Rewards program possible?

[bx1]

Hi All,

I've been searching for awhile but can't seem to find if there is a contribution for creating a rewards program or if anyone is interested in one. The idea of a rewards program is when customer's checkout with items they get reward points which can be redeemed on items on their next visit (making them more likely to come back). I think this would be an excellent module to have. Does anyone know of where I could find one of if anyone is interested in making one for Zen Cart. I believe OsCommerce may have a module similar to this but I'm not sure. Thanks!

[yellow1912]

Actually I have asked someone to code this (since I don't have time). It might take a while to. The idea is to use the already coded Store Credit mod and add more functions.

[swguy]

... The idea of a rewards program is when customer's checkout with items they get reward points which can be redeemed on items on their next visit (making them more likely to come back).

This topic comes up periodically, and it always perplexes me.

I have never seen a study that supports the assertion that a loyalty program is a strong (say, top 5) motivator in a customer decision to do repeat business. And I have seen marketers argue that a loyalty program coupled with a bad customer experience increases the probability of negative word of mouth.

Is there hard evidence that loyalty programs are a critical driver in your space? It just seems like a huge administrative headache to me with very little payback.

[yellow1912]

I have seen the percentage of returning customers increases when a discount coupon is sent to them after each purchase. Of course, the quality of products and services must be good to begin with.

[swguy]

I completely agree - but discount coupons are a different animal from rewards programs.

[yellow1912]

That's why I want to try. You won't know the correct answer for your site until you actually try it out.
While a coupon with an expiration date can create a feeling of urgency, store credit has it own advantage too: customers don't have to keep track of it.

[swguy]

I will be interested to hear about your experience. Please keep us posted!

[bx1]

Hey,

I've never seen any evidence to suggest that a rewards program works, I just think in my personal experience it does make me want to go back to the store if I can get something back. It doesn't work with everyone but I believe even if a small percentage of customers come back to the store that is a big plus. I've only just started out so trying to build up a client base is very important to me. Do you think there is other ways that are more effective?

[swguy]

I'm a huge fan of coupons. Check out this Harvard study which suggests they create a "small windfall" effect.

http://mailchimp.blogs.com/blog/2007...coupons-m.html

I'm also a huge fan of "Free shipping over $50" type offers. Amazon has trained us that this is the natural model for shipping. Anything else, in the words of Seth Godin, "just doesn't feel right."

And of course I'm a huge fan of Better Together and friends. :)

Scott

[Johnmans]

This probably is a "local" issue. We (the dutch) just love loyalty programs. In physical retailing we even buy points at checkout, to collect the points and trade them in for something worthless. YES: I would like to try a virtual version of this on my shop.

Regards, John