Rewards - Getting Started
- Silva, Carlos
- Lopes da Costa, Valentina
Contents
What are Rewards?
A Reward is normally a 0 priced product that can be ordered in exchange for loyalty points. For example, is a Whopper item reward worth 500 loyalty points. Only guests with 500 loyalty points in their balance and that are willing to spend it can redeem a Whopper reward for free.
The rewards program allow guests to earn and spend loyalty points. Guests earn loyalty points with any purchase that has a total larger than 0. For every euro spent, customer get X (a configurable) amount of loyalty points
Note: In certain cases, rewards can also have a price, however guests always need to spend loyalty points to be able to redeem a reward. An example of this is a guest has to spend 500 loyalty points and pay 2 euros to be able to redeem a Long Chicken reward. For more information read here: [DEPRECATED] Reward for money spent & loyalty points
Why Rewards?
The rewards program is important because with every purchase guest earn points, that they can then use to redeem a reward. This drives repeat purchases and increases customer frequency and margins. A transactional loyalty points and rewards based system is important in providing:
Immediate Incentive - rewards system provide instant gratification and creates a sense of excitement and satisfaction. It encourages customer to make repeat purchases to solidify their loyalty.
Tangible Value - rewards system allow guests to know the precise benefits they receive based on their transactions and makes them perceive the program as transparent and fair. It instills trust and confidence in guests and makes them more likely to engage with the program.
Customer Acquisition - rewards system can attract the attention of potential guests motivated by the prospect of immediate savings or great and immediate rewards. They provide a strong incentive for guests to try one of our brands' products. This increases the chances of acquiring new guests who can then develop long-term loyalty.
How do rewards look like?
Burger King
Popeyes
Firehouse Subs
