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January 23, 2023by Michael Ezeadichie0


What is a customer reward system?

A custom reward system refers to strategies that you deploy to appreciate your customers for their patronage. Every business owner would agree that it isn’t easy to get customers as you are not the only business in the industry.

Take an automobile company for example. There would be other automobile business wonders, all competing for the same target audience. So, having people who steadily patronize your business is a great feat.

With the realization that the customer is king, there is a need to appreciate them for all that they do for your business. It is called a customer reward system.

There is no one way to go about having a customer reward system. You can decide to give regular shoutouts on your social media pages to your most active customers, or can decide to give out periodic discounts. Whatever you decide to do is your decision and that of your marketing team. Every business should deploy the strategy that works best for them.


In this article, we will focus on reasons why businesses need a customer reward system. Some business owners feel that it isn’t necessary, but we have seen that having a customer reward system can go a long way for your business.

Some reasons why a business should have a customer reward system are:

1. Customer retention

We always tell business owners that the same way customer acquisition is important should be the same way they should also focus on customer retention. It wouldnt make sense when your customers are not making repeat purchases from you. If it happens, it shows that something is wrong somewhere and you are not growing well as a business.

One of the strategies that help with customer retention is having a customer reward system. Customers love to feel appreciated and seen by a business. These customers are under no compulsion to patronize your business, but they keep doing it. So, when you have a reward system, it makes them feel happy.

When other businesses come to pitch to them, it would be harder for them to port as they will want to remain with your brand. To the customer, your reward system is something that they love and they would want to remain with your brand because of it.

We’ve interacted with people who tell us that they cannot patronize certain brands because those brands do not have reward systems for their customers. It shows that it is a high factor for customers. So, you need to incorporate this system into your brand strategies.

2. Higher sales

Did you know that you can make more sales when you have a customer reward system?

Of course, we wouldn’t be surprised if you’re doubting this factor. But it is a strategy we have tried with different brands and we can assure you that it works.

By having a customer reward system, you are connecting to the emotional side of the customer. And it is this emotional connection you are establishing that enables customers to buy things from brands.

After all, if you’re not making sales a business owner, then there is no need to still be in business. If you have been looking for how to boost the sales of your brand, try deploying having a customer reward system as a strategy. It has been used by many marketing teams and have proved to be effective.

It is best to keep in mind that it isn’t every time that your customer would have a need for your product and service. However, they would feel compelled to buy from you when you have established an emotional connection with them. Therefore, it is important to strive for that emotional connection as a business owner. Understandably, you may be in doubt initially but we are sure that you would be back to testify.

3. More customers

Another importance of having a customer reward system is the fact that you can get more customers through it. It usually happens through referrals and word of mouth marketing.

When you have a customer reward system, you can be sure that it would get people talking. If your customers are happy with your system, they will always toot the horn about your business. You will see them talking about it with their friends and even on their social media platforms. Soon, more people get to know about your brand and you will have more customers.

Through the customer reward system, people who have not been patronizing your before would become impressed and they would also want to be a part of your customers’ community as they also want to benefit from this customer reward system,

Recall that we earlier mentioned that customers love to feel seen and appreciated. It could be that these new customers were not appreciated by the other brands that they have been patronizing. So, they will port to your brand now because you have a customer reward system.

You can see that this is an effective system of marketing as you can get referrals from people without paying them to talk about your business.

4. Creates proper communication flow and great bond with customers

One of the most important business hacks should be to have a proper communication flow with your customers. It may seem hard and difficult initially, which is why you have to deploy different strategies to ensure that it happens. So, it isn’t out of place using a customer reward system as one of those strategies to enforce it.
You will find it easier to communicate with your customers when there is a customer reward system. The vibe becomes more friendly and there is no hostility. The customer reward system is a sort of ice breaker between business owners and customers.

Now, customers are no longer shy to reach out for inquiries or complaints. And if there is a complaint, you can be sure that they will do it softly as compared to a brand that they do not have an emotional connection with.

It will be easier to reach out to these customers and know their pain point or needs. Now, running the business would be smoother and more enjoyable. Many entrepreneurs and business owners admit that they enjoy business better when they have a bond with their customers.

We want you to get to that point where your customers are always happy to come in contact with any of your brand’s communication. We know that such an act would give you great satisfaction.

5. Reduces costs

We would say that having a customer reward system helps to reduce costs on the part of the business owner. Imagine getting more customers through referrals at no extra cost.

If you had to pay influencers, you know that you would have to pay money. But now, you have people who are talking about your brand even without you asking.

We are not saying that you wouldn’t spend money on a customer reward system. However, the benefits that come with it cannot compare to other marketing strategies.

Deploying strategies for a business are usually expensive. For example, you know what it would cost to run TV ads. So, if you’re on a tight budget to create visibility and awareness for your brand, you should consider going for a customer reward system.

Indeed, it is truly rewarding.

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