If you own a supermarket or a retail shop, create the same reward system and let your customers enjoy free products such as kitchen utensils, cleaning products or free groceries.
Whether you own a retail shop or restaurant, you can create a point system that rewards customers in cashback.
The more money customers spend the more points they get. More points means more cashback they can spend in your shop or restaurant.
For every $1 spent, customers get a point. Collect 100 points and have $10 cashback.
For every 200 points, they get $25 cashback.
Set a realistic expiry date for redeeming the cashback giving them enough time to redeem their points.
A paid program
Give your customers who spend above a certain $ amount, the chance to enroll in a paid program where they pay annual or semi-annual fee in return to special free services.
You can call it a VIP program.
If your customers for example spend $10,000 annually, offer them a chance to enroll in the VIP program paying an annual $50 fee to get free special services.
These services might include free delivery, preparing their orders or groceries free of charge, exclusive offers and discounts on products for the VIP card holder, free car wash while they shop or eat and free wifi.
Make sure the offers are exclusive to the VIP card holders or it won’t have any value.
Remember that this kind of reward system is for existing customers and frequent buyers.
To know which products to discount, collect these customers’ purchases information from the POS.
Make sure to choose products that interest them.
Unlike the collect and earn reward system, a tier program puts customers into categories depending on how much they spend.
Let’s say you divide the program into four levels or tiers, silver, bronze, gold and platinum. The more customers spend, the higher their ranking will be.
Each tier comes with special benefits to its members.
Silver and bronze members can double their points when purchasing while gold and platinum can triple them
Silver members’ points expire in 6 months, bronze in 1 year, gold in 18 months and platinum in 2 years.
Set welcoming points when being part in the tiers.
Silver members get 100 points, bronze 150 points, gold 200 points and platinum 300 welcoming points.
Offer different tiers members different birthday vouchers.
$20, $35, $50 and $75 for silver, bronze, gold and platinum.
Offer different tiers different gifts. The higher the tier, the more valuable the gift.
Remember that tier program is not for all your customers, rather it’s intended to reward customers who spend the most.
Let’s say 40% of your income comes from 10% of your customers, the tier program is to reward these 10% customers.
Offer tiers’ members special discounts on certain days like holidays and birthdays.
Starbucks USA is also an example of how tiered program is applied.