All company executives are looking for a way to get customers to remain loyal. This is no easy task. The Internet has bombarded everyone with more than enough advertisements for people to second guess their favorite company. The business that is going to lure customers is the one that finds a way to make them see value in coming back.
The Points System
There are customers that are pumping gas and spending money on coffee at a gas station want points. The people that are shopping almost exclusively in grocery stores want points. They want to be rewarded for their loyalty. If a business has customers that are loyal without any of these things it can become easy for these customers to get lured away with a program that is much more engaging. Other businesses that have programs that are designed to make customers curious about the points.
The Reality of the Customer Rewards
The thing that people find the most interesting about customer rewards is that some of these rewards must be activated. Customer loyalty program companies may allow people to sign up, but all the rewards are not always instantly placed on the card. The customer may have to click on an email that provides a special activation. People are not always going to have the desire to go through all the extra steps. Sometimes people will forget to activate these things. There are so many things that could happen that causes a person to not get the reward. That can be a real problem for anyone that may be using the card regularly but forgetting to activate the award. Some people may check their emails regularly to see what kind of awards are available.
Expiration for Customer Rewards
The loyalty program has a lot of good points, but many of these perks can expire if you do not take advantage of these things. There are gas stations that may give free coffee, but this may only be for a day. Some restaurants may offer some type of free dessert, but this may also come with an expiration date. The novice rewards customer may assume that points last forever. They may assume that they are building up a plethora of rewards on a card that will always be accessible. This is not the case. The rewards will most definitely expire so customers need to be mindful of this. They need to find a way to keep track of the rewards and remember to use these rewards.
Points vs. Reward Systems
The points, unlike the rewards, do not expire. People can accumulate points that, unlike rewards that expire can continue to build. This is often what credit card companies do. These companies will allow people to build points that can be redeemed for gift cards at any time that the customers wish. This is another form of loyalty that keeps people using a specific credit card. These various programs build business and ensure loyalty as competition heats up.