Start Rewarding Your Members With What They Really Want

August 13, 2012

By: Rachel O’Holla

“Studies show that people attach more value to a reward that they find personally meaningful versus one that is selected for them.” – Incentive Marketing Association

Point based incentive programs work because they let people choose their reward with their hard earned work. Research shows that 85% of Americans are participating in at least one loyalty program, which means that people are getting used to receiving something in return for their patronage. Points empower customers and employees to choose the rewards they really want versus ones that are selected for them.

Why points?
Points give the employee or customer many choices. They can be used immediately for rewards such as movie passes or an iPod shuffle or they can be saved and used for amazing big ticket items such as 50″ flat screen TV’s and life experiences like travel vacations and spa retreats. These rewards make a lasting and meaningful experience for your customers and employees that they will always remember and associate with your company.

Why not cash or a specific gift?
Cash bonuses, while a great reward on impact, are more likely to be spent on necessary purchases like gas, food, or bill payments. It’s not always easy to keep track of where money goes, so that cash bonus is not a lasting, memorable or meaningful reward. A specific gift is not ensured to satisfy everyone, all of the time. With points, your participants choose their own great rewards that they will always remember and associate with your business.

Learn from other Industries!
As a fitness industry we can learn from others such as the airline and hotel industries, major retailers such as Staples, Barnes & Noble, Jiffy Lube, and FedEx. They use reward and loyalty programs because they have realized that they are the best platform for retaining their most profitable customers! No matter the industry, it is much more cost effective to retain those profitable customers, than it is to go out and find new ones.

What will it do for my business?
Health clubs that have implemented a successful point based incentive program report increases in retention, referrals, and in-club spending. Specifically, retention is something every club owner is aware of on a day-to-day basis. By rewarding individual members for long-term loyalty as well as daily usage, health clubs have seen an increase in retention by up to 5%.

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Customers love feeling appreciated and valued. Health clubs with point based incentive programs have reported an 8% increase in club spending with a successful program. Creating loyalty programs specific to the fitness industry allows clubs to recognize members’ patronage, which increases club revenue and builds customer loyalty.

For more information on how to create a profitable point based incentive program register for a demo: ABC/fitRewards Integration Demo

Or contact: Rachel O’Holla
1-888-762-8156 x 706