Why Your Rewards Campaigns Might be Missing the Mark

Why do some rewards schemes and promotional campaigns fall flat while others deliver a significant sales boost? The difference often comes down to strategy

Businesses often use rewards and gamification campaigns to boost sales, encourage customer engagement, or build brand loyalty. While these strategies can be effective, they don’t always work as well as you might expect. Why? Because sometimes the rewards don’t resonate with the audience, or the structure of the campaign fails to maintain interest. Here’s why some reward schemes fall short and how you can make them more effective.

Problem: The Wrong Reward

Imagine you’re running a promotion where every purchase over a certain amount comes with a free tin of chocolates. Sounds great, right? Not necessarily. What if your customers are on a health kick? What if the office is entirely vegan? The reward you thought would delight actually alienates or disappoints your audience.

Solution: Flexible, Customer-Centric Rewards

One way to avoid this pitfall is to give customers the power to choose their reward. Instead of offering a single prize, implement a points or voucher-based system. Points can be accumulated and redeemed for a variety of rewards, allowing customers to select what suits their preferences. Another approach is to survey your customers beforehand. By understanding their preferences, you can tailor rewards that align with their interests. Seasonal or themed options also add variety and keep things fresh, making your reward scheme more appealing.

Problem: Rewards That Feel Unattainable

Customers are often deterred by reward schemes that seem impossible to reach. If the top prize requires an unrealistic number of purchases or points, participants may lose motivation.

Solution: Tiered and Incremental Rewards

A more engaging model is to implement tiered rewards that gradually increase in value. For instance, the first tier might offer a small discount or a free sample, while higher tiers provide more substantial incentives like gift cards or exclusive products. This structure encourages continued participation because customers feel rewarded at every step rather than waiting for an elusive grand prize.

You can also introduce incremental decreases in rewards based on response time. Those who act quickly get the most significant benefit, while latecomers receive a smaller but still appealing prize. This urgency can motivate faster action without entirely leaving slower responders out of the loop.

Problem: Lack of Continuity

A single giveaway or limited-time promotion can create a short burst of excitement, but once it’s over, engagement drops off. Customers may feel like the opportunity was too fleeting or not worth the effort.

Solution: Combine Short-Term Promotions with Long-Term Loyalty

Rather than relying solely on one-off promotions, integrate these with a consistent loyalty scheme. Loyalty cards or apps that reward repeat business can run alongside limited time offers. For example, customers who regularly engage can earn extra entries or bonuses during promotional periods.

Another idea is to add a random bonus generator to your loyalty program. Each month, one or more customers could receive an unexpected points boost or a special prize. This element of surprise maintains interest and keeps the scheme feeling fresh.

Problem: Lack of Personalisation

Rewards schemes that feel generic or overly transactional fail to build a personal connection. Customers want to feel valued and appreciated, not just like they’re being pushed through a marketing funnel.

Solution: Personalise the Experience

Use data to customise rewards based on purchasing habits or demographic insights. If a customer frequently buys eco-friendly products, for example, offer discounts on similar items or eco-themed rewards. Regularly update customers on their progress, new rewards, or upcoming opportunities through emails, SMS, or push notifications. Celebrate milestones and remind them of how close they are to the next reward tier. Providing helpful tips on how to earn more points or showcasing success stories from other customers can also boost motivation.

By offering choices, structuring incentives thoughtfully and maintaining clear, ongoing communication, you make customers feel valued and involved. This not only boosts participation but also fosters loyalty, turning your rewards scheme from a fleeting promotion into a long-term relationship-building tool.