How to Offer a Rewards Program to Customers

More and more companies are offering rewards systems to customers to stay competitive and profitable. Airlines offer frequent flier miles, grocery stores offer bonus cards and credit cards offer money back on purchases. In order to implement a customer rewards system, an organization must research the needs and wants of its existing and potential customers as well as the rewards offered by companies in the same industry. Statistics can be a useful tool in gathering information necessary to ensure the success of customer rewards systems.

Things You'll Need

• Statistics background
• Questionnaire
• Sample

Instructions

Customer Rewards Program

1. Create a research plan. To conduct research, an organization must have a basic plan of what kind of information to collect.

2. Develop customer questionnaire to determine the wants and needs of customers. This is a form of primary data. Secondary data can be collected from previous research.

3. Determine the levels of measurement to effectively analyze the results of the questionnaire.

4. Administer a questionnaire to existing and potential customers. Customers may also voice opinions and concerns to employees. This information will be valuable to determine the features of the customer rewards system.

5. Summarize and organize the gathered information. Based on the results, the customer rewards system should reflect the needs and wants of the customer.

Tips & Warnings

• -Stay away from ambiguous questions, as the results will be of little help in determining what the customer wants.

• -Be straightforward and do not use too many yes or no questions.

• -Provide plenty of space for customer feedback.

• -If administering questionnaires online, provide drop down menus to avoid confusion.

References

• Statistical Techniques in Business & Economics 12th edition; Lind et al; 2004