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Now that’s a good (loyalty) point: 5 surprising benefits of introducing a customer rewards scheme

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All businesses strive to create an environment for returning customers – and, perhaps the most famous tactic is to introduce a customers rewards scheme. We all know the main benefits of implementing a rewards scheme, but let’s look at some of the lesser known benefits.


Gaining Customer Data


Companies have known for decades that the key to marketing is to try and understand the customers’ habits in order to provide the required services they need. However, since the invention of the internet, companies now have an unparalleled amount of information at their fingertips.


We now live in such a data driven world that many businesses operate purely to try and gain customers data, in order to sell it on to other companies. As quoted by Forbes, the large data collector Acxiom’s data now accounts for 12% of all direct marketing sales in the US. This raises a lot of ethical and privacy concerns which should rightfully be addressed.


However, as a company you can operate a customer rewards scheme which safely and privately gathers your customers data to build a thorough understanding of their buying habits.


Lower Marketing Costs


In line with the benefit of data collection, a key reason to implement a customer rewards scheme is the lower marketing costs. Instead of spending a huge percentage of your capital to research and market towards your customers, you will have much of the information available already from the rewards scheme.


You can carefully track each customer’s behaviour and spend less time using the traditional marketing tools that the rest of the market are using.


Setting the right price


As you can track each purchase someone makes through the customer rewards scheme, it allows you to precisely set the right price point for each product. This is commonly known as dynamic price points.


Amazon is famous for using dynamic price points, as they constantly change their prices to gain an advantage over their competitors. Another key example is Uber and their dynamic price algorithm which constantly tracks their user base worldwide.




Gamification is the process used by businesses, websites, and apps to use psychological triggers to encourage the required behaviour from users. We can now see gamification throughout our online culture as thousands of platforms fight for the users attention.


Gamification targets one key psychological aspect of our brains, a feel good chemical called Dopamine. By using a simple customer loyalty rewards scheme, we can trigger the Dopamine in the users brain in order to incentive repeat purchases.


Pick Your Customers


Traditionally, we believe that the customer has the power to pick and choose who they buy from, and all of the power is in the customer’s hands.  However, when executed correctly, a good customer rewards scheme can help you spend less time focusing on those customers who aren’t as profitable as others.


In line with the gamification aspect, you can use your rewards scheme to correctly identify the profitable customers, and continue to incentivise their behaviour.


Final Thoughts

Now that you understand not only the well-known benefits of a customer rewards scheme, but the surprising ones too, it is clear that such a loyalty scheme can help your business to grow for many years to come.



Kossi Adzo is the editor and author of He is software engineer. Innovation, Businesses and companies are his passion. He filled several patents in IT & Communication technologies. He manages the technical operations at

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