Did you know that loyalty programs can increase customer retention by 30%?
Offering rewards like vouchers and points isn’t just a marketing strategy—it’s a powerful way to build relationships with your customers and keep them coming back. This article will guide you through the step-by-step process of implementing a vouchers and points system that rewards your customers and drives engagement!
Why Rewards Matter for Customer Retention
Rewards aren’t just about discounts—they’re about creating value for your customers and giving them reasons to return to your business. Here’s how a well-structured rewards system can benefit your business:
1/ Increase Repeat Purchases: Customers are more likely to return when they know they are earning points or can redeem a voucher.
2/ Boost Engagement: Rewarding not just purchases but actions like social media shares or referrals strengthens your connection with customers.
3/ Build Long-Term Loyalty: A rewarding experience keeps customers engaged and excited about your brand.
Setting Up a Voucher System
Vouchers give your customers an immediate reason to make a purchase. Whether you offer a 10% discount on their next order or a $20 store credit, vouchers provide instant value and help customers feel appreciated.
How to Choose the Right Voucher
Percentage Discounts: Perfect for driving large purchases (e.g., “Get 20% off your next order over $100!”).
Dollar Discounts: Ideal for smaller incentives (e.g., “Get $10 off your next purchase!”).
Free Products: Great for loyalty milestones or promotional offers.
Pro Tip: Add an expiration date to your vouchers to create urgency! This boosts your conversion rate and encourages immediate action.
Rewarding Customers with Vouchers for Their 1st, 3rd, and 5th Purchases
The primary goal of offering vouchers is to reward customers for their loyalty, increase retention, and encourage repeat purchases. By offering vouchers at specific milestones like the 1st, 3rd, and 5th purchases, you motivate customers to keep shopping with you.
How to Issue Vouchers Automatically
You can issue vouchers automatically after each key purchase milestone using the following steps:
Login to the Site:
As a customer, login to the site and start browsing products. Once a customer completes their first purchase, the system will issue a voucher and display it in their profile page.
Voucher Visibility:
After completing the purchase, the customer will see their voucher available for the next purchase in their profile. The voucher could be something like “Get 10% off your next purchase!” for a first-time buyer.
Automating Voucher Distribution: Flow Setup
Since the process is automated, the system tracks purchases and rewards customers with vouchers at key milestones (e.g., 1st, 3rd, 5th purchases). Here’s how the backend works:
Schedule a Flow to Automate the Voucher Process:
Use batch management to get information about the customer’s purchase activity and trigger the flow.
After the flow is scheduled, the voucher will be automatically issued and visible to the customer after each key purchase.
Pro Tip: Include an expiration date on vouchers (e.g., 30 days) to create urgency and increase the likelihood of redemption.
Rewarding Customers with Tier Points and Reward Points
Reward and tier points systems work together to build loyalty, retain customers, and encourage higher spending. Customers can accumulate tier points that determine their loyalty status (e.g., Silver, Gold, Platinum), while reward points can be redeemed for discounts or special offers.
How to Assign Points for Customer Actions
You can offer points for a variety of actions:
Purchases: 1 point per dollar spent.
Referrals: 50 points for every friend referred.
Social Engagement: 10 points for sharing your content on social media.
Pro Tip: Keep your points system simple to understand. For example, “Earn 100 points and get a $10 discount!”
How to Track Tier and Reward Points
Track Points Post-Purchase:
After the customer’s first purchase, they can see both their reward points and tier points in their profile. These points accumulate with each purchase.
Make a Purchase to Earn More Points:
When the customer makes another purchase, both their tier points and reward points increase based on the purchase amount.
Example: A customer who makes a $215 purchase earns 215 reward points and an additional 200 tier points.
Key Differences Between Reward Points and Tier Points
Tier Points:
Tier points determine the customer’s loyalty level (e.g., Silver, Gold, Platinum).
Customers cannot redeem tier points, but as they accumulate more, they move up to higher tiers that offer better benefits.
Reward Points:
Redeemable for discounts, customers can use reward points on their next purchase. For example, 1000 reward points = $10 discount.
Customers can choose to redeem some or all of their points at checkout.
Redeeming Reward Points in the Next Purchase
Once customers have accumulated reward points, the next step is making it easy for them to redeem those points on their next purchase. This increases the likelihood of return visits and repeat purchases.
How to Redeem Reward Points
During Checkout:
When a customer makes a purchase, they can see the option to use their reward points at checkout. They can choose how many points to apply to the current purchase.
Check “Use My Points”:
Customers need to check the box for “Use my NTO Insider Points” during checkout to redeem their points.
Example: If a customer has 1000 reward points, they can use 50 points to get a $1 discount (at $0.02 per point).
Example Scenario:
Let’s say a customer has accumulated 1000 points. During checkout, they decide to use 50 points, which gives them a $1 discount on their purchase. After the order is placed, 50 points are deducted from their reward points balance.
Start Rewarding and Engaging Customers Today!
By offering vouchers and implementing a points system, you’ll create a loyalty program that keeps customers coming back and motivates them to spend more. Whether you’re offering a $10 discount or allowing customers to earn points on every purchase, your loyalty program will give them a reason to stay engaged with your brand.
Ready to Reward Your Customers?
Start today! Set up your loyalty program and offer customers the rewards they deserve. Download our free template to create your own points tracker and start building loyalty now!