Rewards programs are a commonly used method to earn customer loyalty and keep business coming in. If you own a small business, consider setting up your own loyalty incentives: when used wisely, these programs can be a key part of your marketing efforts. However, it’s also important to make sure you have an easily trackable system to keep your bookkeeping records manageable.
Types of reward systems and rewards
The first step to setting up a rewards program is to decide what kind of system to use and what kind of rewards you want to offer. There are a few broad categories:
- Email lists: This system incentivizes customers to give their email addresses in exchange for rewards, sale notifications and future discounts. It’s a good way to keep in touch with your customers, and a simple program to implement, although they may be reluctant to share their emails.
- Punch cards: Punch cards are another simple solution. Each purchase or monetary increment gets a stamp or punch. When they spend a certain amount of money or complete a specific number of visits, they may get an item free or a certain discount. It’s harder to collect customer data, and there’s no electronic record, but it’s easier to implement than other systems.
- Scannable cards: Scannable cards are a little more technologically advanced, and allow you to collect and track customer data. However, you’ll probably need to find a company that provides these cards and tracking systems, unless you want to build yours from the ground up.
- Mobile apps: Your point-of-sale system may have app integration, which can make a mobile rewards program easy to use. Customers may be reluctant to download a mobile app, so consider offering immediate rewards. On the other hand, ready-made apps are easier to track, so you can see exactly which promotions are most effective.
So, which type of rewards would you like to offer? Coupons are one of the easiest to track: the information will automatically be tracked in your POS system when customers use a coupon or code, so you’ll know when they’re used.
Some companies prefer tracking purchases and offering rewards points, which can be redeemed later for discounts or free items—but keep in mind that if you use a system like physical punch cards, you’ll need to manually enter that information into your records. This can be more time-consuming than necessary.
Tracking your rewards system
Once you’ve decided on a system, it’s important to decide how you’ll track which discounts or rewards you’re given, as well as customer information. This information is not only key for your bookkeeping records, but it also provides insight into how well this marketing promotion is working for you.
If you partner with a third-party company or app, most have tracking systems built in. Look for a system that will allow integration with your bookkeeping software. This offers a more streamlined and accurate experience, especially if you can automate the recordkeeping process.
When you need assistance tracking your rewards programs—and how they fit into your bookkeeping records—the team at MCG Solutions can help. Call today to get started.