Four Important Items To Consider When Building A Customer Loyalty Program
Using gift and loyalty programs can be one of the most effective ways to increase sales and retain customers. Many small businesses rely on them to stay competitive with the bigger companies. However, gift card loyalty programs must be implemented correctly in order for it to be effective. Here are a few things to consider when building customer loyalty programs.
First, it’s important to make the barrier entry almost non-existent. Rather than trying to get customers to sign up at the cash register, there are other ways you can get people to partake in gift card loyalty programs. Try mailing out cards with bonus store credit, get business partners to offer it to their customers, and give customers an instant discount for their purchase in return for signing up.
Second, make sure that there is always a balance on a customer’s card. People are more prone to coming back and shopping if there is still credit left in their card. Not only does this increase sales, it also results in customer loyalty. Customers get accustomed to shopping at a store regularly after the first few times. All this can be done by offering small bonuses or by sending out credit to customers when the balance is low.
Third, make the customer loyalty program simple. For example, a points system is something that customers can easily understand. Many companies make their program confusing and complex such as making 20 points result in 2% off. Instead, why not give a point for every dollar spent and tell customers that they get $10 for every 100 points they earn.
Fourth, reward customers based on their loyalty. Let customers know that the more purchases they make, the more rewards they’ll earn. This is similar to businesses that have membership levels from bronze to platinum. By spending more money, customers will climb a level, and each level will allow them to earn more credits.
Finally, limit the restrictions as much as possible. There’s nothing more disappointing than earning enough credits and finding out that it can only be used for specific products. This will leave the impression that the loyalty program isn’t worth it and result in the customer not coming back.
Customer loyalty programs are worth the investment because they are cost effective. They allow small businesses to build customer loyalty, help track customer buying patterns and increase sales. Building one doesn’t have to be complicated, but it still requires proper implementation for it to work.
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