There are many smart ways to reduce cost without compromising the program effectiveness. Here are some ideas:
Reduce reward costs
The key is to offer rewards that have higher perceived value than the actual cost:
- Source rewards from manufacturers or distributors who want to promote their products at your store. You are more likely to get good discounts from them.
- Offer overstocked items that would otherwise get marked down. When these items are offered as rewards, customers often perceive value at the level of the standard price.
- Offer tickets to local events. These rewards have very high perceived value, but often can be acquired inexpensively.
Reduce operation costs
The key is to utilize existing resources so you do not have to build everything on your own:
- Use pre-built design templates and email copy examples to save on design cost.
- Work with a loyalty program solution like Toka to save on planning and implementation cost.