Rewards programmes have quickly become the trend in retail stores, but are they really worth it? Do retail outlets benefits from rewards programmes, or do customers take complete advantage of the system? Before initiating a rewards programme, it is best to have a good understanding of the pros and cons of such, and how it can affect your business.
With the existing threat of online shopping, retail outlets need to take a careful look at how rewards programmes can affect their bottom line – time and time again, loyal customers prove to produce more revenue than casual shoppers but how does one go about implementing a rewards programme that encourages that shopper to spend more while still benefiting from the system? The goal would be to implement a system that allows the business and customer to benefit, and ensuring that they keep returning to purchase. Let’s take a look at whether a rewards system is a lucrative option for your business: