Consumer Reward Programs - Mutually Beneficial
There are quite a lot of businesses that are seasonal such as tourism, travel, vacation packages etc. Such times are called as 'peak operating seasons'. They generally occur during holiday times in case of tourism and sale events in shopping malls and retail stores. At other times, the sale becomes a lull. To maintain active sales throughout the year and thus for generating income, companies have introduced the consumer reward programs. They are nothing but business strategies adopted by brands to maintain an active business and also maintain a long-term relation with the customer. Consumer reward programs in US guarantees customer loyalty towards a specific brand and thus maintains a long-term relation with them.
In many places, people keep changing their product brands from time to time. It is only under exceptional circumstances that they maintain brand loyalty. In US, there are many leading brands and no person would stick to one brand as all are very competitive. Each brand comes up with a product with better features and more unique factors than the other brand. Therefore, it is only natural for consumers to try different brands. Variety is after all the spice of life.
A consumer reward program in US has helped people to maintain brand loyalty. This was a huge factor during the recent recession and economic downtown. Owing to the recession, most companies faced a drastic reduction in the number of consumers. Every brand reduced prices to attract people. However, because of consumer reward programs in US, many brands managed to stay afloat. This is because some of them offered special discounts for those availing consumer reward programs. Obviously this attracted people as saving money was the mantra then.
How to attract consumers?
Consumer reward programs in US are very popular. To keep attracting patrons and maintain their loyalty to your brand these loyalty programs play an important role. Introduce a system where in a certain number for points will be added for every purchase that they make. For example, consumers get one point added in their membership account for every $10 worth purchase made. After the accumulation of a reasonable amount of points (say a hundred points) the consumers can redeem these against a purchase. This will not only save their $100 but will give you profits as to accumulate these 100 points they have made purchases worth $1000! That is you have reaped in great benefits. You must acknowledge your consumers for helping you make good profit. Therefore, you are granting them in simple terms free purchase worth $100 once in a while.
This kind of relation is mutually beneficial. Another way to attract consumers is by giving them gifts. That is also another very popular form of consumer reward programs in US. Some retailers give consumers gift coupons worth a certain amount if they buy products totalling up to say $1000. This is more popular during the festive season like Christmas, Thanksgiving etc.
Consumer reward programs in US, UK, or any other place is very popular as here both consumers and retailers are at the gaining end. No one is at the losing end. If you are starting a business then you definitely know what the best way to attract consumers is by reward programs.