Do rewards programs work? A deep dive ~

Do rewards programs work? A deep dive ~

Do you utilize a rewards program at your frozen treat shop?

We hear mixed reactions from business owners like yourself. But wanted to shed some light on this somewhat mysterious topic.

Often times companies associate a rewards program as a cheap and non-effective marketing tactic. They sometimes associate it with giving away something for nothing. But is that really the case?

Would rewards programs really have stuck around for 20+ years? And would giant corporations such as airlines and grocery stores have them if they weren't effective? Probably not...

Remember that large companies are all about the bottom line. Almost everything they do is geared towards making shareholders more money.

A companies most loyal customers, are also its most profitable. It's well known that the longer you've had a customer for, the lower the cost to serve them.

This is because of many factors, such as you no longer have to spend marketing dollars to get that person into your store. They come more frequently and don't require any special deals or holidays to show up.

Not to mention... If every customer you had only came 1 single time and then left. And you were always simply trying to acquire new customers instead of also nurturing the ones you already have... 

You'd have a tough time staying afloat! Customer lifetime value is the key to a healthy and successful business.

The most simple rewards program for an ice cream shop or something similar is going to be a punch card. One that rewards people if they come back multiple times to purchase.

Better yet, a rewards program sent out via an email. But to implement this you would need a newsletter sign up in your store, plus would need to offer an initial reward to convince people to sign up.

Another form of a rewards program is to simply reward your best customers. Maybe offer them a free scoop here and there. They will definitely come back after that!

Let us know if you offer a rewards program and what type! We are sure your fellow shop owners would like to know.

Jun 30th 2021 Vincent

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