Do Customer Loyalty Points Work?
Customer Loyalty, customer, customer retention
The cost of running and maintaining the "Reward Points" far outweighs the benefit to our business and we suspect that it is the same for other smaller online only businesses. After all any customer loyalty systems is designed to benefit the business and at the same time offer benefit to the customers. However in our case that did not happen on a scale that was feasible to run for a long period of time.
It is our belief and from our experience that for a small business running the loyalty and reward points is cost prohibitive especially if the business is small (micro online business). Based from our experience the best way to maximize return is to offer the customers personalized "discounts" and incentives, rather than one blanket rewards for all. Although stats show that on a long run the reward points work the stats also show that most of the businesses that run and have success using the loyalty and reward points are very large, such as: Shoppers Drug Mart, The Bay, Sears Canada etc. read the Full article at our website.
, Customer Loyalty
, customer retention