The Direct Sales Customer Rewards Program

Amanda Austin is a Jamberry nail wrap consultant, and she’s managed to grow her personal business through the use of a direct sales customer rewards program. She’s here to explain how and why she did it, and how it has helped her grow her business.

Building customer loyalty through a rewards program

I’ve been tempted over the years with quite a few direct sales opportunities, but I finally made the plunge in July by becoming a Jamberry Nails Independent Consultant. My decision was part of a bigger dream of mine to open a fashion or beauty boutique; considering I work full time and am a mom and haven’t won the lotto yet, this was the perfect opportunity for me.

Coming into this new venture, I had two main concerns: first, I didn’t have time (or a wide variety of contacts) to do many in-home parties and second, I didn’t want my business to be a “one-and-done” kind of thing – I envisioned my customers coming back to me again and again to help sustain my business. I wanted to be a true consultant, not just a party planner.

I struggled for a few months trying to find a business model that worked for me, but after some research and consideration of how my customers were purchasing products, I decided to develop my own customer loyalty program. Many of my customers were purchasing one or two wraps at a time during parties or flash sales, which meant they weren’t able to take advantage of the company’s Buy 3 Get 1 free discount, but in return, they got the benefit of a small discount or free shipping from me. I based my customer rewards program around the Buy 3 Get 1 free discount, providing three levels of rewards after each four purchased. Anyone who buys from me is enrolled and added to my Insiders exclusive customer group. If she buys four from a party, she’s already met the first level and her next purchase will include a discount. The program cumulates in a free sheet of wraps after she buys 13 wraps. I launched my customer rewards in January and have had amazing results in the past two months.

Customer rewards aren’t for every business, but the concept circles back to taking care of your customers – which is especially important when you’re in the direct sales business. There are lots of reasons to create your own customer rewards; here is my list!

Thanks your customers: Let’s face it – your customers have a choice for where he or she will do business. Customer rewards are a great way to thank your customers for their purchase, especially when the purchase was made through a direct sales party to help a hostess gain more rewards. I use my rewards as a way to show the customers I appreciate that they spent their hard-earned money to help the hostess and to support my business.

Creates a buzz: Customer rewards can help boost a sagging business and help get leads in your funnel for future parties, events or sales. I launched my rewards program as part of a Mystery Hostess party and introduced it during a live Facebook party. My Insiders were able to take advantage of their rewards right away and be entered to win the hostess rewards. The program created excitement for my customers and past hostesses, and lead to one of my biggest parties ever.

Encourages frequent purchases: It has always been important to me that my customers are buying the product because they love it and not because they feel obligated to buy it.  Although buying more gives you a great deal, not everyone has that kind of cash in their fun budget, so I want to reward the customers for any purchase, whether it’s one sheet during a party or seven sheets on a whim. This way, she feels like she can still get a great price from me without having to break the bank.

Increases customer loyalty: Again, your customers have a choice, and can easily hop to another independent consultant! The majority of the time, your customers appreciate that you’re giving them additional discounts for sticking with you, and will reward you back with their loyalty.

Gives opportunity for an incentive: With a customer rewards program, you can provide added incentives without lowering your prices or undercutting your bottom line. Occasionally, I will offer double rewards for a purchase. This gives them an incentive to buy, and I will still make the same profit from the sale.

Keeps you in touch with your customers: A customer rewards program gives you a reason to keep in contact with past customers, or customers who may normally be a one-time sale. This can be especially helpful if you’re hosting your own party or fundraiser, or offering a sale.

The best part about having a customer rewards program is the appreciation you get from your customers. In fact, after redeeming some of her rewards, one of my customers told me she loves that I look out for my customers and help them get the best deals. Plant those seeds, and your business will grow!  

Do you utilize a rewards program for your customers?

Find Amanda at her website, on Facebook, and on Twitter.

Comments

  1. Great tips :) – I really enjoy it – Thanks :)

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