Rewards Programs for Handmade Candle and Soap Businesses Learn why rewarding your customers can lead to more sales and build loyalty—plus when’s the right time to add a rewards program and how to get started.

Rewarding your customers for their support is a powerful way to generate more revenue and build long-lasting loyalty for your handmade candle or soap brand. Whether you have an established business or are just starting out, having a rewards program can transform your customer relationships.

Attracting new customers is expensive and time-consuming—a 2014 Harvard Business Review report stated, “acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one.”

That’s why encouraging customers to shop with you repeatedly is so important for your business’s long-term success and financial health. 

Rewards programs fit into the picture because they:

• Provide customers with incentives like discounts and valuable benefits that motivate them to buy again (and hopefully again and again).
• Demonstrate your appreciation to customers for their support of your business.
• May lead to higher average order amounts.
• Encourage customers to try new products with their discounts.
• Can turn customers into brand advocates who refer friends and family to your business.

Whether you’re focused on customer loyalty, which is when customers love your products so much they aren’t interested in possible alternatives; or you want to improve stickiness, the measure of returning customers who repeatedly choose your products for the value or convenience they provide—having a rewards program is key to achieving one or both of these business goals. 

Typically used in retail businesses selling directly to consumers, rewards programs can also be employed for wholesale businesses as long as their costs are factored into your pricing model.

As with many aspects of a handmade business, there isn’t a one-size-fits-all choice when it comes to rewards programs. Depending on the size and focus of your business, along with customer preferences, there are different rewards program structures that appeal to different needs.

However, there are three main types of rewards programs so let’s take a look at each!

Customers earn points for each purchase that can be redeemed for discounts, free products, or other perks like free shipping. This system works particularly well for online businesses that automatically track customer activity.

• Example: Earn 1 point per $1 spent; accrue 100 points and receive a $5 discount.

In a tiered program, customers are rewarded based on their spending levels. Reaching a higher tier unlocks greater benefits, like discounts or free products. Similar to points-based programs, this model is often seen in ecommerce settings. 

• Example: Spend $250, get 15% off your next order of $50 or more.

Commonly used by brick-and-mortar stores and at in-person events, these cards are usually either punched or stamped for each purchase. Customers may earn credits when spending at certain intervals or with each purchase. Once the cards are filled, customers redeem them for their reward, whether a free product, discount, or other benefit.

• Examples:
  • Receive one punch per $10 spent (a customer spending $50+ would receive five punches).
  • Receive one punch per purchase.

The right time to launch a rewards program depends on the resources you have available. Starting and maintaining a program—amidst all the other parts of running your business—requires time, effort, and often a financial commitment. For solopreneurs, this can bethe biggest consideration to factor in.

There are a few schools of thought on the ideal timing:

• When your business has developed a robust customer base and you’re seeing regular repeat buyers. Starting a rewards program at this point allows you to leverage this existing pool of engaged customers.
• At the opening of your business to cultivate repeat sales from the beginning. Building a rewards program from the start can help attract and retain customers. 

Ultimately, the best approach is the one that aligns with your business goals and capabilities. If you have the bandwidth to set up and manage a rewards program, it’s often advantageous to do it sooner rather than later.

Ready to jump into a rewards program for your business? Here are the key steps to take:

• Decide on the program structure. An ideal program will suit both your business and customer needs.
• Determine point values, reward levels, enrollment process, and program terms and conditions. Will customers earn one point per $1 spent? What discounts or freebies will they qualify for at different tiers? Will customers automatically be enrolled or will they need to sign up
• Choose the method for running your program.
  • For Shopify stores, top-rated apps like like Growave Loyalty, Rewards and Referrals, Yotpo Loyalty & Rewards, and Rivo Loyalty Rewards Referrals, integrate right into your shop’s theme to offer rewards.
  • Smile.io is a versatile rewards program platform that can be used by onine retailers and brick-and-mortar merchants with their point-of-sale systems.
  • For those going the rewards card route, easily design and print custom cards with Avery WePrint. CandleScience customers receive a 10% discount on all orders through this link.
• Promote the program to your existing customers and new shoppers! Highlight the benefits and if the program doesn’t use automatic enrollment, make it easy to sign up.

When designing your rewards program, take some time to research the ones used by other retailers. Look at details like point values, tier thresholds, and available rewards. This pre-work can provide useful ideas as you work on your own program. 

Monitoring key statistics will reveal how effectively your rewards program is working. Important data points to track include:

• Enrollment rate: What percentage of your customers have joined the program? Success measures will be based on whether or not customers are automatically enrolled or must sign up to join.
• Redemption rate: How often are customers redeeming their rewards? High redemption is a clear indicator that your customers are engaged with the program.
• Order value: Do rewards program members spend more per purchase? Have they increased their overall spending since the rewards program began?
• Tier progression: If tiers are part of your rewards program, how many customers are moving up to higher tiers over time? How often are they moving up in tiers?

Use the insights you discover through these reviews to make adjustments to your program. This might involve tweaking the reward structure, improving communication and marketing, or even expanding the offerings. 

Whether you start with a simple points system or choose more sophisticated tiers and rewards, the key is to offer a rewards program that resonates with your target audience and fits your business. By providing value through the program, you can create a community of devoted customers who enthusiastically support your business.

With intentional strategy and execution, a rewards program can be an engine for long-term growth, increasing customer loyalty, generating repeat sales, and boosting the lifetime value of your customers.