{"id":29115,"date":"2023-02-24T13:34:08","date_gmt":"2023-02-24T20:34:08","guid":{"rendered":"https:\/\/paladinpointofsale.com\/retailscience\/home\/?p=29115"},"modified":"2025-09-22T15:08:00","modified_gmt":"2025-09-22T22:08:00","slug":"customer-incentive-programs-reward-your-business","status":"publish","type":"post","link":"https:\/\/paladinpointofsale.com\/retailscience\/home\/customer-incentive-programs-reward-your-business\/","title":{"rendered":"Customer Incentive Programs Reward Your Business, Too"},"content":{"rendered":"

[et_pb_section fb_built=”1″ fullwidth=”on” _builder_version=”4.16″ background_color=”rgba(0,0,0,0.29)” global_colors_info=”{}”][et_pb_fullwidth_post_title meta=”off” featured_placement=”background” _builder_version=”4.17.4″ title_font=”|700||on|||||” title_text_color=”#ffffff” title_font_size=”30px” background_color=”rgba(0,0,0,0.25)” background_enable_image=”off” background_position=”top_center” background_blend=”color” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ text_orientation=”center” custom_padding=”15%||15%” z_index_tablet=”0″ title_text_shadow_horizontal_length_tablet=”0px” title_text_shadow_vertical_length_tablet=”0px” title_text_shadow_blur_strength_tablet=”1px” meta_text_shadow_horizontal_length_tablet=”0px” meta_text_shadow_vertical_length_tablet=”0px” meta_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” text_shadow_style=”preset2″ parallax_effect=”on” module_bg_color=”rgba(255,255,255,0)” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”][\/et_pb_fullwidth_post_title][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”0px|0px|18.95px|0px|false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Intro” _builder_version=”4.20.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n

Originally published: June 29, 2022<\/strong><\/p>\n

Updated: March 1, 2023<\/strong><\/p>\n

One of the lesser-<\/span>talked-about <\/span>effects <\/span>of the pandemic on the retail industry was how transient consumers became. <\/span>It\u2019s hard to blame them.<\/span> S<\/span>tore closures <\/span>and supply chain disruptions<\/span> made it hard to find everyday items<\/span> and it <\/span>caused roughly t<\/span>hree-quarters of <\/span>them to <\/span>change the way they shopped. <\/span>E-commerce<\/span> exploded,<\/span> leading shoppers to try <\/span>new stores, brands, or avenues<\/span> to get their goods<\/span>.<\/span>\u00a0<\/span> Now that the industry is working its way back to \u201cnormal,\u201d effective customer incentive program<\/span>s are vital to <\/span>keeping <\/span>loyal customers and attracting new ones that are still <\/span>shopping around<\/span>.<\/span><\/span><\/p>\n

[\/et_pb_text][et_pb_text admin_label=”Why incentivize?” _builder_version=”4.17.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n

Why incentivize?<\/h2>\n

Well, it\u2019s easier and cheaper.<\/span>\u00a0<\/span> There\u2019s an age-old retail axiom that says it costs more to acquire new customers than it does to keep current ones.<\/span>\u00a0<\/span> [\/et_pb_text][et_pb_testimonial author=”Dan Nesmith” job_title=”President” company_name=”Paladin Data Corporation” quote_icon_color=”#3e5062″ quote_icon_background_color=”#FFFFFF” disabled_on=”off|off|off” _builder_version=”4.17.4″ _module_preset=”default” body_text_color=”#FFFFFF” author_text_color=”#FFFFFF” position_text_color=”#FFFFFF” company_text_color=”#FFFFFF” background_color=”#3e5062″ background_layout=”dark” global_colors_info=”{}”]\u201c<\/span>Your No. 1 priority is customer retention. <\/span>You can\u2019t gain new customers until you solve why you are losing the ones you have<\/span>.<\/span>\u201d<\/span><\/span>\u00a0<\/span> [\/et_pb_testimonial][et_pb_text admin_label=”Heightened competition” _builder_version=”4.20.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n

Heightened competition is the main reason a store needs to keep its customers close. A study by research firm McKinsey showed that in the years since the pandemic 35% of U.S. consumers tried a new brand and 77% changed the way they shopped to find products they needed. Supply chain disruption was the culprit for much of that change, but most of those shoppers said they intend to continue their newfound sources and behaviors.\u00a0<\/p>\n

Nesmith says superior inventory control, which includes a variety of suppliers and a pleasant shopping experience, is key to keeping consumers engaged.\u00a0<\/p>\n

\u201c(Consumers) don\u2019t tolerate outs,\u201d he says. \u201cStores aren\u2019t just competing with stores down the road. They have to provide an overwhelming shopping experience to avoid losing customers to competitors or online sources.\u201d\u00a0<\/p>\n

Another old retail axiom says about 20% of a store\u2019s customers produce 80% of its total sales.\u00a0<\/p>\n

Research shows<\/a> that existing customers, on average, are 50% more likely to try new products and spend 31% more than new customers. And new customer acquisition costs have increased by almost 50%<\/a> in the past five years. So, keeping the top 20% happy and shopping regularly is crucial.\u00a0<\/p>\n

\u200b<\/p>\n

[\/et_pb_text][et_pb_text admin_label=”Benefits of a Customer Incentive Program ” _builder_version=”4.17.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n

Benefits of a Customer Incentive Program<\/h2>\n

Incentive programs help stores build stronger relationships with all their customers. They also:<\/span>\u00a0<\/span> [\/et_pb_text][et_pb_blurb title=”Improve customer satisfaction and retention ” use_icon=”on” font_icon=”||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Improve customer” _builder_version=”4.17.4″ _module_preset=”default” animation_style=”slide” animation_direction=”top” animation_delay=”750ms” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Encourage repeat business ” use_icon=”on” font_icon=”||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Encourage repeat business ” _builder_version=”4.17.4″ _module_preset=”default” animation_style=”slide” animation_direction=”top” animation_delay=”750ms” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Differentiate your store from competitors ” use_icon=”on” font_icon=”||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Differentiate your store from competitors ” _builder_version=”4.17.4″ _module_preset=”default” animation_style=”slide” animation_direction=”top” animation_delay=”750ms” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Boost sales through offer redemption and peripheral purchases ” use_icon=”on” font_icon=”||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Boost sales ” _builder_version=”4.17.4″ _module_preset=”default” animation_style=”slide” animation_direction=”top” animation_delay=”750ms” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Increase brand awareness” use_icon=”on” font_icon=”||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Increase brand awareness” _builder_version=”4.17.4″ _module_preset=”default” animation_style=”slide” animation_direction=”top” animation_delay=”750ms” global_colors_info=”{}”][\/et_pb_blurb][et_pb_text admin_label=”Stores benefit, too” _builder_version=”4.20.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n

Stores benefit, too\u00a0<\/h2>\n

The information gained from customers through incentive programs is often more valuable than the purchases those customers make. Getting names, email addresses, phone numbers, and often age, family status, and income range gives stores a much better idea about their clientele and what they purchase and value.\u00a0<\/p>\n

Knowing what loyal customers are buying allows stores to adjust inventory to fit those wants and needs. It also allows them to seek additional suppliers for those items to avoid the out-of-stocks that Nesmith says can lead to lost customers. All this information can be utilized through a modern point-of-sale and business management platform to simplify ordering, improve inventory control, and enhance customer satisfaction.\u00a0<\/p>\n

Knowing contact information such as email addresses and cell phone numbers also opens avenues for stores to reach out with personalized incentives through emails and text messages. E-coupons are popular with retailers of all kinds. Research shows that nearly all (95%) of text messages are read within three minutes of being received.\u00a0<\/p>\n

\u200b<\/p>\n

[\/et_pb_text][et_pb_text admin_label=”Truly rewarding Rewards ” _builder_version=”4.20.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n

Truly rewarding Rewards<\/span><\/span>\u00a0<\/span><\/h2>\n

Points programs are pretty simple and the most popular type of customer incentive program. Members earn points through purchases and those points are often applied through discounts on future purchases \u2013 10%, 20%, or more. Some offer double or triple points to encourage larger purchases.<\/p>\n

The key to successful customer incentive programs is making sure the rewards are perceived as truly rewarding.<\/p>\n

Accenture found that members of customer incentive programs typically spend on average\u00a012% to 18% more than other customers<\/a>.\u00a0 According to the research firm, McKinsey<\/a>, loyalty programs can increase revenue from customers who redeem points by 15 to 20 percent annually by increasing the size of their purchases or the number of them.<\/p>\n

Ben Honeycutt, owner of Oak Knolls Hardware<\/a> in Orcutt, California, uses the customer management functions in his point-of-sale system to power his incentive program.<\/p>\n

\u201cI look at my customer listings and rankings. I find out who my best customers are. Last year, we bought some nice gifts and sent them out at the holidays,\u201d he explains, adding that unexpected gifts like that go a long way in building loyalty and retaining customers.<\/p>\n

[\/et_pb_text][et_pb_text admin_label=”Nuts and bolts of rewards ” _builder_version=”4.20.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n

Nuts and bolts of rewards<\/h2>\n

Many hardware suppliers and co-ops offer their own customer incentive programs. Ace Rewards, Best (Do it Best) Rewards, True Value Rewards and Orgill FanBuilder™ are a few. Many of these are omnichannel programs providing customers digital access to their \u201caccounts\u201d and offering both digital and hard copy coupons and incentives.<\/p>\n

However, stores needn\u2019t be part of a cooperative to have a customer incentive program. There are many third-party providers that offer rewards to independent stores. RepeatRewards features all the incentives the big-box, co-ops and online rewards programs have. Rich Rewards is another program that can be operated through a store\u2019s point-of-sale system that can keep customers coming back.<\/p>\n

Like Ben Honeycutt\u2019s methods, these programs are run through a store\u2019s POS and, in most cases, are automated through the supplier or co-op. Stores merely need to redeem coupons. Fully integrated customer incentive programs provide stores with reports on which customers are utilizing the rewards. Many of the co-ops have applications that further simplify the rewards process.<\/p>\n

[\/et_pb_text][et_pb_text admin_label=”Making rewards work” _builder_version=”4.20.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n

Making rewards work<\/h2>\n

Successful incentive programs rely on being effortless to use and require everyone at a store to be well-versed in the rewards. Associates must know as much about the details of the program and its members as they do about where products are inside the store.\u00a0They need to know to ask each customer if they are incentive program members, how to apply rewards, and often help customers take advantage of those rewards.\u00a0For many stores with successful incentive programs, \u201cAre you part of our rewards program?\u201d is the first question to customers at checkout.<\/p>\n

Retail technology also pulls a successful customer incentive program together. Modern point-of-sale systems or retail management platforms make it easy to sign up members, record sales, provide discounts, deliver communications to customers, and generally keep customers happy.<\/p>\n

\u201cThe actions taken in your stores everyday drive customer retention,\u201d Nesmith says. \u201cCustomer retention and increased ticket totals will drive increased customer counts which will drive increase revenues.\u201d<\/p>\n

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Upshot<\/span><\/span>\u00a0<\/span> <\/span> <\/span><\/h2>\n

Research from <\/span><\/span>Bain & Company<\/span><\/span><\/a> shows that increasing customer retention rates by 5% increases profits from 25% to 95%. Customer incentive programs are an integral part of creating loyal customers and attracting new shoppers.<\/span><\/span>\u00a0<\/span><\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Author” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n

brian bullock\u00a0<\/span><\/h3>\n

Author<\/span> [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"

Customer incentive programs are key for any retail business in creating loyal customers and attracting new shoppers. <\/p>\n","protected":false},"author":13,"featured_media":29117,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3,75,4],"tags":[169,28,171,172,93,170],"class_list":["post-29115","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-posts","category-grow-your-business","category-industry-news","tag-customer-incentive-programs","tag-customer-rewards","tag-oak-knolls-hardware-and-home-center","tag-orcutt-california","tag-paladin-data-corporation","tag-rewards-programs","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"\nCustomer Incentive Programs Reward Your Business, Too - Retail Science<\/title>\n<meta name=\"description\" content=\"Customer incentive programs are key for any retail business in creating loyal customers and attracting new shoppers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/paladinpointofsale.com\/retailscience\/home\/customer-incentive-programs-reward-your-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Customer Incentive Programs Reward Your Business, Too - 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