But why does this work? The simple answer is that implementing a rewards and loyalty programs not only keeps your customers engaged in your brand, but also incentivizes buyers to keep coming back indefinitely. This can be challenging when you first start out with a new program, so we came up with a list of 4 tips that you can begin implementing in your business.

Tip #1: Keep It Simple

The last thing you want is a confused customer. Confused customers will usually not turn into repeat customers. Always put your customer experience at the forefront of your business decisions, no matter what you're implanting! To do this, be sure to make your program easy to read and understand for both earning and redeeming points. This will ultimately increase your conversions and build a deeper relationship with your customers. One common example is to give them 1 point for every 1 dollar spent with the end goal of getting an item for free after obtaining a set number of points. Easy right?

Tip #2: Never Set Expiration Dates

It can be tempting to to set expiration dates for your customers rewards because it incentivizes them to come back sooner than later. Don't do this. It's not going to make them happy knowing that they lost something that was given to them. By nature, humans don't like to lose things they feel they've earned and you do not want them to have any ill feeling against your business! Instead, try to understand why people do not use their points (if you see this commonly occurring). If your business has an Ordering App, It may be a good idea to send out reminders to people with unused points via Push Notifications or SMS. Get creative with it!

Tip #3: Reward The Right Actions!

Done correctly, your Rewards program will reward your paying customers for taking the right action, spending money! Don't follow the old way of using punch cards that give them a free item after purchasing the same item a dozen times. This may send the signal to not buy the other items your Food Truck or Restaurant offers. Instead, incentivize them to spend more money. The goal here is to increase your revenue and profitability, so be very sure that your program is reflective of that. Using the points per dollar system is a great idea for this. On the flip side, you may want to promote an event or special item of the day and could use your rewards system to get more people to show up. This is especially true if you have a good Ordering Technology System or App that your customers regularly interact with!

Tip #4: Convenience is Key

Convenience is going to be what keeps your customer engaged with your rewards program. Collecting and using points should not only be simple but very convenient to use. Be sure that your customers can easily check their balance and redeem their rewards while ordering in person, online or through your Mobile App. We recommend that you don't have them carry around a punch card, but instead offer your points in digital format. There are a few different ways you can do this. You could offer a digital loyalty card that customers can keep on their phones or create your own system that allows you to lookup your customers with an ID code or phone number. However, if you have an Ordering App, it will keep all of this organized and easy to use at checkout right on your customers phone after they download your App from the App stores.

Conclusion

Using points should be a very positive experience for your customer. This is a huge value that your business is offering to people, so making sure they enjoy the process is important. After implementing a good rewards program, you'll have people coming back and telling other people about how great your business is to eat at!