Most companies and business organizations tend to give out gifts on a regular basis to their customers, they believe this would help to generate a stable traffic and as well create some level of loyalty amongst the customers. While this helps to some extent i do not believe its that easy to get customer loyalty. customers would easily shift to the next person once there is an issue or once they find a better option.
Can rewards really create loyalty in customers?
- Thread starter eldavis
- Start date
Actually rewards doesn't really make customer stay , it only make them more focused on the reward part and leaving the important thing to do , rewarding customers also make competitors reward their customers too thereby leading to who gives the most gift.
Giving rewards has been implemented since there was no internet, mainly done by grocery stores and sales agents, to their customers, in general they give rewards at the end of the year, in the form of goods, sometimes they give discounts at certain times.
i believe giving out rewards isn't necessarily met to make the customer loyal rather it's a thank you gesture for patronizing your business where they had the option of 1001 other businesses, even the bible says that all good deeds will be rewarded. but i do believe this gesture will always be in their memory no matter how the relationship between them and the company turns out.
I think if the rewards are attractive, they can help to create customer loyalty. There is a chain store here which offers cash vouchers to customers when their purchase is up to a certain amount. When you buy $8, you can a $3 voucher. This program is very popular and they have many loyal customers.
I think a well deserved award will really maintain customer loyalty. So, as a business owner, you have to consider this, whether customers are satisfied with existing awards.
I don't believe any organization should base it's customers loyalty on rewards. It is not enough to make a customer loyal. It should rather be based on quality of products and service delivery.
That would be very possible customers to retain. They most likely appreciate a business owner who rewards them something. They feel proud and big. That's one factor for customer retention. It bears good effect to business.
