A customer incentive program is incomplete without rewards fulfillment. Customer incentive programs are created to appreciate customers for completing a particular behavior that aims to improve your brand. Rewards fulfillment programs also encourage your customers to repeat and carry out behaviors that are beneficial to your brand. When initiating rewards fulfillment programs, your primary objective should be to ensure that you fulfill your rewards which may be in the form of merchandise, travel, gift cards, discounts, exclusive sales, etc.
We shall identify and list the best practices for customer incentive programs and find out how to implement rewards fulfillment. As you read on, you will learn effective ways to create loyalty program fulfillment to achieve success for your brand. We will also provide answers to frequently asked questions about rewards fulfillment programs.
Best practices of a customer incentive program
When implementing rewards fulfillment programs, you need to adhere to the best practices to allow you to have a successful customer incentive program. Here are some of the loyalty program fulfillment best practices.
Have a clear objective
Before engaging in any customer incentive program, you are advised to have a clear objective so that you can easily know if your rewards fulfillment program is meeting your set out objective during appraisal. Your objective may be to improve sales or to attract high-value customers. You can also set your objectives based on the fact that you need to get customers from referrals. Whichever objective you set, ensure that it is clear and achievable.
Have a specific target customer category
Loyalty program fulfillment can be more successful if you avoid including all your customers in the program. You may want to focus on frequent customers because you know that the returns may be guaranteed. Another category of customers to target is high-value customers who are most likely to make purchases anytime in the future even though they may not be frequent.
Put your company’s culture and brand into consideration
One other loyalty program fulfillment practice that you may want to consider is that whatever rewards fulfillment program you are implementing should be one that will reflect the culture and values of your brand. Ensure that the loyalty program fulfillment theme is simple and relevant to your brand.
Suppose you do not make use of advanced technology in connecting with your customers. In that case, you should also avoid using advanced technology in delivering the rewards fulfillment program to your customers.
Ensure that all your employees are carried along
You should not take the rewards fulfillment program as any other marketing or sales project. You may require inputs from employees in a different department, from HR to supply chain, Logistics, etc., to successfully implement the loyalty program fulfillment.
Identify the process and rules of the rewards fulfillment program
Have a well-thought-out plan of how your customer incentive program can work. Find out the rules involved in participating in the program. It is also advisable to have a detailed plan of how you can involve your customers in the rewards fulfillment program and how the best way your customers can redeem their rewards.
Let your rewards be meaningful.
Ensure that your rewards are meaningful and that they are in line with your customer base. You can also consider your customer demography in terms of sex and age, especially if your business is a B2B company. Your rewards should be at different redemption levels to allow your customers to earn quicker rewards.
Set aside a realistic budget
It is advisable to set your reward budget between the ranges of 1 to 3% of your revenue. Let the budget for the reward be sufficient to make the rewards fulfillment program to be successful.
Communicate, track your progress and get feedback
Build strong communication between your marketing team and your customers so that the loyalty program fulfillment can run smoothly. You can use newsletters, blogs, websites, social media, or email to update your customers on your reward fulfillment programs.
Endeavor to track the progress of your reward fulfillment program by weighing it against your set out objective. Measure your progress using effective data analytic tools and request feedback from your customers to know how they feel about your loyalty program fulfillment.
How you should implement rewards fulfillment
let us now examine how you should implement rewards fulfillment to ensure that the program meets its desired objective.
It is essential to celebrate success because it aims to create good customer engagement. Make the rewards fulfillment program special instead of sending a prize to the winner without any form of recognition or celebration.
The rewards should be immediate
A reward fulfillment program should be immediate and not be delayed. You may lose the essence of the program if a customer has to wait for several months for their award to be fulfilled.
Your rewards fulfillment program should be neutral
Your rewards fulfillment program should not be biased, and it should be neutral. It should be one that you feel customers may be happy to receive, and you can determine this using the KYC approach.
Correctly make use of promotional items
Incentives are categorized as corporate or promotional. The process of redemption clearly distinguishes these two categories. However, a promotional form of incentives provides a much higher value which can be achieved at a lower cost.
Distribute rewards to only those who have value for the reward
Although some customers may earn a reward, that does not mean that all of them will appreciate the value of the reward. You can create an additional step in the process of redeeming the reward so that only those who value the reward can have access to it
Rewards fulfillment programs are a great way to appreciate customers who have been loyal to your brand. It is also a way of improving your sales revenue and overall brand awareness. However, there are some best practices that you can employ to ensure the success of your loyalty program fulfillment. Ensure that your rewards are immediate, meaningful, and given to only those who appreciate its value.
What is the best way of loyalty program fulfillment?
The best way of loyalty program fulfillment is to use promotional items, ensure that the program is natural, make it immediate, celebrate winners, make it meaningful, and distribute the rewards to customers who value the rewards.
How do you create customer loyalty programs?
To create customer loyalty programs, you must first have a well-defined objective, have a specific target, consider your company’s culture, have a realistic budget, communicate with your customers, and measure the success of the rewards fulfillment program.