Using Customer Loyalty and Market Research Rewards Effectively
Customer loyalty cards seem to be everywhere today, designed to inspire loyalty amongst consumers and promote brand recognition. However, there are still successful campaigns and unsuccessful ones and the difference between the two can be vast.
It may seem that offering customer rewards for loyalty are an obvious false economy for the consumer. After all, the cost of the rewards will be factored into the price of the goods or services offered and therefore, ultimately, the customers are actually simply paying for their own rewards. Surely, a business could reduce the amount they charge for items and stand out by undercutting the competition?
This is not really the case. The amount added onto each item to absorb the cost of the rewards is fairly negligible and, for some businesses, undercutting competition may lead them to look cheap next to a more superior brand. Furthermore, consumer psychology dictates we feel a boost when we get one big reward, and one that is far more important than making very tiny savings here and there.
Market research rewards are also a great way to reward customers and get something tangible for your business too. By offering rewards to those taking surveys for you, you will almost certainly get a far greater range of feedback, and in turn not only will you be inspiring loyalty further amongst those that take surveys through the incentives that are offered, but customers will also feel that you genuinely want to listen to their ideas and respond accordingly. Such an approach may even help a business to get a far greater wealth of personal information from customers, with certain research in Canada suggesting that between 30% and 40% of people will be happy to reveal very intimate information when they were being rewarded.
From survey incentives to reward cards, the impact of rewarding people for using your business and taking surveys can be extremely important and allow companies to retain customers far more effectively, and in turn improve the way they target their demographic too.
