Four Models for Implementing a Reward Program
After defining a customer reward system, you need to be able to implement it precisely. In the modern world, numerous models are defined for this system. Generally, there are four models for implementing customer loyalty and reward systems. 9 The first model is designed based on applications compatible with mobile and computer. 9 The second model is designed on smart cards, and the information on these cards is read by card readers and they either contain magstripe (magnetic stripe) or are scanned based on barcode.
9 The third model is designed based on email and people who have emailed the company constantly receive discount offers and check their points. 9 The fourth model is working with label or punching the card. The card is punched every time a purchase is made. Many companies are still working with cards, but using applications definitely gives better efficiency.
Using email is not very common, but it is used as a tool along with applications. The main problem regarding card-oriented method is that customers must always have the card at their disposal. Customers should always carry the cards to be able to use it. These cards are not always connected with internet or software, so customer must make them accessible to be able to use it when the needs arise for it.
Recently, one of the biggest North American electronics stores provided this option: when customers don’t have their cards with them, their credit will be identified if they enter their phone number. As simple as that, they have solved the issue of not having the card. It is impossible to simply change the whole old loyalty systems but they have handled the issue by such simple adjustment.
For many people, it’s difficult to carry numerous cards around. Some people are members of a customer club, but they cannot benefit from this membership because they don’t have the card with them when they are making a purchase. However, this problem is solved in the method in which application is used and there is no need for customer to carry an extra card.