Companies focusing more on customer rewards in tough economy

Posted Apr 11, 2013 by Andrew Moran
In this tough economy, companies are finding ways to entice customers to shop at their business. One method that has been proven effective time and again are customer rewards programs, otherwise known as loyalty appreciation.
Whether it’s a big corporation or a small-business, companies attempt to show their appreciation for their customers. By doing this, businesses hope to draw in a larger clientele and generate a bigger bottom line. Of course, both sides of the counter have different definitions of customer appreciation. Nonetheless, it’s been effective.
There are a number of rewards programs that are offered to customers. When it comes to a large company, the store may offer free items with a $50 purchase or provide notifications for upcoming sales or promotions – others have things like Air Miles and a points system.
For small businesses, it may not be as lavish, but it still could be effective: free shipping, membership upgrades, personalized messages through Facebook and Twitter, thank you notes, perks and more.
According to Inc. magazine, companies in the United States spend more than $2 billion annually on loyalty programs and it appears to be helpful. Studies have shown that the average household is a member of 14 different rewards programs.
By remembering a customer’s business, providing dependable products and services and doing things that competitors don’t can certainly lead to a beautiful friendship between business operator and customer.
“They're probably worth five or six times more than everyone else, the other 90 percent," says Bob Konsewicz, a strategic consultant for Maritz Loyalty, which has worked with AT&T, Bank of America and General Motors, in an interview with the business news outlet. "When you design those programs, you really want to design it for your best customers."
One company is taking the customer rewards initiative to a whole new level. Loyaltyworks is an Atlanta, Georgia-based firm that creates, produces and manages incentive, reward and loyalty programs that generate success in the world of business.
Established more than three decades ago, Loyaltyworks offers solutions that build employee-customer relationships, increase profits and revenues and encourage wanted consumer behaviors with rewards. It understands that customer loyalty does more than just garner sales, but also create important customer insights, establish new product acceptance and improve channel partner affiliations.
Loyaltyworks performs these goals by utilizing its RewardTrax reward platform, which is considered to be cost-effective, large and innovative. Overall, it initiates key solutions in the competitive incentive industry, such as sales team motivation, corporate wellness and channel sales and marketing. Furthermore, its points-based incentive plan is supported through an advanced online technology, program management, client communications and analytics.
Its workforce of 70 employees works with various industry sectors, including agriculture, entertainment, finance, manufacturing, real estate, retail, transportation and pharmaceutical. Indeed, it has clients in all shapes and sizes.
The website also features a news blog that provides tips and tricks for businesses, like how to engage with Generations X and Y, how certain rewards programs flounder and how to communicate with employees. Loyaltyworks can be found on Facebook, Twitter and LinkedIn.