Everything businesses should know about loyalty incentive programs
A new concept in business is loyalty incentive programs to alter and impact customer behavior. However, people barely know that it is a fusion of the two programs used separately for various purposes – loyalty and incentive programs. The difference is like a thin line, and some use a general term for both of these. So, here are the differences to keep in mind.
These are intended for customers already engaged with the business and get rewarded each time they purchase something. The aim is to keep these loyal customers from going to competitors for similar products or services. Most loyal customers are more likely to stay if they know they will be rewarded for sticking by.
These give more to the customers to get more from them in return. Instead of the rewards like gift cards offered in a loyalty program, these give more value. For example, some brands offer limited or exclusive merchandise not meant for sale as a reward for their incentive programs. Cash rewards work just fine. But, giving away incentives like free tickets or restaurant bookings helps build an emotional connection.
So, one can say that a loyalty program gives minimal rewards to customers for each purchase. On the other hand, an incentive program rewards the customers as they reach their defined sales or business goals. So, the cost of each campaign differs, and so do the intentions. Some organizations also opt for hybrid loyalty incentive programs to bring the best of both to the table.
But despite everything, one should remember that loyalty programs help protect their customers while incentive programs boost sales and grow.