Customer relations are a huge part of any business, especially online where the seller is not always able to be physically present with the buyer of their product or service.
Additionally, in a saturated market where so many virtual companies are vying for the attention of every mobile or desktop shopper, the thing that makes certain brands stand out over others is unquestionably the way they treat their customers. And one of the ways they do this is through rewards.
However, if you have been around the digital shopping ecosystem for any amount of time now, you may have noticed that the manners in which various companies reward their customers is not always the exact same. In fact, there are more than a few clever strategies currently in place that allow online patrons to feel invited and appreciated, therefore increasing their loyalty. In this article we take a look at a few of the most popular.
As a Welcome Following the “Sign up” Period
Since online companies are not able to physically wave hello to those who purchase their products for the first time, many will reward customers directly after the sign-up period as a way to express their gratitude for choosing them and as a way to say “welcome.”
One of the best ways to see how this plays out in real life is by taking a look at a rapidly growing industry in today’s current digital environment: online sports betting. Millions of sports fans all around the world are taking advantage of the convenience of the internet to support their fandom by wagering on the teams and players they believe in ahead of important games or matchups.
With this growing interest in virtual betting comes more competition, so many providers are taking the opportunity to reward their users when they choose their services. For example, a DraftKings promo code is one tailor-made for new sign-ups to the platform. By offering rewards like these, brands can wave a virtual “hello” to their users, welcoming them aboard their product for the first time.
Through Reward Programs Based on Tiers
Even within the one category of reward programs, there are many different subtypes. For example, tier loyalty, paid loyalty, point loyalty, and spend-based loyalty. However, for the purpose of this article, we will be speaking primarily about tier loyalty, or programs that present rewards after the completion of certain milestones or dependent on a customer’s individual ranking.
These are some of the most common across digital businesses as customers’ gifts are dependent on their amount of interaction or level within the reward program. For example, one of today’s most prosperous tech companies, Uber, has a genius tier reward program split into different categories of Blue, Gold, Platinum, and Diamond.
Here, customers of Uber ride sharing or Uber Eats can earn points and unlock certain rewards based on where they stand in the system. This type of strategy gives customers something to work towards, allowing them to feel an extra sense of accomplishment when they reach certain levels and receive benefits. And especially thanks to the improvements in mobile technology in recent years, nowadays all of these actions can take place inside the company’s mobile application, making the process that much more convenient for the modern customer.
As a Thank You for Bringing Referrals
In addition to points programs and welcome promotions, many companies will reward customers if they can prove that they brought more business to the brand. Airbnb’s referral program is a great example of this as members are able to earn travel credit if their friends become users on the site. Uber Eats has also implemented this same type of system with a monetary food credit given to those that refer someone they know to make a purchase on the application.
In this way, referral programs benefit both the customer and the business simultaneously, one of the best strategies to promote sales growth as well as enhance word-of-mouth marketing.