For many companies it is not easy to reward their customers and increase their profits. Especially if the reward is more discount and its cost goes to the bottom line.


In daily practice we come across all kinds of promotions that try to reward spending or customer loyalty. But. . . . although some promotions may look very similar to others, the results in our profit and loss account may be completely different.

Example: A Pet Club offers a £5 bonus for every £50 spent on animal products. What do you think of this action? The customer receives the reward regardless of whether it takes a month or a year to reach this figure, or regardless of their previous spending. Therefore, there is no incentive to increase your purchase of animal products (which we assumed was the goal).


a) (Obviously!) to set a deadline.

b) Segmenting customers by their spending and offering discount rebates for purchase volume.

c) To periodically offer relevant information to these customers (a newsletter, a customer club with a mascot with web publications, mobile application, etc) , and with offers financed by suppliers. This option will give an incentive to spend more on these products, and at the same time, with little cost to the retailer.

The price promotions are the ones preferred by consumers according to the annual report Worldpanel Distribución ; on the Retail sector, carried out by the consulting firm Kantar Worldpanel. Thus, 78% of households prefer a direct discount on the price. Furthermore, according to this same study, specific discounts for loyalty card holders are one of the promotional levers most valued by consumers (34%).

However, it is not only discount ! The combination of financial and emotional rewards has proven to be the best combination to reward our clients. When we talk about emotional rewards we mean a combination of activities (including games) that make the customer experience more satisfying.

These activities include:

- Holding events in our stores that surprise our customers,

- Gifts on certain key dates: birthdays, Mother's Day, Christmas, etc.

- Invitations to product tastings, or cooking courses, talks on a topic of interest to that group of customers, etc.

Choosing what kind of combination between emotional rewards or financial incentives will depend on what we have answered to the five basic points that we should consider for each promotional plan:

1. What is our main objective? 2. What behavior are we looking for? 3. Which clients do we want to focus on? 4. What period? 5. What other alternatives do we have?

In conclusion: Marketing plans should always be made with the objective in mind: What customer behavior we are looking for, and what behavior we do NOT want to reward.

Carry out a study of your customers to be promoted beforehand, reward their buying effort, assortment or frequency, choose the rewards and make a previous assessment so that you can compare with the real results. Learn from the process, vary what doesn't work, and follow up by gaining adherence. Contact Analytika and tell us your objectives and we will help you to achieve them! In most cases it is not necessary to have a large budget.

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