In this article, we’ll look at two main approaches to delivering rewards in your loyalty program and the types of rewards you can offer.
Part 1: Two Approaches to Delivering Rewards
First, there are two global ways to handle how rewards are delivered and who is involved.
- Customer-Driven Redemption: In this approach, the customer handles everything themselves. For example, a customer can open their digital loyalty card in their Google Wallet, see the voucher they’ve earned, and show it directly to the cashier. This means the customer is in control and there’s no need for staff to be involved in the reward process.
- Staff-Assisted Redemption: Alternatively, the staff can handle rewards. In this scenario, the cashier sees a notification inside their app or POS system when a customer has earned a reward. The staff can then immediately give the customer their reward or see which voucher the customer has available and process it on the spot.
Part 2: Two Types of Reward Timing: Now or Later
Next, let’s talk about the timing of rewards. There are two main types:
- Immediate Rewards: This is when a customer earns a reward right away—like the tenth coffee free. The cashier sees the reward and immediately gives the customer their free coffee on the spot. It’s a simple and instant way to deliver a reward.
- Future Rewards with Vouchers: Sometimes you want to let customers save their rewards for later. This is where vouchers come in. A customer might earn a voucher for a free item or a discount that they can use on a future visit. This is especially useful when your system is integrated with a POS and tracks spending—for example, giving a stamp for every $10 spent. With vouchers, customers can collect multiple rewards and redeem them whenever they choose.
By offering both immediate and future rewards, you give customers flexibility and make your loyalty program even more appealing.