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Do Rewards Really Create Loyalty?

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As businesses everywhere are beginning to recognize, offering rewards really can create loyalty. They can help you not only build up a loyal following of customers, but also boost staff loyalty. Giving workers rewards for a job well done shows the company’s appreciation for their hard work. In turn, employees are less likely to look elsewhere for a new position. Meanwhile, offering customers incentives for making purchases or taking certain actions makes them more likely to buy from you again in the future.

Why Is Staff Loyalty So Important for Businesses?

Having a loyal workforce is something that is imperative for companies today. First, loyal workers are happier, and happy workers are more productive. They put more effort into their everyday tasks and achieve more in a shorter timeframe. Employee loyalty also reduces staff turnover, which has become a huge challenge for many companies. It is expensive and time-consuming to recruit and onboard new team members, so retaining the ones you have is best for the business. In addition, those loyal employees help you attract top talent when there is turnover.

When a company has a loyal workforce, it also creates a good impression of the business. Customers see that staff members are committed to the company, which in turn makes the company look more reliable and trustworthy.

READ MORE: 7 Reasons a Points-Based Loyalty Rewards Program Is So Effective

How Do Rewards Increase Employee Loyalty?

Giving rewards to employees can increase their loyalty. Companies can offer incentives for achieving a number of goals. These may include: 

  • Hitting or exceeding targets
  • Completing projects
  • Collaborating well on projects
  • Achieving a goal 
  • Going the extra mile for the business

Rewards boost employee loyalty by showing that the company appreciates its team’s efforts. That helps to improve employee morale and self-esteem. If workers feel good about themselves in the workplace, they are more likely to remain with that business.

Why Is Customer Loyalty So Important for Businesses?

While having a loyal workforce is essential, ensuring customer loyalty is equally vital. Attracting new customers is more expensive than retaining existing ones. Companies also benefit from more opportunities to upsell to a loyal customer base. Customers who have a strong relationship with the brand are more likely to buy more or upgrade. Not only that, but there is a greater chance of those customers spreading their positive opinions about the brand to others. As a result, it’s possible to increase the customer base exponentially.

Businesses also benefit from more opportunities to collect more relevant data from loyal customers. They can use these insights to inform marketing strategies that help the brand in the long term. 

How Do Rewards Increase Customer Loyalty?

Offering a loyalty program or giving gift cards as rewards for taking specific actions increases loyalty in several ways. Customers feel more valued and appreciated. That leads them to develop a stronger relationship and connection with the brand. They are also likely interact more with the brand in order to earn more rewards.

How Does a Customer Loyalty Program Work?

A customer loyalty program can work in one of two ways. Customers can receive instant rewards in the form of virtual gift cards, or they can receive points for taking action. Those points accumulate with each action the customer takes. Eventually, they can exchange their points for a reward of their choice. 

What Kind of Rewards Are Best for Boosting Staff Loyalty?

For employees, both monetary and non-monetary rewards have their place. Some popular rewards include:

  • Verbal or written praise
  • Physical gifts branded with the company logo
  • Staff activities such as social events and meals
  • One-off cash bonuses
  • Pay raises
  • Gift cards 

Gift cards are a great choice because:

  • They are versatile. They come in lots of different options to suit different tastes and preferences.
  • They come in different amounts and currencies to suit all needs.
  • Recipients prefer to get gift cards to spend on whatever they want.
  • They are easy to send via email and use online to make purchases.

How Do I Set Up a Rewards Program for My Customers or Employees?

Rybbon.net is on hand to meet all your rewarding needs. Rybbon offers both instant gift card rewards and points-to-rewards for loyalty programs and communities. Discover what Rybbon can do for your business to boost customer and employee loyalty.

Related Topics:

Make Employee Rewards More Powerful by Giving Them Publicly

Rybbon on Rybbon: How We Use Incentives for Engaged Customers

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