Reward programs have been a part of the customer experience for over a century with its continuous flier program that lets individuals exchange points for updates and companion tickets. Today, loyalty points have moved past continuous flier and hotel traveller programs and are worked in too many debit and credit cards. The concept of loyalty or reward programs is pretty straightforward — a business needs to encourage you to spend money with them, so they give you rewards for doing so. Whether they are rewards cards for supermarkets and pharmacies, or credit cards linked to shops and airlines. Loyalty cards and apps have proved essential.
You can use rewards for a lot of things. The cash rewards can be paid as cashback to the holder. Travel rewards can help you earn free trips for yourself and your loved ones. You can use rewards to get birthday and holiday gifts. You can also invest the rewards you earn.
In the present condition, understanding client behaviour, frames of mind and prerequisites is more imperative for modern companies. Whenever you shop with a supermarket and scan your card, you earn points which you can redeem for things like vouchers or goods or you might put them towards another purpose, like a frequent flyer program. The challenger companies are winning since they put the client at the core of all that they do. Rewards programs aren’t just for retailers. By opening their data to third parties, companies can use data to attract and keep customers. If you’re already spending money with a supermarket because you are fond of them, then joining the loyalty program can be worth it. Retailers spur folks to join their loyalty programs so they can amass data and create shopper profiles, which allows marketing to be more inclined.
The best cards reward you for doing something you would have done anyway. And whether you have a travel, cashback, or generic rewards credit card, knowing how to maximize the benefits you get from the card can help you get the most for your money. If you’re already doing it anyway, get rewarded. However, don’t switch your behaviour because of a loyalty program. Without a loyalty program in place, a customer would be paying money for products and services they want to buy and that is all they would receive. The advantage of buying from an organization that offers customer loyalty programs and rewards is that, not only you get the products or services you paid for, in addition to that you also get rewards for making purchases and staying loyal to the company’s products & services.
Rewards cards have a lot to offer, but it may require a little extra legwork and brainpower to get the most out of yours. And if you do it right, you could score hundreds of dollars, if not thousands, worth or rewards each year. While customers have become more thoughtful about money management, only top-notch loyalty programs can make tremendous strides to instil loyalty in customers and increase their retention.
This article was sent in by Steve Onwuka, Community Manager at Korapay. Korapay is a cross border remittance platform focused on reducing the cost of money transfer and increasing its speed into and within Africa. Korapay allows individuals in the United States to send money within minutes to the bank account of anyone in Nigeria.