Rewards are only rewarding if they are perceived to be of value by your target market. There are so many around and one of the oldest and most widely used is really quite ineffective for business growth.\u00a0 I\u2019m going to go against popular opinion and state that I believe the free coffee card-type rewards programs suck. There. I said it!<\/p>\n
<\/span>Rewards for rewarding\u2019s sake?<\/strong><\/p>\n One free coffee as a reward for buying nine coffees? Big deal! That would be like if my mum had said to me as a kid, \u201cGood on you for eating all your dinner Mel. For doing that, I\u2019m going to treat you with more<\/em> dinner!\u201d\u00a0\u00a0 For doing what I wanted you to do, I\u2019ll now reward you with more of the same. \u00a0Not really<\/em> much of a reward is it?!<\/p>\n As adults we\u2019re even harder to impress and delight. \u00a0The perceived <\/em>value of the reward you give must feel like a genuine \u2018thank you\u2019 to your customer for choosing your business over all the others.<\/p>\n Loyalty and rewards programs are now well and truly commonplace in the hospitality and retail landscapes. There are so many apps to download and cards to collect that we\u2019re stockpiling them in a variety of locations because, let\u2019s face it, there\u2019s really only room for a few (at best) in our wallets. \u00a0And while we say \u2018Yes, I\u2019ll join your rewards club\u2019, we soon realise that for many of them, the rewards are not as rewarding as we would have liked.<\/p>\n Here are the Top 5 mistakes businesses make in their rewards programs:<\/strong><\/p>\n 1. Use rewarding as an opportunity to offload old or excess stock.<\/p>\n 2. Unclear on why to incorporate a rewards program other than \u2018everyone else is doing it\u2019.<\/p>\n 3. Give away their core product.<\/p>\n 4. Fail to test reward options and track the return on investment.<\/p>\n 5. Make it hard for customers to use or understand the rewards process.<\/p>\n Give to get back dollars and sense<\/strong><\/p>\n It\u2019s not wise to give away old stock nor is it to give away your core product. The phrase \u2018it\u2019s the thought that count\u2019s\u2019 doesn\u2019t apply in the world of loyalty marketing. If coffee\u2019s what people come to you for in the first place, why not use your rewards program as a tool to create awareness of the other<\/em> items you sell?<\/p>\n Generous or thoughtful gift-giving is essential. As long as it\u2019s not to the detriment of the business, your rewards initiative will then stand out from the crowd and ensure it\u2019s used.<\/p>\n Not every business owner will feel confident to completely move away from the old \u2018free coffee reward\u2019 system, so here\u2019s what I suggest:<\/p>\n Create a rewards strategy<\/strong><\/p>\n Set a specific goal as the objective for your rewards program. It might be to invite every customer to belong to your program or more specific like setting a desired increase in your average customer spend. Choose a small and realistic goal to begin with and adjust as you become clearer on which rewards work best for your business. If your product is good and your reward is worthy of customers\u2019 attention, word will spread, bringing new customers to your door.<\/p>\n Add reward alternatives<\/strong><\/p>\n Offer something of equal value that complements the product they come to you for. \u00a0Maybe a muffin or breakfast wrap. Choose something you are confident your customers will love as much as your great coffee and are likely to want to buy along with their coffee purchase in the future. The idea is to add value for your customer while introducing them to an alternative product. Change the offer from time to time so it doesn\u2019t get boring for your customers. What might work for the first few months might not forever so you\u2019ll need to\u2026<\/p>\n Test and measure<\/strong><\/p>\n Determine the most claimed reward and importantly, determine which directly correlates to an increase in customer spend. Drop anything that doesn\u2019t benefit both your customers and<\/em> your bottom line.<\/p>\n Keep it simple<\/strong><\/p>\n The one thing that is great about the free coffee card system is that you know what you need to do to get rewarded. Loyalty and rewards programs with confusing point systems don\u2019t breed customer confidence. 1 point for every $15 spent? What does a point get me? How many points do I need to get a reward? If your loyalty program requires customers to ask lots of questions it will slow down service rendering it unhelpful. Your loyalty program needs to be easy to understand, simple to use and require minimal staff interaction.<\/p>\n The last word\u2026 Any rewarding needs to bring about a win-win situation for both the customer and the business. Try these tips and let me know your progress. Don\u2019t be afraid to drop the free coffee reward. Be sure to let me know your thoughts!<\/p>\n Cheers,<\/p>\n Mel Telecican.<\/p>\n","protected":false},"excerpt":{"rendered":" Rewards are only rewarding if they are perceived to be of value by your target market. 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