Are you a small business owner that is looking for fresh and innovative ways to gain new customers? If so, implementing a loyalty program may be an affordable and easy way to do so. Loyalty programs have been around for years and help businesses build loyal customers over time by enhancing the customer experience. With more and more businesses adding loyalty programs, it’s imperative for small businesses to do the same.
Here are some of the main reasons why small businesses should use loyalty programs:
Gain Loyal Customers
Incorporating a loyalty program for your small business is one of best ways to gain repeated customers and increase business. By rewarding customers for the purchases they buy, customers will be more inclined to not only buy more items, but also return to your store in the future.
One example of a loyalty program is a point-per-dollar spent incentive. Point-per-cent loyalty programs incentivize customers to visit more frequently as well as spend more money.
“We’ve seen merchants are most successful when they offer point-per-dollar spent, not just point-per-visit,” Polner said. “If customers earn a point for every dollar spent, then their customers are actually incentivized to spend more and visits more often, not just visit more. And isn’t getting a customer to spend more money what a loyalty program is really all about?”
Builds Your Brand
Forming a brand that represents your small business is crucial, especially for retail stores, as customers tend to shop at stores that represent their own sense of style. For small businesses, building your brand/identity is a great idea to attract a certain demographic and revolve your loyalty program around this. Whether your ideal market is a certain age range, gender, or general interest, make sure your loyalty program is integrated with your brand.
Since most loyalty programs are now added within a POS system, small businesses can evaluate and track the success of their loyalty program and figure out if it’s bringing in additional revenue. One way to do this is by measuring a specific campaign and monitor how many purchases or visits your business obtained. Loyalty programs also have the capability of tracking referral amounts, how much customers are spending or the points they have accumulated.
“Consumer data must be analyzed to create highly targeted product recommendation offers. Analyze consumer data such as demographics, lifestyle, products purchased by category and type, frequency of purchase, and purchase value,” said Larissa Bedgood, director of marketing at DataMentors.
Enhances the Customer Experience
Another effective tactic loyalty programs provide is that they personalize the customer experience. Loyalty programs that engage customers will keep them interested and coming back to shop in the long haul. Such examples include social media campaigns, BOGO deals, refer a friend, or point-based systems that urge customers to buy more.
Loyalty programs are a great option for small businesses that are looking to attract new customers and offer special deals. By gaining loyal customers, building a brand, obtaining analytics, and enhancing the customer experience, loyalty programs will help small businesses succeed for years to come and differentiate themselves in a competitive marketspace.
At SignaPay, we offer loyalty programs to merchants of all sizes that are quick and easy to launch and have low monthly service fees with transactions fees included. Grow your business with improved customer loyalty and repeated visits today.