What is a rewards program? It can be many things to many people. The benefits come in a variety of forms and can be as small as a cup of coffee to as important as a free airline ticket.
There are programs to motivate employees, to maintain a customer base, and to encourage children to learn how to read. Rewards are allotted in many forms. It can be a card that you present, a token that is worth something, or a point that you can redeem.
Why do these programs seem to work? In the morning you are on your way to work. You stop at the coffee shop to get your morning coffee. The person behind the counter gives you a card that has ten little coffee cups stamped on it. Each time you buy a coffee at the shop you get a coffee cup stamped. After 10 are stamped on your card you get a free coffee. Why? Very simple. They want you to buy your coffee at that shop and that shop only. Having the card and the future free coffee motivates you to return.
Credit cards have a staggering amount of different programs. There are business cards, travel cards, and student credit cards. Some business credit cards offer cash back for buying gas, going to a restaurant, buying supplies. There is also the option of getting checks in $50 increments for your points. Often these cards also will award double air miles on every purchase and the miles do not expire.
The travel credit card usually offers frequent flyer miles or points that you can redeem for discounts on your airline ticket or perhaps stay a night free in a hotel. The student credit card is based on earning points to redeem on purchases. Most of points are redeemable for purchases in restaurant, book stores, record stores, movie rentals and theaters. These cards also have a popular cash back feature.
These programs are also appropriate in the work place. There may be a program that motivates the sales person to sell more widgets within the next week. The employee that sells the most receives a dinner for two at a local restaurant. This reward will have more meaning if the time between that action and the receipt of the gift certificate follows very closely.
The client on the other hand who buys the most widgets that week could also be rewarded by receiving a discount on his purchases the next week. Like the coffee card this would bring the client back for his next purchase. Retaining a customer is much cheaper than going out to get new ones.
So now we know that by offering a program like these it may give you the opportunity to get all the business from one client. You want a program that is easy for the client to understand and for you to administer. In giving a client the best quality and service that you can provide and in addition you offer him a rewards program, then you certainly will be able to increase your income.
