Cate Barnes

Marketing Executive

It can be an effective method of motivating sales but discounting doesn't build a tribe of loyal repeat customers - Customer Rewards does.

Discounting is a tried and trusted way to boost sales as a strategic promotion and at season end, but too much discounting has multiple disadvantages for independent retailers. Aside from giving away margin and reducing profit, discounting undermines the retail value of branded goods, teaching the customer not to pay full price.

It also leaves the customer with more money in their pocket to spend anywhere and doesn't create a strong reason for them to come back to buy from you next time. Customer Rewards is a viable alternative that helps to motivate sales, inspires loyalty and reduces discounting.

Customer Rewards works both online and in-store, enabling customers to earn points each time they buy from you. They can use these points to get money off a future purchase. It's a meaningful incentive for your customers to come back and buy from you again that's sustainable, effective and popular.

You have total control of how customers earn points on their purchases and how much margin you're willing to sacrifice to draw a customer back to your business. By earning points instead of offering a set percent discount, Retailers can give away much less margin with Customer Rewards, whilst their customers still feel happy that they are getting something good out of it.

"It's been brilliant! Now everyone's getting 5% of what they spend in points on their account. That money equates to 2.5-3% [of margin] to us and it's all back in our door rather than over the road or somewhere else."

Dan Stringer, Owner - Ride Bikes.

Because customers use points they have earned rather than getting a straight discount, Retailers can protect the retail value of branded goods. Customer Rewards helps to create customers who appreciate the value of items from specialist brands; who are more willing to pay full price than those who have learned to expect a discount.

Customer Rewards reduces on the spot discounting so you have a better control of margins. Retailers receive less requests for discount because customers know they can earn and use Reward Points to save money.

Customers can only use their rewards and get the benefit if they come back to buy from you. Customer Rewards motivates customers to come back and buy from you again, whereas discounting leaves money in their pocket to spend anywhere.

Customer Rewards leads customers to make their high value purchases with you instead of elsewhere. Rewards Points are often used for high value purchases, where customers save up their points to create the feeling of getting a good deal.

Over time we can see that customers using rewards points spend more each visit, compared to purchases without Customer Rewards. The promise of future savings encourages more spending, giving sales a boost, reducing discounting and creating loyal repeat customers.

Discover more about Citrus-Lime with Customer Rewards.

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