One of the most critical decisions when setting up a loyalty or referral program is determining the type of rewards to offer. The right incentives can drive engagement, boost customer lifetime value, and encourage advocacy. However, choosing poorly can lead to low participation and wasted resources.
The Problem: What Rewards Resonate?
Marketers often struggle to identify rewards that truly motivate their target audience. Common pitfalls include:
Generic Discounts: While discounts are popular, they can devalue your brand if overused. Customers may become conditioned to waiting for sales rather than paying full price.
Irrelevant Rewards: Offering rewards that don't align with customer interests or preferences can lead to low engagement.
Complex Redemption: If rewards are difficult to redeem, customers may become frustrated and abandon the program.
Lack of Perceived Value: Rewards that don't feel valuable to the customer won't be effective motivators.
Exploring Reward Options
Here are some common reward types to consider:
Discounts: A percentage or fixed amount off a future purchase. Effective for driving repeat business, but can impact perceived value if overused.
Gift Cards: Provide customers with the freedom to choose what they want. Particularly effective for lifestyle brands with diverse product offerings.
Free Products or Samples: A great way to introduce customers to new items and increase product discovery.
Exclusive Experiences: Access to special events, early access to sales, or personalized services can create a sense of exclusivity and strengthen customer loyalty.
Tiered Rewards: Offer increasingly valuable rewards as customers reach higher loyalty tiers. Motivates continued engagement and spending.
Charitable Donations: Allow customers to donate their rewards to a chosen charity. Appeals to socially conscious customers.
Points Systems: Customers earn points for various actions (purchases, referrals, engagement) and can redeem them for rewards. Offers flexibility and encourages ongoing engagement.
Gather's Solution: Powering Flexible and Effective Rewards
Gather provides a comprehensive platform that empowers e-commerce brands to implement a wide range of reward options, including:
Gift Cards: Seamlessly integrate gift card rewards into your loyalty and referral programs using Gather’s integration with Tremendous. Offer various denominations and even partner with other brands for expanded choice.
Reward codes: Generate discount codes on the fly with Gather Promotions Connect. Design tailored promotions for advocates and friends at different stages of your referral funnel. You can even reward customers with store credit.
Tiered Loyalty Programs: Design multi-level programs with increasing rewards and exclusive benefits for your most loyal customers.
By leveraging Gather's platform, you can overcome the challenges of choosing the right rewards and create a compelling loyalty and referral program that drives customer engagement, increases lifetime value, and fosters brand advocacy. For more information on choosing the right rewards for your brand read our Referral Program Rewards Playbook.