CRM Reward Points Systems

CRM Reward points systems, or loyalty programs, are an effective way to reward loyal customers for frequenting your business.

Considering that existing customers spend on average 67% more than new customers it pays to encourage your loyal customers to remain loyal.

Loyalty Programs

Loyalty programs can offer customers points accumulated with each dollar spent, redeemable for free merchandise or direct discounts on purchases.

They can offer discount coupons for merchandise or access to products prior to the release of those products to the general public.

Some programs print catalogues allowing customers to purchase merchandise using a combination of cash and points.

There are nearly as many versions of rewards points systems as there are companies that offer them.


The drawback to these types of loyalty programs is that every business seems to have one.

The average North American is a member of over 25 different customer loyalty programs, but actually participates in 12 or less.

The plethora of swipe cards, stamp cards, and key ring tabs needed to participate in 25 loyalty programs borders on the ridiculous.

Consumers quickly gravitate to the few programs that give them the most satisfaction to use and abandon the rest.

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The Best Programs

Finding a program that truly encourages and rewards loyalty in your customers is not always easy.

People actually use programs that fit some general criteria.

The program must be essentially effortless to use

If it involves extra time and work, such as filling out surveys or having to redeem small savings by filling out online forms, most people just won’t bother to follow through.

For a rewards program to operate successfully, it needs to have Good rewards.

Good rewards are ones that are substantial enough to feel like an actual benefit for the customer.

When they get ten cents off on a $30.00 purchase it feels more like an insult than a reward.

These type of piddly rewards are not conducive to loyalty or an improved opinion of that company.

In short, for a loyalty program to be effective, it has to have tangible benefits for the customer.