How Do You Establish Credit Card Reward Programs?
If your company issues a credit card, establishing a rewards program can be a great way to increase customer loyalty and card usage, and generate new business. Credit card rewards can take many forms such as rebates and discounts, free travel and/or merchandise, and other special “perks” that you can make available to cardholders. However, with a large variety of reward cards already available, you’ll need to design a program that will be compelling to your customers to achieve positive results for your company. Initially, you’ll need to do some research about customers to determine what kinds of rewards will motivate them to use their cards more often. You can do this by interviewing customers in person or by phone, holding focus groups, and/or mailing questionnaires. Analyze demographics, and determine interests and discretionary spending patterns. Develop a preliminary reward scheme based on the information gained in your marketing research. Tailor your rewards to your customers’ ex
