Why bonus systems are so effective

Have you ever wondered why bonus systems á la payback have become so successful? The answer is simple: They satisfy the human instinct to be hunters and gatherers. Think for yourself how you would act if you were credited with part of the costs in the form of bonus points as part of a bonus card system for every purchase at the local supermarket, butcher, bakery, flower shop or for visiting the municipal swimming pool.

How motivated would you be to buy products and services locally? Your motivation would most likely be higher than without such a system. In any case, as long as the equivalent value of the credit note is reasonable. For successful city marketing, a sophisticated bonus system, as can be implemented with Awiti 5, is enormously helpful.

However, this is not yet the end of the line. This is because the bonus points earned can in turn be used for local shopping at participating municipal retailers and service providers. The synergy effects achieved in this way further increase the potential for city marketing.

Collaboration between employers, companies and consumers

Every major city functions almost like a semi-autonomous cosmos of crafts, industry, trade and service industries. Anyone who wants to implement concepts such as reusable card systems in the long term or introduce them in their city must bring as many parties as possible together. It is not only the participating catering establishments, service providers and retailers as well as customers that are important here. The city's major employers should also be involved in the project.

With Awiti 5, for example, it is possible for employers to provide their employees with a tax-free benefit in kind. Up to 44 euros are tax-free per month. If this bonus is paid out as part of a “city voucher system”, this means an additional economic strengthening of the location through synergy effects. The basic rule applies: The more companies participate, the sooner the “purchasing power cycle” works.

Simplicity is key

For a local voucher or bonus point system to be successfully established in the long term, it must be as easy as possible for all parties involved to use. There is little point in launching a complex paper-based voucher and coupon system. Not only is this no longer up to date.

In addition, the administrative burden is unnecessarily complicated, especially for participating business people. The bottom line is that the additional expenses do not result in a plus in the cash register despite sales growth. A confusing paperwork is also not attractive for consumers. The barriers to implementation must be as low as possible for all parties involved. In the case of Awiti 5, that is exactly the case.

An example of this is the user-friendly dashboard, which employers can use to pay out a bonus balance to their employees. The same applies to independent charging by consumers via a web interface. Participating retailers and service providers, on the other hand, do not need much more than an internet-enabled device (e.g. smartphone) to book the vouchers. The software modules provided by awiti take care of the rest.

Using social media to polish up the city's image

Today, nothing works without social media. Even the best local voucher and bonus system is of little use if presented inadequately. An accompanying social media campaign is therefore a must in city marketing. On the one hand, the presence of posts, campaign days and competitions on Facebook, Instagram and the like increases the system's attention and increases the number of users through the communicated attractiveness.

Thanks to the classic network effect, the value of the “network” within the urban cosmos increases with every additional user - and for all sides. At the same time, a consistently developed and communicated voucher system is an enormous image gain for every city.

‍