem them for specific rewards when they reach the point threshold. It shows you respect them and encourages them to keep coming back.
A points reward system can also boost customer engagement by giving them continuous interaction incentives. Research shows that over 80% of consumers prefer businesses with loyalty programs, making a points reward system excellent for your customers and bottom line.
You can implement a points reward system with PassKit, our loyalty program management software. You can create digital coupons, loyalty program cards, or loyalty membership cards with a few clicks and set up your automated loyalty program in minutes.
Customers can store these loyalty cards in Apple and Google Wallet. They can use digital cards to earn points whenever they visit your business location and enjoy a contactless shopping experience.
Try PassKit for free for 45 days.
In this article, we will cover everything you need to know about points reward systems, share 18 tips to manage one and explain how to use PassKit for your loyalty program.
What is a points reward system?
The points-based rewards system is a marketing tool that helps customers save on purchases. By earning points for every purchase, they can redeem accumulated points for discounts or gifts.
The more a product or service costs, the more points they will earn, so it’s a great way to save on high-value items. It automatically increases sales and profits for your business.
Companies with tiered loyalty programs allow customers to accumulate points to reach a higher rank. Customers may get benefits such as limited edition products, early access to new products, or exclusive sales and discounts as they move up the ranks.
The most loyal customers can become VIP members and get the best benefits. VIP members may have a dedicated customer service team, invitations to exclusive events or other perks unavailable to regular customers.
Five benefits of a points reward system
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A point reward program has many benefits for your business. You can:
- Retain loyal customers: Losing customers is costly. You can develop a relationship with loyal customers through a point reward system. They will stay and are more likely to buy again.
- Engage employees: A points reward system can encourage employees to improve job performance. This approach combines tangible benefits, such as redeemable points, with personalized praise to create a more engaging work environment and establish a culture of recognition within the organization.
- Attract new customers: A good loyalty program expands your customer base. Rewards and offers will attract everyone to your business.
- Increase customer loyalty: According to research, 60% of global consumers are more loyal to a brand because of loyalty programs. They get their money’s worth with every purchase because of your rewards.
- Collect customer data: A digital point reward system collects data from every member. Loyalty program data helps you understand your customers and their needs and wants.
Now, let’s share the key steps for starting with a point-based reward system.
How to start with point based reward system
Rewarding customers should be your top priority now. It can help you differentiate yourself from others:
- Launch a loyalty program that’s easy to understand and join
- Estimate how many points you will allocate for rewards
- Determine how many points customers will redeem each month
- Build relationships with shoppers
- Reward buyers regularly
- Engage consumers by sending targeted messages
- Measure your customer loyalty program performance
- Track key metrics
- Optimize your program based on the results
A points reward system can improve the overall customer experience.
Following consumer trends and customer needs is easier with a points program.
How to manage a points reward system with PassKit
PassKit is the leading mobile wallet service provider for businesses that want to unify customers’ online and offline experiences and reward them for their commitment.
As one of the best loyalty program apps, PassKit makes creating and managing a points reward system easy so you can surprise your shoppers with loyalty rewards they’ll love.
It helps you create, manage, and distribute diverse digital passes your customers can store and use with mobile wallets whenever they are at your business.
They can collect points with a few taps on their mobile devices and get rewards that will help them save money, encouraging them to return to your brand.
With PassKit, you can turn any loyalty program into a marketing machine.
Read on to find out how.
Sign up and start a 45 day free trial
PassKit simplifies customer onboarding with a quick setup process – forget custom app building or long design process. PassKit gets your loyalty program up and running in minutes. Sign up and use the 45 day free trial to try PassKit and see how this loyalty system works.
After your trial ends, our pricing model adapts to your usage. You’ll pay based on the number of loyalty cards you actively use. As your usage increases, you’ll automatically receive discounts, ensuring you always pay a fair price matching your business’s growth and needs.
Create a digital loyalty card, membership card or coupon
Traditional loyalty cards, membership cards or coupons are so last season. Digital loyalty cards can increase customer engagement since people are glued to mobile devices. Use PassKit to launch a loyalty program that integrates with Google and Apple Wallet.
Contactless shopping has been popular since COVID-19. We give customers what they want by delivering your points reward system to their mobile wallets.
Our loyalty card templates are Android and iOS compliant, so your reward cards look great on mobile devices.
Personalizing your loyalty cards is easy. You can add your company branding by adding your logo and brand colors. Add custom fields that show individual customer information to make the cards more relevant to each customer.
For extra functionality, you can add QR codes or barcodes to the card design so customers can scan them at the point of sale or for tracking purposes.
Visit our Pass Designer to learn more.
Distribute your loyalty cards online and offline
Multichannel distribution increases customer reach and helps you stand out from competitors. It ensures you connect with customers across all brand touchpoints.
PassKit has a multichannel distribution system where you can share your points reward system with:
- SMS marketing
- Email marketing
- Social media
- Receipt marketing
- Company website
- In-store advertising
- POP marketing
- Retail marketing
- Search marketing
- Location-based marketing
- Permission-bassed marketing
- NFC payment
Use PassKit so customers never forget about your brand.
Start a 45-day free trial now.
Track your redemption rates
As we said, tracking your point based reward system performance is key. That’s much easier with PassKit and our advanced customer loyalty analytics, which gives you valuable consumer insights.
We track and collect various data – from the number of members enrolled to the number of digital passes installed and uninstalled.
You can track your results across different periods and see which mobile wallets and distribution channels are performing best to boost your sales and marketing.
Provide an exceptional customer experience
Providing a unified online and offline customer experience is more important than ever. Customers expect a seamless journey no matter which channel they’re using, and it’s up to your businesses to deliver.
That’s where PassKit comes in. We help businesses deliver a frictionless, connected, seamless customer experience offline and online through our QR code loyalty program.
We connect your online and physical stores with Google Wallet and Apple Wallet. With PassKit, the points reward system works the same regardless of which channel your customers use.
Start a 45-day free trial now.
18 tips to manage your points based reward system
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There is no one-size-fits-all way to manage points-based reward systems, but there are some rules to follow.
1. Have a goal in mind
Every points based rewards system should serve a business goal. That’s the only way to make it work. Without a clear objective, your points system won’t stand out.
What are your loyalty program objectives? For example:
- Boost sales
- Increase user retention
- Improve customer acquisition
Whatever the goal, you will achieve it faster with a reliable points reward system like PassKit.
2. Don’t overcomplicate things – keep it simple!
A simple points reward system can make a big difference to the user experience. The action and goal is clear to members. They know how many purchases to make to get a reward.
Physical loyalty cards aren’t transparent. They only show the customer name and card number. Shoppers have to go out of their way to find out their point balance.
That’s why you need loyalty customer cards made with PassKit. No custom app building – just log in to manage your points based reward system.
3. Decide what rewards to offer
Remember, reward points and incentives are why people join loyalty programs. They need to see your value to choose your program over others.
Knowing your customer’s preferences will help you determine what rewards to offer. PassKit provides all relevant loyalty program data to help you make this decision.
4. Award points for every purchase
Allow customers to earn points on every purchase, no matter what they buy. It will show customers you value them and their business and are willing to reward them for their loyalty.
Customers will be more likely to return to a business that offers this kind of system and recommend it to their friends and family.
5. Set up points milestones and expiration dates
Implement a tiered loyalty program. Customers can move to a new tier based on spending milestones. They can get different incentives based on their rank. It makes your points reward system more attractive.
Setting up points milestones can increase customer engagement big time.
You can also set an expiration date for reward points and vouchers. Give customers plenty of time to redeem them.
6. Inform customers of the rewards
You can create marketing messages to communicate with customers who are part of your points based rewards program. Those messages should promote your rewards so customers know what to expect when they earn enough reward points.
7. Train employees on the points reward system
You can dedicate a day (or more) to review the chosen rewards platform with your team. Show them how to find a member, register a transaction, redeem vouchers, and use a referral code.
You can also save time by choosing a user-friendly loyalty platform provider like PassKit. It’s so easy to use that your team can start using this software in minutes.
Start your 45-day free trial to try it out.
8. Target different types of customers
Loyalty program succeeds when you know:
- Consumers (age, gender, location and more)
- Buying habits and preferences
- Current trends
- Competitors
Gathering customer data is hard; you can only expect this feature from advanced customer loyalty apps.
PassKit has advanced analytics to help you learn more about your customers and their preferences, including their engagement with your program, favorite mobile wallets and distribution channels to personalize your offers and improve customer communication.
9. Get creative with your redemption options
When redeeming points, customers should have plenty of options. Allow them to choose the reward that best suits their needs and preferences.
Some popular redemption options are discounts, free products and vouchers.
Another thing to remember is the redemption process should be simple. No one wants to jump through hoops to redeem their rewards. Make it easy for customers, and they’ll be more likely to participate.
10. Rotate rewards to keep customers interested
If you want to keep your loyalty points based program fresh and maintain customer interest, try rotating the monthly rewards you offer. It will keep your customers engaged as they’ll have something to look forward to. Different rewards will encourage customers to continue spending on your products or services.
11. Offer bonus points for special occasions or holidays
Giving customers bonus points for special occasions is a great way to show customer appreciation and let them know you value their business. They’ll enjoy the gesture and will continue to do business with you.
Birthdays and holidays are the perfect time to offer bonus points as people spend more on these occasions. You’ll give them an extra reason to come back for more.
12. Make it fun for customers
It’s no secret loyalty programs can get dull. After a while, customers will forget about your program altogether. That’s why more and more companies are gamifying their loyalty programs to boost customer engagement.
Gamification includes using game-like elements to make loyalty programs more fun and engaging. For example, customers can earn extra points by playing a game on your company’s mobile app. Purchases are no longer the only way to earn points.
It’s a great way to keep customers interested in your loyalty program and can lead to more loyalty and repeat business.
13. Allow customers to track their points and rewards
A digital rewards system makes it easy for customers to track their points and rewards. They can check their account balance anywhere at any time.
It’s more convenient than a traditional loyalty program where customers have to visit the business to use the card and check their balance before redeeming rewards.
14. Track points earned and redeemed by each customer
Tracking points earned and redeemed by each customer in a loyalty program is crucial to understand customer behavior. It allows you to see how customers interact with the program and what rewards they like.
If customers aren’t using a particular offer, it’s time to change it to another one. It keeps the loyalty program fresh and relevant for customers.
15. Promote your points reward program online and in-store
It helps increase customer awareness so everyone knows about the program and how it works. In-store, you can create posters that explain the program in detail, and online, you can create ads that link to a landing page with more info.
By making it easy for customers to learn about the program, you’ll increase their chances of using it.
16. Stay up to date with trends and changes in your loyalty program
To keep your loyalty program relevant and successful, you must monitor customer trends constantly and use the findings to make changes and improvements.
It’s crucial now because of the ever-changing trends. What works today may not work tomorrow, so you must always look for new movements in the loyalty landscape. It’s the only way to stay ahead of the game.
17. Use a points management system to track and manage points
PassKit can help you track your redemption rates and manage customer data. Our system collects data automatically, so you don’t have to do anything manually. It’s a huge time saver, especially if you have a lot of data to track.
PassKit presents all the data in one place so you can see your performance quickly and make sure your rewards program runs smoothly.
18. Congratulate your customers
Points based systems help you build a community. Celebrating successes can increase customer loyalty as every customer is a valuable member who feeds your business growth. Thank every member for their trust and loyalty by celebrating your success with them.
Four ways to use a points reward system for customer loyalty
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Business loyalty cards allow you to interact with customers across different digital channels. Here are some ideas to increase customer engagement with a loyalty points program:
- Surprise and delight: Businesses reward customers when they earn points, but it may take some customers a while to earn them. Give customers an unexpected gift.
- Recognize milestones: Customers can visit your online or physical store and get a discount or gift on their birthday. Employees can tell them about this special offer.
- Send targeted offers: The best points reward system gives great customer insights. It allows you to create a personalized customer experience and send offers based on purchase behavior.
- Offer an omnichannel experience: Let customers interact with your business across multiple devices. With PassKit, you can set up a multichannel distribution system that reaches customers via email, SMS, social media or other channels.
Now that you know how to engage customers with your point system, let’s see what rewards to give.
What rewards do customers want?
We’re being honest – customers join your loyalty program for the incentives. Reward points allow them to buy their favorite product or service at a lower price. No surprise they sign up.
A loyalty program is key to customer engagement and retention. It should be well branded and recognizable, with points and rewards structure being crucial for motivation and customer satisfaction.
What do they expect to get? Customer feedback will help you determine the most popular rewards. Here are some ideas:
- First purchase discount: New customers need incentives to come back. Give them a discount on their first purchase to bring them in.
- Free products: Most rewards programs surprise customers with free products. You can give out your bestsellers or products you are about to launch.
- Special offers: Come up with discounts customers can use online and in-store to create a seamless customer experience. Don’t separate these two channels.
- Birthday gifts: Everyone wants to feel special on their birthday. Use a points based reward system to send gifts to customers automatically and show you are thinking of them.
- Refer-a-friend gifts: Referrals get you new members. Give customers the chance to earn reward points or gifts by referring friends. They will do that because of the incentive!
PassKit supports your points based system and lets you offer any reward you want. Our platform allows you to build and design a successful loyalty program without involving your IT and design teams.
Bring your rewards to any mobile wallet and get customers to your brand with PassKit.
Do employees need to be trained to use the points reward system?
Your employees are the face of your brand. They are the ones who will be interacting with customers every day. You need to train them on how to use the points based rewards system. Otherwise you will lose customers who get frustrated with the process.
Ensure your employees know everything about the system from account registration to checking point balances. Hold a training session so they can ask questions and understand how it all works. Proper training will boost employee engagement. With a trained staff you can keep your customers happy and coming back.
Point based reward system: The bottom line
Customers want to feel appreciated. A points based reward system will strengthen customer loyalty by showing you value every dollar they spend on your products or services.
A digital points based reward system is the way to go.
Customers have ditched their physical credit cards for Google Wallet and Apple Wallet. Use this trend with PassKit and get your loyalty program to their mobile devices.
