Do’s and Don’ts for Holiday Rewards Programs

The holiday season is the perfect time to engage your customers and show your appreciation through thoughtful rewards programs. However, not all rewards strategies are created equal! To ensure your program spreads joy and builds long-term loyalty, follow these do’s and don’ts.

Do: Reward Non-Purchase Actions ✔️

Customer loyalty isn’t just about spending. Reward non-purchase actions like sharing holiday content, writing reviews, or referring friends. These actions amplify your brand’s reach and strengthen customer engagement. In fact, 92% of consumers trust recommendations from friends and family over other types of advertising, making referral rewards a powerful tool. Additionally, 72% of customers who write reviews are more likely to purchase again from the same brand. For businesses utilizing branded prepaid cards or virtual prepaid cards, offering a small, instant prepaid card for reward and sales incentives can encourage these behaviors while introducing recipients to innovative card solutions.

Don’t: Ignore Your Best Customers ❌

Your most loyal customers deserve special recognition. Treat them to exclusive perks, personalized gifts, or unique experiences to make them feel valued. Did you know that 65% of a company’s business comes from existing customers, and loyal customers are 50% more likely to try new products and spend 31% more compared to new customers? A prepaid business card or reloadable virtual card can make an excellent holiday surprise, offering convenience and flexibility that aligns with their preferences. Remember, the best customers should never feel like just another number.

Do: Personalize Your Rewards ✔️

Tailor your rewards to individual preferences using purchase history or engagement data. For example, if a customer frequently shops for specific products, surprise them with a relevant reward. Personalization is key—80% of consumers are more likely to purchase from brands offering personalized experiences, and personalized rewards can increase customer satisfaction by 20%. Whether it’s through a prepaid virtual card, an instant online prepaid card, or early access to holiday sales, personalization goes a long way in creating a memorable experience.

Don’t: Assume Points Are Enough ❌

Points alone can feel impersonal. Instead, offer experiential rewards that foster deeper connections. Exclusive events, early access to limited-edition items, or behind-the-scenes experiences can set your rewards program apart. Consider this: 77% of consumers prefer experiences over physical gifts, and experiential rewards programs have a 15% higher engagement rate compared to traditional points-based systems. Business prepaid Visa cards are also a flexible tool to offer these experiences while simplifying the reward process.

Do: Leverage Gamification ✔️

Bring a little holiday playfulness to your rewards program. Create challenges that allow customers to unlock rewards—like completing festive tasks or collecting points in creative ways. Gamification is highly effective, as it can boost customer engagement by up to 47%. Additionally, customers who participate in gamified programs are 22% more likely to share their experience with friends and family. Quick prepaid cards or virtual prepaid cards can be used as exciting prizes for customers who achieve milestones, adding an instant and tangible benefit to their efforts.

Don’t: Let Holiday Rewards Expire Too Soon ❌

Avoid dampening the festive spirit by setting overly restrictive expiration dates on rewards. Instead, extend the redemption period into the New Year to allow customers ample time to enjoy their perks. This strategy aligns with consumer expectations—58% of consumers feel frustrated when rewards expire too quickly. Extending reward redemption periods can increase customer retention by 12%. Instant prepaid cards or reloadable virtual cards are especially effective in ensuring customers have flexibility and control over their rewards.

Boost Your Holiday Rewards with Prepaid Solutions

The right rewards program not only fosters customer loyalty but also strengthens your brand image. Innovative prepaid card solutions—such as a business prepaid Visa card or the best virtual prepaid card options—allow you to create seamless, delightful rewards experiences. Prepaid card companies and prepaid card businesses offer scalable options for businesses looking to stand out in providing sales incentive this holiday season.

With the right strategy and tools, your holiday rewards program can become a highlight of the season for your customers. Embrace these do’s and don’ts, and watch your brand’s festive cheer translate into long-term loyalty!