Money In Reward And Recognition Systems

When consumers are shopping, they are often motivated to buy products by the reward systems that the retailer establishes. These reward systems typically have three components: The offer of free product or coupons, a gift certificate and points. So let’s take a look at how these systems work!

Rewards programs are typically used to incentivise customers in order to increase purchases of specific goods, by offering discounts on those goods. Reward points can also be used as an educational tool for employees as they track their progress over time and help them learn more about who they are and what they do best.

Marketing sometimes refers to this idea as "gamification," which is described as using game elements in a non-game context.

The core concept of a reward system is that the more a target customer buys, the more they get. While this seems counter intuitive, it is not uncommon. A great example of this is special offer pricing. For example, a golf course might start off with $10 per green fee every day and then add a new green fee every week thereafter on the weekends and holidays until they are offering $20 per green. The target customer sees this as free money to justify their green fees and therefore become repeat customers.

Gift cards are a common reward system. Companies give gift cards to employees, customers and even independent contractors. The advantage of a gift card is that it requires no commitment from the receiver. It can be used for anything at all with no questions asked, unlike a coupon or cash rebate that is restricted to specific products or services.

A more tangible form of recognition is the reward certificate. A reward certificate typically involves one time usage for services or products and another type of recognition that can be redeemed in the future. These certificates can also be designed to encourage multiple visits such as 5 visits for 1 free visit, etc. Customers can see these certificates as a special awareness that they are valued in the market.

Points systems are perhaps the most underrated form of reward. Rewards points are typically given or collected on a per transaction basis and then redeemed for products or services at some point in the future. Points systems offer both immediate gratification as well as future returns on investment. This is different than a gift certificate since points can be gained regularly and redeemed immediately for products or services, however no specific product or service is guaranteed until redemption time. One example of this is a situation where 3 visits to a gym for free after 6 visits, which might be less convenient to redeem than a single product from a gift certificate but still offers instant gratification before the final product redemption occurs.

Points systems can also be used to reward employees for completing certain steps, such as those required for certain promotions and even those who complete their first month of employment. This is different than a cash award because it requires more effort on behalf of the employee to receive the reward. However, this type of system does not necessarily promote employee loyalty by itself, but it does encourage employees to work harder for the benefit of their company as well.

NOTE ON DIFFERENCE BETWEEN RECOGNITION AND REWARD

A simple way to think about rewards is to think about points. When you hear about the concept of a reward program, you know that the reward is worth something. In a reward system, there is often an incentive to purchase product or services because it's free, or free plus something else is usually more valuable than just the free thing alone. Data mining shows that people are more likely to choose products and services that they can afford if they have earned them by spending time and money on them. No one likes feels like they are being taken advantage of - so the idea is to make the consumer feel like they have earned their rewards.

With the introduction of a rewards program, it is important to distinguish between recognition - meaning that you are being recognized for something you do - and reward, which is in the form of something you can use. A way to think about this distinction is illustrated below:

When we look at the diagram above, it highlights that recognition does not require any payment. The system recognises a person for who they are (and this should be valued) or for their achievements or accomplishments (which could be any type of behavior). The reward system however requires payment upfront and at regular intervals.

What could be better than winning a prize for doing nothing? A study recently showed that playing action video games can significantly increase the ability to learn new skills, such as writing or drawing (that weren't used in their training), and even general knowledge.

In the study, college students who played action video games with fast-paced visuals and non-violent scenes of war or fighting were much better at producing stories than their non-gaming counterparts. The subjects then wrote narratives about situations they witnessed in videos. As a result of their gaming "practice," the gamers wrote much more narratively complex accounts than the non-gamers.

When people play video games, they can really get into it and their mind is focused on what's happening. If you are playing a real intense game and then you're asked to do some task outside the game, your mind is still focused on what's happening in the game. The study showed that gamers performed better even after they stopped playing.

Gamers also have more efficient neural networks in areas of the brain linked to skill learning and memory formation because they have repeatedly practiced a sequence of actions while they played. In layman's terms, playing video games makes the brain more efficient.

I am in complete agreement with this study's findings. If you watch football players, for example, some of them are clearly engaged in the game but when they're on a break or something like that, they seem to be in a trance or something. You can see it – their eyes aren't focused on anything else. I believe this is because their minds are still focused on what was happening during the game. They have a lot of experience in visualizing different actions and how they work.

Conclusion

In conclusion, we have reviewed five different types of rewards that you can use to encourage repeat business and increase the benefits of your business. These rewards can be used to reinforce service and product training, enhance customer loyalty and good will, increase profitability or simply to show appreciation for a job well done. You should do your homework to determine which reward system is best suited for you.

In order to properly implement a strong recognition program in your company, you must first choose a goal or a direction that you want to go. If there is no direction then how will you know if it is working or not? Once you have identified the goal, then writing down what the goals are for your program will be easier.