Explore the impact of different reward systems on client retention. Emphasize the importance of personal and impromptu rewards. Use examples from Disney and a hotel to illustrate the significance of creating positive experiences and celebrating small accomplishments. Learn how to maximize creativity and productivity through effective energy allocation. Prioritize regular clients and their needs to increase retention.
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Quick takeaways
Surprising rewards outside of the ordinary are more effective than structured rewards, creating memorable experiences and positive word-of-mouth.
Creating peaks, or high points, in the customer experience is crucial to offset any low points and significantly impact the overall perception of the gym.
Deep dives
Importance of Surprisingly Personable Rewards
Surprising rewards, which are outside of the ordinary, are found to be more effective than structured rewards. For example, buying a lost iPod shuffle for a client and presenting it to them as a surprise. These surprising rewards create memorable experiences that clients share and champion, making them sticky and generating positive word-of-mouth.
Structuring Rewards for Client Retention
While surprising rewards are the most impactful, structured rewards still have value. Implementing a system with structured rewards, such as a point-based loyalty program, can drive desired client behaviors, like referrals and positive reviews. It's important to gamify these behaviors and offer rewards that align with the goals of the clients and the gym.
Importance of Peaks in the Customer Journey
Creating peaks, or high points, in the customer experience is crucial. These peaks can offset any low points and significantly impact the overall perception of the gym. Peaks can be created through surprisingly personable actions, such as celebrating small accomplishments or personalized gifts. It's important to operationalize these peaks and make them a consistent part of the gym's culture.
In this episode, we are going to explore different types of reward systems and how they positively affect client retention. Rewards, both the structured ones and the ones that are personal and impromptu, go a long way in increasing customer engagement and driving the type of client behavior that you want to see.
In concurrence with a set of principles laid out in a book we’ve read, we’ll be emphasizing that it’s important to increase the number of high points in the customer experience. That can serve to offset the things that are just “good enough” and thus help create an overall high customer satisfaction scenario. And yes, the personal touch - exhorting the individual customer towards higher things and celebrating even the small accomplishments, is as important as having a structured rewards system in place.
We are going to talk about this, and more, so stay tuned.
Key Points of Discussion:
Surprisingly personable rewards tell the customer you’re paying attention (0:59)
Clients’ gifts, and structured reward programs such as referral incentives (4:01)
Taking a leaf out of Disney’s book: Optimizing the peaks, the high points (7:34)
Look for little wins for your customers daily, and systemize that (10:51)
Little things can create the peaks, as a California hotel case study shows (11:27)
Creating high peaks for regulars instead of chasing lowest end customers (17:57)