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Rewards drive behavior, whether you’re training your dog to sit, potty-training your toddler or encouraging specific buying habits from your customers. By rewarding the behavior you want and not rewarding the behavior you would like to discourage, you can generally predict the direction a behavior will trend.

Perhaps the most crucial part of customer loyalty programs are the rewards, and a good reward will accomplish many different things. We’ve provided a list of the eight functions of a good reward. We suggest you evaluate your rewards individually to determine if the rewards you’ve employed in your loyalty program are fulfilling their overall purpose.

1.  A Good Reward Provides Your Customers a Reason to Participate.  
2.  A Good Reward Says “Thank You” to Your Customers. 
3.  A Good Reward Encourages Customers to Supply Useful Data.  
4.  A Good Reward Changes Customer Behavior. 
5.  A Good Reward Retains Existing Customers.  
6.  A Good Reward Attracts New Customers.  
7.  A Good Reward Differentiates Your Business From Your Competitors.  
8.  A Good Reward Improves Your Relationship with Your Customers.

This blog is condensed from the Driving Retention blog, your one stop resource for customer loyalty solutions. To see more detail on each function, visit and read "The Function of the Reward."

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Tags: customer, loyalty, program, rewards


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