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  • Zoon Loyalty

The structure of an ideal points system for customers

Then, how do you retain customers? How do you win loyalty?

To win customer loyalty, you may feel that the reward is your output. However if you begin your loyalty points system with this concept, you are probably beginning incorrectly.

And the first obvious idea that comes to mind is to find, study and replicate one of the successful reward points systems. However, this may not work either. Many companies would not have failed miserably in winning loyalty with these systems if it were that easy to design reward point systems for customers. We can tell you, step by step, how to create a successful reward points system, but that will not help you either.

Generally, humans are attracted to incentives that elevate status and the opportunity to elevate status. Assigning an elevated status to customers can motivate them to behave loyally. For example, when you are at the airport, do you sometimes observe the passengers in the priority line? Ah! Their expressions tell you how much they enjoy priority treatment.


If your product/service continues to attract customers to you, they will develop the habit of shopping for it, and creating habits is our final objective here. For example, PayTM

transformed scanning QR codes into a habit in India. PayTM pioneered mobile-based QR payments in India, democratizing the payment sector by allowing merchants to accept digital payments at zero cost. I personally love a lot of things about PayTM. What stands out the most is the intuitive user interface and the user experience. This past week, my 60-year-old mother-in law booked a flight using PayTM. She was super happy, and a reimbursement of 1000 INR (Indian rupees) made her even happier.


The factors that play a key role in beginning a solid relationship include:

benevolent motives,

occasional incentives,

being a company that is considered to have community qualities

The impact of the relationship is even stronger when consumers develop a relationship in which the program rules appear fair. For example, CaratLane (a North American company) has managed to create relationships with customers (locals) just like people used to have with their (trusted) family jewelers. Jewelry certificates, exclusive designs, occasional customer offers and benefits, well-thought out packaging, safe payments, etc. are some of the things that have contributed to the massive success of the giant.

The Mechanics of a Reward Points System for Customers

Customer reward programs should include:


The reward points systems for customers must be well-structured, easy to understand and based on membership. Well-structured programs make the best use out of human psychology to drive success. Systems that are easy to understand increase customer participation. Membership allows certain customer information to be collected. The stated information could help improve the relationship between you and them. For example, let’s take a look at Starbucks’ most recent reward points system.

fostering loyalty

Loyalty programs must encourage customer retention and the development of customer participation and foster loyalty.

Attitudinal loyalty

Attitudinal loyalty can be measured through:

*Word of mouth.

*Intention to repurchase.

*Price tolerance.

*Resistance to better alternatives.

*Intention to promote the product or service.

*Behavioral loyalty.

Behavioral loyalty can be measured through:

*Frequency of shopping or visits

*Time or amount spent at each visit.

*Probability of (re)purchasing.

*Shopping sequence.

*Retention rate.

*Switching behavior.

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