How do milestone based rewards help in loyalty programs?
Milestone based rewards adapted to customer preferences help incentivize customers to embark on an engaging journey with a brand.
Reward Points is a universal term to define what a customer earns by engaging with a brand. Customers through transcendent technology can interact with brands on a daily basis. As customer insights are becoming increasingly available through online impressions and spend patterns, an enterprise has a lot more to learn than what meets the eye. Efficient use of customer insights to incentivize customers through milestone-based rewards can help boost a loyalty program.
To cut a long story short, the ultimate aim of a business is to retain their customers so that it will create a more steady flow of business revenue. By infusing past data of customer’s spend patterns, measuring the success of a certain program, enterprises can understand where, when and how to reward their customers. Highly targeted product recommendation offers through these insights is one way to entice customers. Demographics, lifestyles , products purchases, number of transactions are all effective ways to distinguish the customer. Using insights is the rudimentary step to further improve customer loyalty. But this is not easy.
How do we do this?
By assigning smaller, attainable goals to loyal customers, enterprises incentivize their customers through rewards after they reach these targets. Many businesses in the hotels, flights and other categories have tier upgrades which are impending for customers who engage with these brands frequently. Milestone based rewards can motivate customers to further engage with a brand. Incentivizing customers lagging behind can further retain inactive customers. By rewarding frequent customers and incentivizing customers who have not yet reached the desired engagement rate, enterprises can boost their loyalty programs.
A key metric that customer analytics infuse in brands is the customer personas. By providing offers based on customer’s needs and preferences can help understand what rewards they are looking for. Finding incremental value is more important than volume. Finding burn options for customers to go beyond their brand of purchase and use their reward points to redeem across aligned brands can help incentivize a customer. When an enterprise analyses spending patterns of customers to decide the right thresholds for rewards, the program in turn becomes more inclusive.
Through a customer- centric approach, enterprises can offer a rewarding journey for its customers. By using key performance indicators and segmenting customers based on data analytics, a loyalty program can provide more clarity and be of indispensable value.