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Why your business needs to run a loyalty programme

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.

The 4 secrets to create successful loyalty programs

Loyalty programs are not just trends; they are becoming an innovation in the field of marketing. They have been very effective in maintaining customers and eventually generating new customers for certain companies and businesses.

 There are different rewards program that has been created for buyers to stick to a particular brand and effectively, customer reception increases year after year. But with all the success in this structured marketing technique in generating new loyalty membership, do companies really get paid off with what they are rewarding their clients?

 Some study would suggest that not all are getting their fair share from their rewards program. The program’s success may sometimes vary in different sectors.  But this coequality between the profit and rewards may be cause by some failures in the process of initiating the loyalty program. But really how can one deliver lasting value to their loyalty programs?

 Here are some secrets in managing loyalty programmes and acing this marketing trend:

 Go mobile

Give your customers a full experience of your loyalty programs. Use one of the best technologies to facilitate your rewards program—mobile. Since almost consumers use phones nowadays, get your customers hooked by providing them a mobile loyalty program. You may integrate payments and mobile technology to make transactions a lot fun. And instead of punch cards you can have customer loyalty software like mobile applications to make your reward program more convenient for your clients.

 Using other technology like customer loyalty software to boost your market can be a very clever idea. You may also use other software like mobile CRM to check your business wherever you are and see how your rewards program are working.

 Strategize in maximizing loyalty programs

There are great ways and strategies to maximize loyalty program without hurting your sales. You can award discounts in times that you are losing customers to boost sales. You may also give free services and grant redemption coupons in idle days or hours that you do not have a lot customer.

 If you are a hotel for instance, you may offer great hotel discount during weekdays or working hours. Restaurants may also have unlimited soda or free salad in hours and days with lesser customers.

 Build partnerships

One of the characteristics businesses with successful loyalty program is that they are tying up with other businesses to provide rewards. A shop, for instance, may give discount coupons for a restaurant or a spa. The same spa or restaurant may also give discount coupons for buying something in that particular shop. This way, you do not have to shoulder all your expenses for your rewards because your partners will shoulder that for you. This rewards strategy can help you broaden your reach.

 Answer customer problems with rewards

Freebies are always parts of some loyalty programs. Solving your customer’s problem when they purchase a product from you is always a good idea to pump up sale. Say if you cater online shopping, you may give customers free delivery. When you are selling gadgets, you may give your customers free screen protectors or leather cases.

 One last thing to note for a successful reward program or mobile loyalty program, always put in mind that to get loyal customers your reward program should be consistent and should be loyal to your brand. Let it be that way, and you’ll be sowing great benefits from loyalty program in no time.