Does Your Small Business Offer A Loyalty Program?
If you think that loyalty or reward programs are only for “big box” stores and supermarket chains, think again. Brand awareness and marketing are crucial for every small business and giving your customers value and earning their loyalty is the best investment for your business.
Loyalty and reward programs provide many benefits for businesses of all sizes. Here are a few of them:
Loyalty Is Everything
Securing customer loyalty is the goal of every business. Loyal customers are returning customers which equals repeat business. A recent report indicated that over 61% of revenue for small businesses came from returning customers. Another recent survey showed that 82% of small businesses said that loyal customers are the key to growth. Loyalty is everything.
So, What Can You Offer?
There are a whole host of rewards and incentives that companies offer customers to gain their loyalty. From upgrades on airlines, free entrees at restaurants, and free rides (think Uber), to buy-one-get-one-free incentives, avoid-the-line incentives, pre-sale codes (think concerts tickets), and sales discounts on merchandise.
Some companies offer members-only nights or “VIP” nights where customers can get their hands on merchandise before it’s available to the general public.
The options are endless. What can you, as an entrepreneur and business owner, offer your customers to earn their loyalty and keep them coming back?
Gain Customer Insights
When a customer uses their loyalty or rewards card, you gain powerful insight into what items your customers buy, what products they’re interested in, and how frequently they purchase. You can then structure loyalty programs around this data. For example, if you know a customer purchases a particular product once a month, what can you offer them to increase the frequency of their purchase? You can then use these insights for purchasing inventory. As an entrepreneur and business owner, your customer data is gold for your business.
Marketing Techniques That Work
When a customer signs up to your loyalty or rewards program, you may also wish to ask them to complete a short questionnaire while signing up. Once you have the customer’s information and their survey answers, you have powerful information on your hands. With this information, you can tailor marketing efforts based on customer interests, behaviour, and location and run multiple campaigns simultaneously. In other words, you know exactly what your customers want.
There’s an App For That
A lot of small businesses may not have the tech know-how to set up a loyalty rewards program themselves. Luckily, there are plenty on apps on the market which can assist small businesses in setting up a loyalty program.
If the goal of your business is to give value and earn customer loyalty, there’s no easier way to reward your customers than through a loyalty or rewards program.
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