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Sunday, October 5, 2014

Danger of Rewards Programs

Many businesses participate in various “Rewards Programs”. Some promise a rebate or “gift” if and when certain items are purchased or level of purchases is reached. Some of these programs are often set up not to provide the advertised rewards, and this can hurt your business. Here are some examples:

A company sells a product that has a “Reward” card, requiring the purchaser to send in the card with a copy of the purchase receipt and the original bar code from the product packaging, with the promise of a “Reward” within four weeks. The notice often says that processing will not occur if there are any errors or mistakes in the submission. There is no other communication. If and when the purchaser inquires after the four weeks, they are told either that the submission was incomplete or processing is continuing. Unless the purchaser stays on the issue for an extended period of time, adding to frustration, the so called “Reward” never happens.

A company has a point program accumulating points for credit “Rewards” and somehow the points of some number of purchases do not get credited.

Some third party rewards organizations exist and survive on the revenue they produce by not providing the rewards as promised. They make arrangements to purchase such programs at a discount from the business on the promise of not fulfilling the promise.

If you want a happy customer, my advice is to stay away from these programs and the products that use them. If you must use them, verify the quality and stay on top of it.

How many customers are angry with you because of situations like this?


Steve Koenig, SCORE Counselor


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