Whether they are worth it.
WHAT A LOYALTY SCHEME DOES
Gives customers a reason to return rather than trying elsewhere.
WHEN THEY WORK
Frequent, low-value purchases Where competitors are similar Where the customer has a genuine choice each time
WHEN THEY DO NOT
Infrequent large purchases Where the customer returns anyway Where your differentiator is quality, not price
THE SIMPLEST VERSION
Buy a number, get one free.
Understandable, cheap, effective for the right businesses.
WHAT TO AVOID
Complicated point systems nobody understands Rewards so distant nobody reaches them Schemes costing more than the loyalty they produce
THE CALCULATION
What the reward costs against the additional purchases it produces.
WHAT FREQUENTLY WORKS BETTER
Remembering the customer A small unexpected gesture Better service
THOSE COST LESS AND MEAN MORE
WHAT TO TEST
A simple scheme, measured.
If repeat purchase does not increase, stop.
