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Lessons in Loyalty: Rewarding With Points

Carolyn Schnare Chief Content Officer, Liquid Barcodes

05/29/2024

Rewarding with points provides customers with timely purchase tracking to motivate loyalty and increase spending.  

In the ongoing exploration of loyalty programs, this article focuses on the next step in the Customer Connection Cycle: Rewarding with points.

There are a few ways to reward loyalty and to track customer purchases. One of them is with stamps and we talked in depth in a previous article. Today we’re going to talk about points.

Step 5 in the Customer Connection Cycle: Rewarding with Points

In the last several “Lessons in Loyalty” articles we explored creating and running a successful loyalty program. This month, we will talk about rewarding with points.

First, we looked into loyalty program foundations with the 3 E’s (having easy, empowering, and engaging programs) and the 3 C’s (clear, compelling, and consistent promotions and communications). Then we talked about solidifying the customer relationship by giving an overview of the Customer Connection Cycle, covering recruiting members into your loyalty program, member engagement strategiespromoting the program, and finally in-store excellence. Now, we will talk about rewards.

Strategies for Successful Point Reward Loyalty Programs

When launching a retail loyalty points program, one of your initial decisions is to decide the currency to track member purchases. You track money spent or assign numerical points. 

Stamps are very absolute and track the exact purchase of certain items. Points, however, offer more flexibility to give more weight to certain products, offer additional points for accomplishing tasks, and establish tiers and statuses.

CCC Reward

10 Tips for Rewarding With Points for Loyalty Program Success

1

Award Points for All Products
Reward customers for all purchases, including fuel, in-store products, and carwash to avoid confusion. Allow points to be earned and redeemed in all categories (except age-restricted items like tobacco and alcohol when prohibited by law). Customize points allocation per product based on margins.

2

Award Points on Amount Spent
Award points based on the amount spent, not visits and transactions, to prioritize high-spending customers and avoid delays at checkout. With visit-based or transactions-based points, customers will attempt to pay in separate transactions or leave and come back, causing unnecessary delays at the register.

3

Reward Behaviors
Use points to reward customers for signing up, referring friends, sharing profiles, answering surveys, playing games, and sharing content. Celebrate birthdays with bonus points to build brand advocacy.

4

Create Customer Tiers
Recognize top customers with different tiers and offer exclusive benefits to higher tiers, creating an emotional connection and incentive to spend more.

5

Award Higher Base Points for Priority Members
Give higher base points to top-tier members to motivate them to reach and maintain higher tiers. Be sure to recognize them and celebrate their status whenever possible, too!

6

Better Burn Rates for Better Customers
Offer better conversion rates and lower point requirements for higher-tier members on select products.

7

Build in Generous Bonus Periods
Plan campaigns with double or triple points during key times to boost engagement and drive foot traffic.

8

Create Compelling Product Campaigns
Offer bonus points on specific products or categories supported by suppliers to increase sales and brand awareness.

9

Ensure Rewards are Accessible
Make rewards easy to redeem to encourage spending, trust, and recommendations. Highlight high-margin products as affordable rewards.

10

Allow Customers to See Unlockable Benefits
Show all members the benefits of higher tiers to motivate increased spending and loyalty.

Retailers Who Successfully Rewarding With Points

Old Irish Pub, a European restaurant chain, recently unveiled its new rewards app that is sure to keep customers buzzing with stamp and point rewards. The app also includes games, birthday drinks, and much more!

Old Irish Pub

A large convenience retailer in Europe, k kiosk, uses a combination of rewards to engage their customers.  Members earn points that can be redeemed for many products. The app offers a wide product variety for redemption which feels very flexible. Members can also earn stamps, receive coupons, play games, and find store locations in the app.

kkiosk points stamps coupons kkiosk points

A Swiss retailer, avec, is a leading convenience retail brand in Switzerland with 50 stores. avec is a tech-forward brand with autonomous (and manned) stores and a very functional mobile app. The loyalty program offers points and stamp rewards and includes games, location services, and more.

avec points

avec stamps

The Customer Connection Cycle Explained

This informative video explains more about the Customer Connection Cycle in this edition of the Liquid Barcodes Convenience Retail Loyalty Playbook video series.

Achieve Loyalty Excellence

Large or small, retailers have found that having a functional, sleek, easy-to-use loyalty app is the optimal way to stand above the competition.

Developing a distinctive loyalty program is essential in the dynamic landscape of convenience retail, where challenges abound. The Liquid Barcodes Convenience Retail Loyalty Playbook is your hands-on tool to make this happen.

We developed the Liquid Barcodes Customer Connection Cycle framework to illustrate how to strategically engage customers through various channels, converting them into loyal program participants. The framework uses proven loyalty mechanisms to ensure customers return sooner, becoming habitual purchasers. 

Recognizing the significance of a strong customer base in driving revenue, the key principle of the Liquid Barcodes Customer Connection Cycle is simplicity, ensuring your program is easy to understand, join, earn, and redeem. It’s not just a proprietary approach; it’s our shared strategy to elevate your loyalty program and drive your business to success.

Click here to download the first few chapters within the Liquid Barcodes Convenience Loyalty Playbook.

LoyaltyPlaybook Preview no shadow

About Liquid Barcodes

Liquid Barcodes is a leading global loyalty and digital marketing technology partner specializing in the convenience and foodservice industries. The proprietary, cloud-based technology platform allows retailers to create and manage their digital marketing campaigns with the “customer connection cycle” process to engage, promote, and reward customers’ activities in realtime across digital and media channels.

Liquid Barcodes loyalty platform is powering loyalty programs for industry partners across several global markets, by offering unique subscription and mobile payment programs, machine learning, personalization, gamification, loyalty, and other capabilities.

Learn more about Liquid Barcodes at LiquidBarcodes.com.

 

About the Author

Carolyn Schnare, Chief Content Officer, Liquid Barcodes

Carolyn Schnare has been involved with the convenience retailing industry for two decades with extensive knowledge of customer engagement and marketing, sustainability, and community outreach. Before Liquid Barcodes, Schnare worked at NACS (National Association of Convenience Stores) in a variety of roles from event production to membership and most recently as Director of Strategic Initiatives and host and producer of the popular industry podcast, Convenience Matters. Schnare currently anchors the popular Future of Convenience podcast, produced by Global Convenience Store Focus media group.


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Liquid Barcodes

Put a rocket under your loyalty program

With our loyalty platform, we help design and operate world-class, tailor-made subscription and reward programs that make sure your customers always come back.

Book a Demo →

We are trusted by global brands.

Convenience retailers all over the world have engaged and rewarded consumers with our tailor-made loyalty programs.

To our case studies →

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Convenience retailers all over the world have engaged and rewarded consumers with our tailor-made loyalty programs.

To our case studies →

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