Question

Loyalty/reward programs are becoming more and more prevalent. With the onset of more loyalty programs, it becomes important for companies to design programs that are differentiated from other competitor programs. What are at least three key aspects that a company must consider when developing a successful loyalty/reward program

Answer 1

A loyalty/reward program refers to prizes, discounts and other incentives that companies provide to their customers as art of aan strategy to encourage them to continue buying their products or services. Three key aspects that a company must consider when developing a successful loyalty/reward program are:

-Exclusivity because the customer has to feel that it is special to be part of the program and not that everyone gets the same benefits as the program won't provide any value for the customer.

-Customer knowledge because you need to understand your customers to make sure that the program would be relevant to them by appealing to their needs and desires.

-Contribution to the brand because you have to make sure that all the efforts support your brand as that is your image and the incentives offered have to provide value to it.