Reward is a word that signifies recognition or compensation for an effort made, usually in the form of a prize, award, or benefit. It is a motivator for people to go beyond their normal effort and to strive for excellence. Rewards are given in different forms such as cash bonuses or incentives from an employer, prizes from a contest, or discounts from customer rewards programs.
A customer rewards program is a loyalty program that organizations use to incentivize customers who frequently purchase their products or services. Customers earn loyalty points when they make purchases, and these points can be redeemed for discounts on future purchases. This strategy creates customer retention and encourages them to continue buying from the same organization.
Reward is essential because it drives motivation and engagement among individuals. Incentives help individuals work harder and smarter while providing them with a sense of accomplishment when they achieve their goals. Rewards help in fostering positivity among team members and promoting teamwork.
Reward impacts behavior through its influence on motivation. When a person receives recognition or compensation for their efforts, it increases their desire to continue with the same level of productivity or even higher standards. This phenomenon is called the "reward feedback loop," which encourages individuals to stay active in pursuit of success.
There are two types of rewards: intrinsic and extrinsic rewards. Intrinsic reward refers to when an individual finds joy in doing something without any external influence. Extrinsic reward applies to external incentives such as money or recognition.
Organizations can use rewards effectively by setting clear goals and providing achievable targets for employees or customers. It's essential for organizations to have proper communication channels where progress towards the goal can be tracked efficiently, incentivizing hard work and continuous growth.
Rewards should be given when an individual or team has achieved a set goal or milestone. It's important to celebrate small wins along the way, which can provide an extra boost of motivation and encouragement.
