How Loyalty Programs Can Increase Customer Retention
One of the best things in life is getting a present. There is just something special about getting a gift that can make a day seem brighter and help people feel better in general. These gifts aren’t just about a gift exchange between two people, but can also be between a business and their customers. These gifts can be a wide variety of things that promotes their loyalty while enticing them to keep coming back for more. Loyalty programs can help a customer feel valued and is an easy way for your business to show your appreciation for their frequent shopping efforts.
Edge Out the Competition
There are a lot of competitors for the same customers, so finding ways to edge out the competition can help you to bring the customers to your place of business versus another business. Incentives are an excellent way to give a little to get a little. These little rewards or gifts can help convince customers that they should be shopping with you. One surveycompleted by the Center for Retail Management at Northwestern University in 2015 found that a small amount of loyal customers can account for a large amount of business, and that over half of the respondents would be more loyal to a company that offers a loyalty program.
Finding Ways to Stand Out
A loyalty program is a great way to stand out from the crowd, but you want to make sure that your loyalty program isn’t outdated. A stamp card that earns a stamp with each purchase or a one-time discount is probably not going to be as exciting as some of the new loyalty programs that exist. You want to create a program that’s interesting and rewarding.
5 Steps to Find the Perfect Loyalty Program
1 Sharing is Caring
The nursery school adage that we all learned growing up is one that you need to keep as a business owner. You want to create a reward program that helps to clue in your loyal customer how important they are to your business. This means you need to be some thought into the details of your loyalty program. There are tools available that you can use to create a more personalized program for your customers or you can create a more general program.
2 Go the Extra Mile
Many loyalty rewards programs are based on spending habits, but go the extra mile. Treat your loyal customers with special gifts during special occasions. You can celebrate their birthday and other special dates, such as Mother’s Day. You can also create anniversary rewards, such as their anniversary with signing up for the program, or other milestones in their life. In one study, it was found that about 67 percent of the customers surveyed enjoy surprise gifts that are offered just because.
3 Think Outside the Box
You can keep your loyalty program more memorable by thinking outside of the box on how to reward your customers. Don’t just go with boring gifts, but think of some great gifts you can give. You may even want to consider creating a tier system to your rewards where your extra special customers that are loyal to a fault get something really exciting as a gift. Offer a special upgrade or another service that will keep your customers coming back for more.
4 Come Back for More
Your loyalty program and the gifts that you give should serve to make them feel good about using your business, but it should also entice them to come back again and again. You want the rewards that you offer to create foot traffic back to your business because the programs you’ve created is so amazing they want to keep taking part in it. Loyalty points, tiers, and other programs are great for getting people to come back after being away.
5 Keep Your ROI in Mind
An amazing loyalty program is enough to get customers to come in and try out your business, but not all customers are created equal when it comes to how they spend money with your business. A loyalty program with tiers is one way to offer incentives that are more closely based on how much money they are spending. A gift that doesn’t turn a good return on investment or ROI isn’t helping, so find ways to still reward all levels of customers while keeping those that shop more often a little more of a treat. This can even feed into having them come back for more in case they want the benefits of being another level up in your rewards program.
Your business requires happy customers to keep coming back in and to spread the word to their friends for you to keep your doors open. Creating a healthy and rewarding relationship between your company and consumers is possible by using a loyalty program.