6 Non-Discount Rewards for Small Businesses

Discounts are a staple of most reward programs. In fact, studies show that 60% of customers expect them in return for joining a loyalty program, making them a great primary incentive to reward the initial act of becoming a member.

But discounts are not always a sustainable or effective option, especially among small businesses that are still in the process of establishing their customer base. Offering too many discounts can start to affect your profit margin. Not to mention, discounts don’t necessarily guarantee repeat business. Once the discount has been used, there is no longer an additional incentive to encourage customers to return to your business in the future.

That’s why we have put together this list of 6 non-discount rewards that any small business can use to increase engagement with both new and existing customers.

1. Personalized Products or Services

These days, consumers have thousands of options at their disposal. One way to make your business stand out from the white-noise of generic offerings is to offer personalized products and services tailored to meet the individual preferences of your customers. Whether it’s monogrammed items, customized recommendations based on past purchases, or personalized services like one-on-one consultations, personalization adds value to the transaction and creates memorable experiences that keep your customers coming back for more.

2. Exclusive Experiences

Customers value exclusive experiences as well, especially ones that they cannot acquire anywhere else. Examples include behind-the-scenes tours, VIP events, or access to limited-edition products and services. These unique experiences strengthen your customers’ connection to your business by making them feel like brand insiders. Providing your rewards members with special access to all your most elite offers enables you to start building a loyal customer base that will actively promote and support your business.

3. Early Access to New Products or Features

You can also reward loyal customers by giving them first dibs on new products or features before they become available to the general public. This not only makes customers feel valued, but also generates anticipation and excitement around your new offerings. Plus, involving customers in the product development process strengthens your relationship with them and provides them more opportunities to engage with your business on a deeper level.

4. Skip-the-Line Privileges

Time is a precious commodity, not just for you, but for your customers too. Show your customers that you value their time by allowing them to skip the line or offering other priority services like expedited checkout, priority scheduling for appointments, or reserved parking and seating at events. These privileges demonstrate appreciation to your loyal customers while also creating a better customer experience overall that will encourage repeat business.

5. Add-Ons, Upgrades, and Merch

Instead of offering up another discount, consider providing your customers with complimentary add-ons, upgrades, or branded merchandise as rewards. Examples include anything from free samples and bonus products to upgrades to premium services. These options allow you to add extra value to the customer experience without having to reduce your prices, making it a win-win for you and your customers. Plus, branded swag is a great way to advertise your business and keep your name at the top of your customers’ minds.

6. Feedback Opportunities

If you want to build a community around your small business, consider giving your loyalty members the opportunity to provide feedback. Customers will be more likely to return to a business that actually values and acts upon their opinions. Your customer base may feel like they are involved in shaping the future of your business, making them more invested in your brand. Extra feedback helps you out too by identifying areas for improvement and enabling you to adapt based on the real-life preferences of your customers.

So remember, discounts aren’t the only way to keep your customers hungry for more. Think about how you can add value to your customers’ transactions without reducing your prices.

Start upgrading your loyalty program with non-discount rewards and connecting with other small businesses in your area by joining Ostana today!