Customer rewards programs remain an important tactic in many loyalty marketers’ playbooks. However, the prevalence of these programs coupled with what is often a limited value proposition for customers, has led to increased consumer skepticism. For rewards programs to be successful in achieving desired customer behavior and loyalty, marketers must not be hasty in designing programs, but rather take the time to consider the tradeoffs of various program models and structures.
The below Customer Rewards Program Earn Models infographic illustrates the four most common “Earn Models.” These models determine how customers earn value through their program membership and patronage of the business, and have a heavy influence on the resulting customer experience. Which of these Earn Models make the most sense for your customers?
For a more comprehensive discussion of Earn Models, their inherent tradeoffs, and fit for specific types of business, download Lenati’s whitepaper “Designing the Right Rewards Program for your Business,” or read our industry-specific commentary for High-Tech, Retail, Banking, and Insurance.