The Power of Reward-Based Promotions

Are you struggling to add value, improve effectiveness and increase engagement for your promotions? Here are a few tips for you to think about when it comes to Reward-Based promotions.?

First, we need to understand the why. Promotions are the best way to communicate through the noise and communicate with your customers. There are several ways to accomplish this, and all play a place in a savvy marketer’s toolbox. But which one is the most effective? According to a recent study done by the Aberdeen Group “Next-Generation Promotions” Reward-Based promotions prove to be the most effective because they:

• Add more value
• Increase promo effectiveness
• Build more engagement

Let’s begin with promotions that add more VALUE. The single most important reason why your promotions should be powered by rewards is simply to add value to the promotion. Rewards do not discount your brand but do allow you to compete on price. Additionally, during the reward redemption process, you have the opportunity to collect valuable data from your most engaged customers. The data helps you better define buyer personas, purchase habits, and more accurately personalize future interactions. You can also use the redemption process to cross-sell or up-sell. Who doesn’t want that? Gathering this data and seizing and seizing these opportunities can lead to a 99% higher customer lifetime value than discounts and coupons.?

Secondly Reward-Based promotions increases the EFFECTIVENES of the promotion. According to research, reward-based promotions outperform discounts and coupon-based promotions. Offering a reward encourages customers to participate resulting in:

• More annual company revenue
• Greater performance in return on marketing investments
• Higher profitability per customer by 92%
• Higher year-over-year increase in annual revenue by 105%??????

Lastly it is extremely important to run promotions that build more ENGAGEMENT with customers. Reward-Based promotions are better than discounts and coupons because they’re part of the conversation. From the offer of a reward to the redemption and on into future communications, Reward-Based promotions allow you to engage with the customers where they are – online, in stores, or on their smartphones. These types of promotions encourage customers to not only buy your brand, but also to build a relationship with it, making them more likely to become a repeat customer. Consumers respond to these types of conversations, also making them more likely to provide you with valuable feedback and advocate for your brand. (Stay tuned for tips on referral-based marketing)

Managing and deploying promotions can be difficult. That’s why #BHN makes it simple with our industry-leading expertise. Feel free to reach out to me to learn more about how we can increase the value, effectiveness and engagement of your promotions.?