Music Rewards Program – The Savings of Customer Loyalty
For marketers of consumer products and services like ipod repair companies, well-designed customer loyalty programs are like money in the bank. Music rewards programs are very popular, especially with young and trendy consumers. The basic idea behind a music rewards program is to award points to customers based on purchase volume. Providers of music rewards programs contract with providers of consumer services or merchandise to offer consumers rewards in return for points earned. For instance, a consumer can be awarded, say, 500 points when he/she spends $100 at a participating merchant. The points can be redeemed for specific music-related premiums or services that are underwritten by the participating merchants. By controlling the ratio of sales to points awarded, merchants have flexibility to specify exactly how much money they are willing to allocate to music rewards programs.
Merchants can choose from several different kinds of music rewards programs:
- Music downloads: Consumers who purchase products or services can redeem music reward points online from an online rewards provider. The provider maintains a catalog of songs that can be redeemed for a specific number of points. The songs can be distributed via email or download to a website. Since the downloads are electronic, no costly physical distribution is required. Alternatively, a branded debit card can be issued to be used for purchases at participating music stores. In addition, marketers can employ album cards that use the newest technology to transfer music material from special plastic cards directly to music libraries residing on personal devices or computers.
- Services for music-playing devices: Participating merchants may offer points that can be redeemed by consumers at Internet music-device repair service companies such as Rhousemedia. For a sufficient number of points, consumers can receive services such as macbook repair from Rhousemedia for a substantial discount or even for free.
- Music-related premiums: These programs are designed for higher-spending individuals who require substantial incentives to sway their patronage. For instance, a motorcycle manufacturer can offer a free pear pod or similar device when a customer purchases a new bike. A car dealership might offer a free upgraded car stereo system with the purchase of more expensive models. Purchasers of business jets may receive free in-flight string quartet recitals. In all cases, the level of reward is scaled to the purchase amount.
Music reward programs make sense for merchants, advertisers and consumers. Why not consider one for your own business?