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The modern customer is savvy and discerning. They know that many businesses are vying for their attention, so they expect to be treated with appreciation. It is where a points reward system comes in handy.
By implementing a points reward system, you can show your customers that you value their loyalty and trust. Each visit to your business helps them earn points they can redeem for specific rewards. It shows your appreciation and encourages them to continue doing business with you.
According to research, over 80% of consumers prefer companies that offer loyalty programs. A points rewards system is an excellent solution for your customers and your bottom line.
You can implement a points reward system today and build better customer relationships using PassKit, our customer loyalty software. It allows you to create coupons, loyalty cards, or digital membership cards in just a few steps and set up your points reward system in just a few minutes.
Customers can store their loyalty reward cards in Google Wallet and Apple Wallet and enjoy contactless shopping and a connected customer experience. They can use digital cards to earn points whenever they are at your business location. When they reach the point threshold, customers can redeem rewards which ultimately increases their satisfaction and loyalty.
To see how PassKit works, sign up for a free 45-day trial.
In today’s article, we will explain all the essentials of a points reward system, share 18 helpful tips for managing one, and show how to use PassKit for your point-based reward system.
What is the points reward system?
Most businesses implement a points-based rewards system to increase sales and loyalty among their customer base. This strategy encourages consumers to spend more money with the company to earn rewards points, which they can redeem for various perks and benefits.
The points reward system is an excellent way for customers to save money on their purchases. By earning points for every purchase, they can eventually redeem those points for discounts or gifts. The more a product or service costs, the more points the customer will earn, making it a great way to save money on high-value items.
Companies that offer tiered loyalty programs allow consumers to accumulate points to achieve a higher rank. As customers move up the ranks, they may enjoy benefits such as limited edition products, early access to new products, or exclusive sales and discounts.
The most loyal customers can become VIP members and enjoy the highest benefits. VIP members may have access to a dedicated customer service team, invitations to exclusive events, or other perks.
4 benefits of a points reward system
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A point rewards program brings many benefits to businesses. You can:
- Retain loyal customers – losing customers is expensive. You can nurture a relationship with your loyal customers through a point reward system. Not only will they stay, but they are more likely to make repeat purchases.
- Attract new customers – a great loyalty program expands your consumer base. Enticing rewards and attractive offers encourage everyone to be part of your business.
- Increase customer loyalty – according to research, loyalty programs make 60% of global consumers more loyal to a brand. They get their money’s worth with each purchase because of your rewards.
- Collect customer data – a digital point reward system collects data about every member. Loyalty program data helps you understand customers and satisfy their needs and wants.
Let’s now see why you should launch a point-based rewards system.
6 reasons to start with a point-based reward system
Rewarding customers should be your top priority now. It can help you stand out from your competitors. You should leverage this system to
- Launch a loyalty program that is easy to understand and participate in
- Measure the impact of your customer loyalty program and track metrics
- Manage a rewards program that adapts quickly to changes
- Show your appreciation for customers by giving them rewards
- Boost engagement by sending targeted messages to consumers
- Establish a meaningful bond with shoppers
Following consumer trends and responding to customer needs is easier with a points program.
4 ways to use a points reward system to engage customers
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Loyalty cards for businesses allow you to interact with consumers on different digital channels. Here are some ideas to increase customer engagement:
- Offer unexpected rewards – businesses usually reward customers when they earn points. However, it may take some consumers a while to earn them. Give customers an unexpected gift to surprise and delight them.
- Acknowledge milestones – customers can visit your online or physical store and receive a discount or gift on their birthday. Employees can let them know about this special promotion.
- Send personalized offers – the best point reward system offers excellent customer insight. It enables you to create a personalized customer experience and send offers based on consumer spending habits.
- Provide an omnichannel experience – enable customers to engage with your business across numerous devices. With PassKit, you can establish a multichannel distribution system that reaches consumers by email, SMS, social media, or other channels.
Now that you know how to engage consumers with your point system, let’s see which rewards you should consider giving.
What rewards are most popular with customers?
We’ll be honest – consumers join your loyalty program because of incentives. Reward points allow them to purchase their favorite product or service at a lower price. It’s no surprise that they sign up for membership then.
Which rewards do they expect to receive? Here are the most popular ones:
- First purchase discount – new customers need incentives to come back. Offer them a discount on their first purchase to draw them closer.
- Free products – most rewards programs surprise consumers with free products. You can give out your bestsellers or products you plan to launch soon.
- Special offers – come up with discounts customers can use both online and in-person to create a connected customer experience. Separating the two channels would be a mistake.
- Birthday gifts – everyone wants to feel special on their birthdays. Use a points-based reward system to send gifts to consumers automatically and show you are thinking of them.
- Refer-a-friend gifts – referrals ensure you get new members. Give customers a chance to receive reward points or gifts by referring friends. They are more likely to do that because of the incentive!
PassKit supports your points-based system and enables you to offer any reward your want. Our platform lets you develop and design a loyalty program without the help of the IT and design teams. Bring your rewards to any mobile wallet and attract consumers to your brand with PassKit.
Do employees need to be trained to use the point reward system?
Your employees are the face of your brand. They are the ones who will be interacting with customers daily. They must be adequately trained on how to use the points-based rewards system. Otherwise, you will lose customers who become impatient with the process.
Ensure your employees understand everything about the system, from account registration to checking point balances. Hold a training session so they can ask questions and better understand how it all works. With a well-trained staff, you can keep your customers happy and coming back for more.
Since we covered all essentials of a point rewards system, let’s share valuable tips on managing one.
18 best tips on managing your point-based reward system
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There is no tried-and-tested way to manage points-based rewards systems. However, there are some steps you can follow.
We will now go over 18 tips to help you run an effective point reward system.
1. Start with a goal in mind
Every points-based rewards system should facilitate accomplishing a business goal. It is the only way to ensure its effectiveness. Without a clear objective, your points system won’t stand out.
Which loyalty program objectives can you set? For instance, you might want to:
- Boost sales
- Increase user retention
- Improve customer acquisition
Whatever the goal, you will reach it faster with reliable points reward system such as PassKit.
2. Don’t overcomplicate things – keep it simple!
For instance, some businesses use Loopy Loyalty to create digital punch cards. The action and goals are clear to members. They know how many purchases to make to receive a reward.
On the other hand, physical loyalty cards aren’t that transparent. They only feature details like customer name and card number. Shoppers would need to go out of their way to find information on their point balance.
It is why you need digital loyalty cards made with PassKit. There is no custom app building – you just need to log in to manage your points-based rewards system.
3. Determine what rewards to offer
Remember that reward points and incentives are why people join loyalty programs. They need to see your value, which will encourage them to choose yours instead of other loyalty programs.
4. Award points for every purchase
You should allow customers to earn points on every purchase, no matter what they buy. It would show consumers that you value them and their business and are willing to reward them for their loyalty.
Customers would be much more likely to return to a business that offers this type of system, and they would be more likely to recommend it to others.
5. Set up points milestones and expiration dates
We suggest you establish a tiered loyalty program. Customers reach a new tier depending on spending milestones. They receive different incentives based on their rank. It makes your loyalty point system more attractive.
You can also set an expiration date for reward points and vouchers. Make sure that customers have much time to redeem them.
6. Make sure customers are aware of the rewards
You can create marketing messages that target customers who are part of your points-based rewards program. Those messages should promote the rewards you offer. That way, consumers know what to expect when they earn enough reward points.
7. Train employees on how to use the points reward system
Motivating employees to learn how to use a new loyalty points-based program may take work. However, you must do it if you don’t want to lose customers.
You can devote one day (or more) to reviewing the chosen rewards platform with your staff. Show them how they can find a member, register a transaction, redeem vouchers, use a referral code, and other things.
On the other hand, you can save time by choosing a user-friendly loyalty platform provider such as PassKit. It’s so intuitive that your team can start using PassKit in minutes. Start your 45-day free trial to evaluate its features.
8. Appeal to different types of customers
The success of loyalty programs depends on the knowledge of
- Consumers (age, gender, location, and more)
- Purchasing habits and preferences
- Current trends
Gathering customer data is challenging; you can expect this feature only from advanced loyalty solutions on the market.
PassKit provides advanced analytics that helps you learn more about your customers and their preferences, including their favorite mobile wallet, distribution channel, redemption rates, and more.
Start your 45-day free trial to check our analytics dashboard.
9. Get creative with your redemption options
When redeeming points, customers should have plenty of options. That way, they can pick the option that best suits their needs and preferences. Some popular redemption options include discounts, free products, and vouchers.
Another thing to remember is that the redemption process should be straightforward. 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 often to keep customers interested
If you want to keep your loyalty points-based program fresh, try rotating the monthly rewards you offer. It can help keep your customers engaged, as they’ll have something new to look forward to. Plus, providing different rewards regularly can encourage customers to keep spending money on your products or services.
11. Offer bonus points for special occasions or holidays
Giving customers bonus points on special occasions is a great way to show them that you value their business. Not only will they appreciate the gesture, but it will also encourage them to continue doing business with you.
Birthdays and holidays are the perfect time to offer bonus points, as people spend more money on these occasions. You’ll make them feel appreciated and valued by giving them an extra incentive to keep returning for more.
12. Make it fun for customers
It’s no secret that loyalty programs can get a little boring. After a while, customers may start to forget about your program entirely. That’s why more and more companies began gamifying their loyalty programs.
Gamification involves 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 can be a great way to keep customers interested in your loyalty program. By making it more fun and engaging, you can encourage customers to keep participating. It can ultimately lead to more loyalty and repeat business.
13. Let customers track their points and rewards
A digital rewards system lets customers track their points and rewards more quickly. With this system, they can check their account balance anywhere at any time.
It is more convenient than a traditional loyalty program, which requires customers to visit the business to use the card and check their balance before redeeming rewards.
14. Keep track of points earned and redeemed by each customer
Keeping track of the points earned and redeemed by each customer in a loyalty program is essential. It allows you to see how customers interact with the program and what rewards they are most interested in.
If customers are not using a specific offer, it’s time to change it with another one. It helps to keep the loyalty program engaging and relevant for customers.
15. Promote your points reward program online and in-store
By promoting it online and in-store, you can ensure that everyone knows 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 information.
By making it easy for customers to learn about the program, you’ll increase the chances that they’ll take advantage of it.
16. Stay updated with trends and changes in loyalty programs
To keep your loyalty program relevant and successful, you must monitor its performance constantly and use your findings to make changes and improvements.
It is imperative 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 competition.
17. Use a points management system to help track and organize points
PassKit can help you keep track of your redemption rates. Our system collects data automatically, so you don’t have to do anything manually. It can be a huge time-saver, especially if you have many data to track.
PassKit presents all the data in a centralized location, so you can quickly see your performance and ensure that your rewards program runs smoothly.
18. Celebrate your customers’ successes
Points-based systems help businesses to create close-knit communities. Every customer is a valuable member who fuels their business growth. Thank every member for their trust and loyalty by celebrating your success together.
All of these tips will work if you have a reliable solution to help you along the way. We have what you need! Continue reading to learn more.
How to manage a points reward system with PassKit
PassKit is the perfect solution for businesses that want to connect their customers’ online and offline experiences. We make creating and managing a points reward system easy, so you can surprise your customers with loyalty rewards they’ll love.
With PassKit, you can quickly turn any loyalty program into a powerful marketing tool. Continue reading to learn how.
Create your account and start a 45-day free trial
No custom app building or time-consuming design processes – PassKit gets your loyalty program ready in a few minutes. Create an account and enjoy a 45-day free trial. Use that time to explore PassKit and see how your loyalty system improves.
Create a digital loyalty card, membership card or coupon
Traditional loyalty cards, membership cards, or coupons are now old news. People are glued to their mobile devices, so your business must keep up with the trends. Launch a loyalty program that integrates with Google Pay and Apple Wallet with PassKit.
Contactless shopping has become popular ever since the onset of the COVID-19 pandemic. We give consumers what they want by delivering your points reward system to their mobile wallets.
Our loyalty card templates align with Android and iOS guidelines, ensuring your reward cards look proper on mobile devices.
Distribute your loyalty cards online and offline
Multichannel distribution helps you differentiate your business from the competition. It ensures you connect with customers on all brand touchpoints. PassKit supports a multichannel distribution system that lets you 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
Leverage PassKit to ensure customers never forget about your brand.
Track your redemption rates
As we said, monitoring your point-based reward system performance is paramount. That is much easier when you have PassKit and our advanced analytics.
We track and collect various data – from the number of enrolled members to the number of installed and uninstalled digital passes. You can track your results in different periods and evaluate the most popular mobile wallets and distribution channels to boost your sales and marketing efforts.
Optimize your point-based reward system
In today’s world, it’s more important than ever to have a unified online and offline customer journey. Customers expect a seamless experience regardless of the channel they’re using, and it’s up to businesses to deliver.
That’s where we come in. We help businesses deliver a frictionless, connected, and seamless customer experience offline and online. We use Google Wallet and Apple Wallet to connect your online shop and physical store. And with PassKit, the points reward system works the same regardless of the channel your customers use.
Point-based reward system: The bottom line
Customers want to feel appreciated. They want to see you value every penny they spend on your products or services. They need a point-based reward system for that. Receiving rewards for their purchases will further strengthen their loyalty to your brand.
Launching a digital point-based reward system is the best solution. Customers have ditched their physical credit cards for Google Wallet and Apple Wallet. Leverage this new trend with PassKit and deliver your loyalty program to their mobile devices.
Sign up now and start your 45-day free trial!