Debunked! 4 Common Myths About Reward Programs in Australia

Do you know 90% of all the companies have some sort of reward program? It means there are still businesses that believe loyalty programs aren’t useful. However, the reality is different. As per research, more than 60% of Millennial and Gen Z do not commit to a brand that doesn’t have a reward scheme.
 
There are countless studies from the past that suggest reward programs in Australia are a great way to retain customers and get new ones. Also, business-centric loyalty programs help strengthen relationships with partners, investors, and potential clients. 
 
Still, many businesses are afraid of the cost, launch, and the outcome of a loyalty program. They tend to believe that reward schemes are expensive and do not provide satisfactory results. However, the reality is that these programs play an integral role in growing a business.
 
If your business is also hesitating to try reward programs in Australia, it may be due to a number of myths associated with these schemes. Here are some common myths that you should totally ignore:

  • Reward Programs are Expensive

It is a widely popular myth that many businesses around the world think is true. They have a hunch that loyalty programs cost a lot and only big brands should use them.
 
Truth: Reward programs are cost-effective ways to win people and encourage them to stay loyal to a business. As per research, retaining existing customers is 5% to 25% cheaper than getting new ones.
 
You can work with professionals to create a loyalty scheme that fits your budget and holds potential to deliver results. 

  • Reward Programs Mean Giving Free Things 

As it is a reward program, it is considered as a gift many times. Businesses that do not have these programs believe giving free things as rewards can take a toll on the company’s budget and lead to a huge loss.
 
Truth: First things first, you do not give rewards for nothing. It is a win-win situation. When you provide your customers with a reward, you get loyal clients who believe in your brand and invest in your services. 
 
Apart from that, there can be different types of rewards, which may be more useful than others. For example, you can give rewards to your customers when they refer a friend or make 3-4 purchases.

  • Reward Programs aren’t for Everyone

It is widely believed that loyalty schemes are for brands from certain industries and not all businesses should use reward programs in Australia. For example, lots of people think only airlines or grocery businesses should provide their customers with rewards, and digital companies should stay away from them for good.
 
Truth: In reality, reward schemes are beneficial for businesses of all kinds. All types of companies can start their reward programs to grow their businesses.

  • Reward Programs will Vanish

Several people have a belief that loyalty schemes are just a fad, and they will no longer be useful in the future. 
 
Truth:  Reward programs have been here for decades, and they are going to be helpful for businesses in future too. In fact, over years, reward programs have become more useful for different types of businesses.
 
In the End
 
It is safe to say that loyalty schemes are highly useful tools that can help a business grow. There are many kinds of myths associated with them, but you should not believe them. In addition, to make the most out of them, you should work with professionals to create custom reward programs in Australia for your business. Such schemes have high chances of success.

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