Benefits Of Customer Reward Programs
The customer reward program does seem like a boon to the customers who enjoy cashing on the free services offered to them on daily purchases that they keep making on the go or during shopping sprees. It comes as an added bonanza to the people that they get extra benefits like discounts on other purchases of some other products. It is quite common, that when a customer avails himself a credit card from a bank or any other financial institution they get entitled to a number of credit card benefits under the consumer reward programs. Let us take a look at some of the reward programs and their benefits
What type of a reward card should be chosen which is offered by consumer reward programs?
-While choosing a credit card offering a particular reward service, the consumer should keep in mind his own purpose of usage. For example if a person signs for a consumer reward program under which he gets discount on air ticket fares weekly but he may not be travelling by air regularly. In such a case it is quite evident that the person concerned is under-utilizing the services that he is being offered on a regular basis.
What are the benefits of a customer reward program?
-The main benefit offered to the customers by the customer reward program is that they get a chance to win prizes along with the purchases they make.
-But, in reality the companies offering such benefits reap high revenues when more and more people purchase in bulk in hopes of cracking the prize being offered.
What are the different types of reward cards in any customer reward program?
Generally, any customer reward program may offer the following types of common reward cards:
-Cash Back Rewards: The customer may have a chance of getting back some percentage of the cash spent back which depends on how much the consumers spending stand at.
-Travel Rewards: The consumer gets the facilities of discounted airline tickets or hotel rooms or tour package discounts.
-Gas Rebates: Some companies give away gas rebates on purchases made via the credit card.
-Retail Rewards: Many stores offer discounts on purchases or points which may help in claiming any prizes offered.
What needs to be done to manage reward cards offered by a customer reward program?
It is important to scan the card of a customer in order to obtain information about the preferences of the consumer. This not only lets the company keep a tab on its customers but also look upon improving and implementing new marketing strategies in the future. For example:
-The type of products being purchased frequently.
-Total amount of dollars spent.
-Total number of points collected.
-Time gap between two purchases.
What are the risks of using a reward card under a customer reward program?
-There is a possibility of added interest rates on products when a consumer fails to make the payments in time
-Also, a customer reward program may offer good bargains, but a consumer runs the risk of falling deep in debt.
-It may also happen that a consumer fails to keep track of the purchases and ultimately mismanaging finances.