While loyalty programs are common to huge businesses including Best Buys and Starbucks, small business can also gain from the wide range of benefits a loyalty program can give. Most of the small businesses focus on making their business grow and improving their services to their clients. To further boost their business, small businesses may start with a small rewards program for their customers. Here are five reasons why starting a loyalty rewards programs give small business the edge:
Keeping existing customers is a lot easier that finding new ones.
This is supported by several studies pointing out that profits can increase from 25 to as much as 95 percent when retention rates are increased by five to ten percent. It is a lot easier and less expensive to retain existing customers than going out and finding potential customers. With a loyalty program, customers will have something to look forward to every time they go to your store thus increasing retention.
Loyal customers spend more than new ones.
Studies suggest that repeat customers have the tendency to spend more than new clients. Loyal customer may spend an average of 65 percent more that clients who just pass by up-to-the-minute. While it is encouraged bringing new customers to your business as much as you can, customer loyalty and retention should also be something to focus on as it can drive good profit for your company.
Edging out other competitors can be tough but customer retention can ease competition.
Competition can be stern for small businesses, especially if the competition has more resources and more store locations. The easiest way, to level with these competitors, is to create business based on customer loyalty. A rewards program can help you established this.
Loyal customers can get new customers in.
Loyal customers may recommend your small company to their family and friends. You can always draw new customers from these recommendations. So, pamper your customers with quality service and give them what they deserve. A little loyalty program won’t hurt your business. Take note, the vine is very effective in boosting the statistics of customers getting in your company.
People love loyalty reward programs.
Who doesn’t love getting prizes and freebies every time you get to complete a purchase of this and that? Who doesn’t want a free two days hotel accommodation if you have booked a hotel for a certain number of times already? People are too eager to get rewards so they will religiously go to your store to redeem their points or to get products for rewards.
Customer rewards program do not have to be expensive, if that’s what you think. All you have to do is to get an affordable but working idea to get started. There is also loyalty program software for small business to help you with this endeavor.
With these five special reasons, you should be thinking now. Your small business needs boosting, and customer loyalty can be a great solution to that. Conceptualize a reward strategy that will make your customers happy and advance your business at the same time. You can use loyalty cards and even the latest mobile technology to initiate your program.